Tesla Withdraws Its Goal of Building 20 Million Cars Annually by 2030 - Latest Global News

Tesla Withdraws Its Goal of Building 20 Million Cars Annually by 2030

Good morning! It is Friday, May 24, 2024, and this is The morning shiftYour daily summary of the biggest headlines from the automotive industry around the world in one place. Here are the most important stories you need to know.

1st gear: Tesla’s production is weakening

Tesla is having a really tough time right now. If it is not about recalls due to sloppy Construction of its flagship Cybertruck then it is Mass layoffs And declining salesNow the cost of those sales declines is becoming clear, as Tesla has reportedly cut production of some models and abandoned one of its most ambitious goals.

The electric vehicle manufacturer has reportedly stopped production of its Electric SUV Model Y Shanghai, reports Reuters. New data shows the electric car maker has reduced production of its best-selling model at its Chinese plant by a “double-digit percentage.” As Reuters explains:

With this step, the US manufacturer wants to counteract the falling demand for the aging models in China. China is the company’s second largest market, where the majority of the cars produced in the Shanghai plant are sold. In view of the economic downturn, a brutal price war has also broken out among the manufacturers of electric vehicles.

The Shanghai plant, Tesla’s largest production site worldwide, planned to cut Model Y production by at least 20 percent between March and June, said the person, who asked not to be identified because the matter is confidential.

Data from the China Association of Automobile Manufacturers (CAAM) shows that Model Y production in China was 49,498 units in March and 36,610 units in April, down 17.7 percent and 33 percent year-on-year, respectively.

In addition to the drop in production in China, Tesla also dropped one of its most ambitious goals this week. In recent years, Elon Musk proudly claimed that his company would ships more than 20 million cars annually – that’s more than Toyota manages today.

However, after the claim was made in 2021 and the 2022 annual impact reports, the automaker has deleted the wording in its latest edition, reports Bloomberg. The site adds:

Tesla sold 1.8 million vehicles in 2023 and has already warned that growth this year will be “significantly slower.” Musk promised in April to launch cheaper vehicles as early as late 2024. But people who work with the CEO say he is primarily focused on the launch of a fully self-driving car, which Tesla plans to unveil on August 8.

With a renewed focus on autonomous taxis compared to cheaper electric models Is the goal of 20 million cars per year for the general public now simply unattainable for Tesla?

2nd gear: Elon Musk has changed his mind on EV tariffs

The decision to reduce production at Tesla’s Chinese factory comes just days after the USA imposed massive 100 percent tariffs on the import of Chinese electric vehicles into the country. This was followed by Threats from China to impose similarly harsh penalties on gasoline-powered cars from Europe and the USA coming into the country. Now, after all this, Musk has decided that he actually against tariffs on electric vehicles.

The Tesla boss originally said tariffs were essential to protect the competitiveness of car manufacturers in Europe and America. But now he has changed his mind and warned that such measures were “not good” because they “hinder the freedom of exchange or distort the market”, reports Forbes. According to the website:

Musk’s latest comments were a departure from warnings he issued earlier this year about Chinese electric vehicles, in which he appeared to call for government intervention. At Tesla’s earnings call in January, Musk said Chinese electric vehicle makers were the “most competitive car companies in the world” and he believed they would have “significant success” globally, “depending on what kind of tariffs or trade barriers are put in place.”

The Tesla CEO then warned: “If trade barriers are not put in place, they will pretty much ruin most other companies in the world.” China is Tesla’s largest foreign market and the carmaker faces strong competition there from domestic brands such as BYD and Nio.

Under the President Joe Biden announces new customs rules Last week, a 100 percent levy was imposed on electric vehicles, 25 percent tariffs were imposed on lithium-ion batteries and battery parts, and an additional 25 percent tariff was imposed on key materials used in the production of electric vehicles, such as graphite and cobalt.

With these new fees, which are set to take effect on August 1, Tesla could face some high additional costs. Currently, the company has not yet Sell ​​one of its China-made electric vehicles in the USA, but exports them to Europe, Australia and New Zealand, where additional tariffs on Chinese electric vehicles are also being considered.

3rd gear: Boeing has a long road ahead to restore its reputation

If there is one company that is having a bumpier start to 2024 than Tesla, it is Boeing. The American aircraft manufacturer faced allegations of poor manufacturing practices and quality control problems for a door stopper on one of his aircraft broke away in mid-flight and was even involved in a scandal surrounding the death of a whistleblowerNow the company is facing a federal investigation into its quality control and it could take years to recover, experts warn.

Federal Aviation Administration investigators have now claimed that the American aircraft manufacturer has a “long way” to go to build safe aircraft again, reports the GuardianThe website explains:

In late February, FAA Administrator Mike Whitaker gave Boeing 90 days to develop a comprehensive plan to resolve “systemic quality control issues” and prohibited the company from expanding production of the 737 MAX.

He said the FAA has worked closely with Boeing over the past 90 days to “determine what that plan will look like to get quality back to the level required in their factories.”

“It’s about getting the safety system up to the required standard and creating a company culture that allows employees to speak up if they notice something that gives them cause for concern.”

The FAA has Meeting with Boeing planned Executives will discuss what steps will be taken to address the problems next week. CEO Dave Calhoun will be in attendance and has promised a “comprehensive action plan” to help get the company back on track.

4th gear: GM is fully committed to autonomous vehicles

This week we were able to get our first impressions of some important new models from General Motors. like the Silverado EV that should be the Battle for the Tesla CybertruckBut such cars are not at the top of the company’s priority list, as CEO Mary Barra has outlined her ambitions for the company: Rely fully on autonomy.

At an event this week, the GM boss supported her company’s plans for autonomy. reports Reuters. To date, GM’s autonomous ambitions have included invests heavily in Cruise and its fleet of self-driving taxis that have terrorized California. As Reuters explains:

Barra’s comments come at a time when companies working on autonomous driving technology are pushing to develop new, feature-rich cars that are designed to be safer than those driven by humans.

However, the companies are subject to intense regulatory scrutiny following accidents involving self-driving vehicles.

“When you think of autonomous vehicles, this is the pinnacle of artificial intelligence coupled with machine learning,” [said Barra] “This really leads to a world where we’re going to be safer because 90% of the accidents that happen on the roads today are caused by human error. So if we have technology that doesn’t drive impaired or drowsy, that knows all the traffic laws and obeys all of them, that’s going to lead to safer roads for everyone.”

Autonomous vehicles will be under increasing scrutiny this year as automakers bring more test vehicles to market and self-driving semi-trailers finally arrive on our motorways. For this reason, countries like Great Britain have set up entire organisations to deal with Securing self-driving cars and ensure that they can be rolled out safely.

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