Tesla Shares Plummet 8.45% Amid Declining Model 3 Subsidy Applications in Germany
Friday, Sep 6, 2024 6:32 pm ET
1min read Tesla Inc (TSLA) saw a significant drop of 8.45% recently. According to reports, the number of subsidy applications for the Tesla Model 3 in Germany is dropping. In August, there were only 559 applications, the lowest number for the Model 3. Analyst Matthias Schmidt noted that the total applications from January to August amounted to 6,043, with monthly figures steadily decreasing since January's 911 applications. Germany holds substantial importance as Europe's largest electric vehicle market, and maintaining leadership there is crucial for Tesla.
Moreover, reports emerged in August that Tesla is contemplating the construction of a new Gigafactory in Germany, specifically in Lower Saxony. This facility would follow Tesla's nearly completed factory in Shanghai, ensuring Tesla's ability to meet the growing demand in Europe.
Recently, an observer pointed out Tesla's increased data collection activities in certain regions of California, including Burbank. These efforts are speculated to be in preparation for an upcoming autonomous taxi unveiling event. Tesla's CEO Elon Musk confirmed the original plan was to hold this event on August 8, but it was postponed to October 10 due to significant design changes. Tesla's autonomous taxis will utilize the company's Full Self-Driving (FSD) technology.
In a separate development, Tesla is gearing up for the 2024Inclusion conference in Shanghai. The company plans to showcase cutting-edge products, including the Cybertruck and Optimus humanoid robot. Musk aims to bring down the cost of robots to $10,000-$20,000, with limited production expected to start next year.
Tesla's AI team recently outlined its global deployment roadmap for its FSD functionality, planning to introduce it in China and Europe by the first quarter of 2025, pending regulatory approval. The FSD system, which comprises multiple versions like Basic Autopilot, Enhanced Autopilot, and Full Self-Driving, continues to evolve, with its latest iteration promising significant advancements.
While Tesla's executives remain hopeful about the FSD’s entry into the Chinese market, regulatory hurdles and ongoing scrutiny over data security and safety might delay its implementation. Analysts note that the introduction of FSD in China could serve as a catalyst for local advancements in autonomous driving technology.
Finally, industry experts opine that Tesla's robust focus on AI and its disruptive "hardware pre-embedded + software fee" model might offer insights for other automakers. Nevertheless, the efficacy and acceptance of Tesla's FSD in the complex Chinese road network remain to be seen, especially against local rivals with established technology.
Moreover, reports emerged in August that Tesla is contemplating the construction of a new Gigafactory in Germany, specifically in Lower Saxony. This facility would follow Tesla's nearly completed factory in Shanghai, ensuring Tesla's ability to meet the growing demand in Europe.
Recently, an observer pointed out Tesla's increased data collection activities in certain regions of California, including Burbank. These efforts are speculated to be in preparation for an upcoming autonomous taxi unveiling event. Tesla's CEO Elon Musk confirmed the original plan was to hold this event on August 8, but it was postponed to October 10 due to significant design changes. Tesla's autonomous taxis will utilize the company's Full Self-Driving (FSD) technology.
In a separate development, Tesla is gearing up for the 2024Inclusion conference in Shanghai. The company plans to showcase cutting-edge products, including the Cybertruck and Optimus humanoid robot. Musk aims to bring down the cost of robots to $10,000-$20,000, with limited production expected to start next year.
Tesla's AI team recently outlined its global deployment roadmap for its FSD functionality, planning to introduce it in China and Europe by the first quarter of 2025, pending regulatory approval. The FSD system, which comprises multiple versions like Basic Autopilot, Enhanced Autopilot, and Full Self-Driving, continues to evolve, with its latest iteration promising significant advancements.
While Tesla's executives remain hopeful about the FSD’s entry into the Chinese market, regulatory hurdles and ongoing scrutiny over data security and safety might delay its implementation. Analysts note that the introduction of FSD in China could serve as a catalyst for local advancements in autonomous driving technology.
Finally, industry experts opine that Tesla's robust focus on AI and its disruptive "hardware pre-embedded + software fee" model might offer insights for other automakers. Nevertheless, the efficacy and acceptance of Tesla's FSD in the complex Chinese road network remain to be seen, especially against local rivals with established technology.
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