Elon Musk Says Demand For Tesla Outpaces Production Ability After Giant Orders

Advertisement

Autonomy, a US-based electric vehicle subscription startup, announced that it would order electric vehicles from different manufacturers. The order could be up to 2300 vehicles, it is estimated.

The order is set to cost more than 1 billion dollars. Tesla gets the lion share with 4300 EVs ordered, sending 443 million dollars into Tesla’s coffers. Amazingly only Autonomy’s order is set to share 1.2 % of all orders for the upcoming year, Bloomberg reported on Tuesday.

Now this is an unprecedented order and would surely have sent some ripples among the top hierarchy of the company. A Tesla fan account asked Musk if the company could muster the resources and skill to deliver the order to which Musk responded, stating limitations the company might face in the run-up to delivery. 

“Production is a much bigger challenge than demand,” Musk said yesterday.

Bloomberg also reported the chip shortage, the prime reason for the delays in delivery and the backlog in orders. Moreover, other ongoing supply chain shortages could also impact automakers on the list.

It is also pertinent to mention that Musk is in a tough spot as far as finances are concerned as he sold the largest ever chunk of Tesla’s shares last week for around 7 billion USD to be prepared for the 1 billion fine that would be imposed on him for not buying Twitter.

In addition, some of the significant Tesla investors are also unhappy with how Musk has recently handled the brand name and reputation.

Autonomy is a cool subscription offer as far as we would be able to make EVs by the orders received, and that is a big question mark keeping in view the chip shortage and supply chain issues.

Advertisement

Leave a Reply

Your email address will not be published.