- Tesla embarks on a series of trials, with changes to vehicle range, worker’s pay, and pricing, and decides on a production pause.
- Vietnam’s VinFast gears up to spread its wings in India’s robust electric vehicle (EV) market with a major investment plan.
- Robust developments in corporations such as Tesla and VinFast have far-reaching impacts on the electric vehicle market globally.
Your Weekly Pro Recap on Electric Vehicle Industry
The electric vehicle industry is buzzing with action every week. Tesla’s restructuring of not just pricing but much more makes headlines. EPA revises its standards which prompts a pay hike for Tesla’s U.S. employees. Meanwhile, VinFast of Vietnam makes a grand entry into the Indian market with a substantial investment pledge.
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Week of Trials for Tesla: From Range to Pay, Pricing, and Pause
Tesla Inc (NASDAQ:) came under a bit of a cloud this week. Firstly, the EV luminary has issues with its modified driving-range assessments for its electric vehicles. In response to a revamped U.S. government rule, Tesla revisited its range projections for diverse models to echo authentic world performance. The action was a result of worries that Tesla’s range projections were overshooting actual capacities, leading to customer dissatisfaction.
North America saw a makeover of Tesla’s Model 3 while it successfully held its prices. The variant with an upgraded long-range boasts of covering 341 miles for each charge, including new advancements and colour choices. This step seeks to breathe new life into Tesla’s range of vehicles in its core market, after a pricing competition and markdowns in 2023.
Tesla’s shares took a beating Thursday following news that the company will give pay hikes to its employees at its California car factory, in line with other nonunion carmakers like Toyota (NYSE:), Volkswagen (ETR:), and Hyundai (OTC:). The move for pay raise comes against the backdrop of the United Autoworkers Union (UAW) intended campaign to expand membership in the U.S., negotiating successfully with the top Detroit automakers in 2023.
However, CEO Elon Musk’s focus on cost-cutting measures could take a hit with Tesla’s move to raise pay. Musk has repeatedly underlined the difficulty of making electric vehicles cheaper, even as interest rates show an upward trend.
Adding to Musk’s worries of paring expenses, Tesla has officially lowered the prices of its Model 3 and Model Y in China, cutting costs from Rmb6.5k to Rmb15.5k. Analyst checks point out that the price cut was not as large as the market anticipated. The new base Model 3 will now cost Rmb245.9k, and the base Model Y, Rmb258.9k.
Tesla will also stop production for a while at its plant near Berlin, from January 29 to February 11. The pause ensues from modifications to transport routes following recent attacks on vessels in the Red Sea.
Tesla’s shares (TSLA) closed on Friday, plummeting 7.4% over the week.
The image of the new Tesla:
VinFast’s Bold Move into India
Eyeing the rapidly growing electric vehicle (EV) market in India, Vietnam’s VinFast Auto (NASDAQ:) has announced it will set up its flagship EV facilities in the southern Indian state of Tamil Nadu. The EV manufacturer intends to invest an aggregate of $2 billion, with the first $500 million dedicated to the initial five years of the project.
VinFast’s foray into the Indian market indicates the company’s intent to set up camp in the world’s third-largest vehicle market. The facilities to start construction this year will include manufacturing units for EV, with an annual capacity of 150,000 vehicles. The project is expected to create around 3,000 to 3,500 jobs.
The government of Tamil Nadu has shown support for the project by clearing land for the manufacturing units and promising a consistent power supply, along with other necessary infrastructure amenities.
VinFast also took the wraps off its newest electric models at CES 2024, presenting the VF (NYSE:) Wild, a mid-size pickup truck, and the VF 3, a mini-sized eSUV. The target driving range of the VF 3, tailored for smart, sustainable, and easily accessible urban mobility, is 125 miles for each full charge. The company has plans to introduce the VF 3 globally, with reservations beginning later this year.
The week saw VinFast’s shares (VFS) end on a down note, shedding 6.65%.
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The ever-changing landscape of electric vehicle corporations like Tesla and VinFast can significantly impact the global market and potential foreign exchange trading or asset investments. Investors watching these spaces for potential opportunities should stay informed and alert.