Elon Musk Says Tesla’s Biggest Problem Isn’t Growing Competition From Rivals

Tesla CEO Elon Musk cites supply chain constraints—not rival automakers—as Tesla’s biggest challenge towards growth.
Written by Allison Stone
Reviewed by Kathleen Flear
Jul 7, 2022
Tesla
has made a name for itself as a trailblazer in the automotive world, but the innovative company hasn’t been without its ups and downs. Still, in spite of delays,
price hikes
, and allegedly nearing bankruptcy, the brand has pulled ahead of competitors to
record earnings
.
Tesla has even surpassed its reputation as a niche product in the electric automotive market to be a best-selling luxury brand overall.
So then, what stands between Tesla and total market domination? 
In a statement reported by
Bloomberg
, CEO Elon Musk brushes off the notion that as increasingly-competitive electric vehicle market is to blame. Instead, he cites supply chain constraints as Tesla’s biggest obstacle to growth. 
Jerry
looks at supply chain issues in the electric vehicle market and what this means for Tesla’s future. 

Elon Musk praises Tesla’s competition

While Musk doesn’t see rival automakers as the key to Tesla’s woes, it is somewhat of a catch-22. 
Brands like Ford have encountered a similar problem to Tesla. Cars like the electrified pickup F-150 Lightning have proven to be wildly popular among consumers, but actually producing them is a different story. 
With 200,000 orders to fulfill amidst a microchip shortage and a
lithium shortage
, actually getting your hands on an F-150 Lightning could prove difficult. 
While Musk praised rival car companies for being “extremely competitive, hardworking, and smart,” having so many other players in the EV segment with such limited supply only puts more strain on the supply chain. 

How Tesla plans to recover

Elon Musk went on to say that Tesla has had a rough quarter, and has been relying on workers to help production get back on track. 
“This has been a very tough quarter, primarily due to supply chain and production challenges in China, so we need to rally hard to recover!” Musk said in an email to employees.
The Shanghai factory was hit hardest recently and was even shut down for three weeks in the midst of Shanghai’s COVID-19 lockdown. 
Elon Musk went to extreme lengths to get production restarted, even going so far as to get staff to live and work onside in a so-called “closed-loop” system.
Musk continues to echo sentiments that Tesla is working as fast as possible to meet consumer demand.

Saving money on an electric vehicle

Even with shortages and supply chain issues causing problems across the industry, the demand for electric cars hasn’t gone down. Whether you already own an electric car or you’re seriously considering it, getting a car that saves you tons of money on fuel costs could be worth the wait. 
If you’re looking to cut your
car insurance
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Jerry
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.
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Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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