The main companies testing the technology on public roads are Mercedes, Ford, and Toyota. Among other closely related industry companies, you can mention Google, Apple, and Baidu. Among the listed OEMs, Tesla Motors has brought remarkable technology to the market. For the first time on the market, a series vehicle was offered that could drive the motorway itself, was connected to a network and established all connections to the other onboard devices.
Share traffic information with other Tesla (tesla stock) vehicles in the same region, e.g. Smartphone and notebooks. These efforts are being accompanied by governments and agencies to update the law and adapt to these innovations. Many tests have been conducted by national organizations to improve these new technologies, resulting in a reduction in road traffic accidents and deaths. In the UK alone, self-driving cars will prevent 2,500 deaths, improve driving conditions and reduce associated stress between 2015 and 20,3056.
Others companies are also trying to bring self-driving vehicles to market. The benefits include lower insurance prices due to fewer car accidents, car thefts and fewer cars. According to Elon Musk, Tesla Motors will be completely autonomous and allow drivers to fall asleep by 2018. We are planning to introduce some type of driving technology and it is likely to be another two to three years before governments legalize these goals. All over the world, OEMs will therefore prove their effectiveness on public roads.
The same approach, completely new in this industry but very common in others (e.g. in companies), was also recently used by Toyota to create a mass market for hydrogen vehicles. With the aim of increasing the number, the company should rely on a wider dealer network and move its direct sales-based model to a more open model that should enable car sales through different channels besides the online model.
Will the competition compel automakers to reduce price
These changes have lowered the average selling price (ASP) compared to 2018. We do not expect the ASP to change significantly in the short term. So this year, volume growth and revenue growth should be more closely related. By increasing the construction rate of the Model Y production lines at Giga Factory Shanghai and Fremont, we can further accelerate sales growth. These production increases will increase the revenue associated with total vehicle deliveries. Total GAAP revenues of $ 4.1 billion were almost unchanged in 2019 compared to 2018. Hence, the competition will not affect Tesla too much. If you also want to know balance sheet of Tesla, you can check at https://www.webull.com/balance-sheet/nasdaq-tsla.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.