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The automotive group led by Elon Musk has a net income of $721 million for 2020, its first full year of making money.
California-based Tesla, the market leader in electric vehicles, earned $721 million in profits in 2020, propelling its CEO Elon Musk to the position of the world’s largest fortune. However, the group is losing its invulnerability in the face of the increasing number of electric offers on the market.
At the beginning of 2021, the Tesla group becomes more affordable and seeks to defy all competition, lowering the price of its Model 3 by 14% in Europe. At the beginning of January, the latest Model Y was 30% cheaper in China. Previously, Tesla took advantage of the 100% electric monopoly, but in recent years, rivals have multiplied. However, according to EV Volumes, a data specialist, Tesla had 79% of electric vehicle sales in the United States in 2020.
Founded in 2003, Tesla owns the factory in Fremont, California, as well as the factory in Shanghai, since 2019. Reflecting a strong increase in vehicle deliveries, in 2020 Tesla had a significant increase in government credits for manufacturers of zero-emission vehicles.
Revenues grew 46% in the fourth quarter to $10.7 billion, 28% for the full year to $31.5 billion, and the share price rose 750% in 2020. This new price discount in Europe and China appears to be in line with Elon Musk’s desire to offer affordable electric cars.
Elon Musk also reaffirms its desire to expand more massively on the European market, which it has long put aside. Although sales of 100% electric cars doubled in Western Europe in 2020, Tesla’s sales lost 10.7%, while its market share dropped from 30.9% to 13.4% in Europe. These declines are undoubtedly linked to the absence of Tesla factories on the continent.
In addition, in December 2019, the automaker entered the S&P 500 stock market index at $820 billion. The group is now worth more than Facebook on the New York market, and this stock market boom allowed Elon Musk, who owns about 18% of the capital, to become momentarily at the beginning of the year the richest man in the world.
Elon Musk remains ambitious, and forecasts nearly 750,000 vehicles for 2021: “It is possible that we may go faster in some years, as will probably be the case in 2021.” says Tesla’s CEO in a statement.
Read also> THE DIFFICULT TRANSITION OF THE LUXURY CAR SECTOR TO ELECTRIC CARS
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