Tesla has taken another step “towards world domination,” according to Motley Fool Live. Host Jason Hall chatted with Danny Vena, a contributor for Fool, about what some news means for Tesla shareholders. Vena noted that every day it seems like there’s a new headline about either Tesla or Elon Musk. (Well, technically, there are many headlines every day about these two.)
Vena shared that he believes that the EV market is going to be much larger and that Tesla is the “biggest game in town.” (Nothing new there.) He also noted the news that said Tesla is going to be manufacturing EVs in India.
He went over Tesla’s recent incorporation of Energy Private Limited and Tesla Motors India as well as the local government’s statement about India’s budget and how this will benefit the local population. The local area, Karnataka, is where the EV manufacturing unit will be set up, and Karnataka’s Chief Minister, BS Yediyurappa, noted that the facility was a part of the list of benefits that were promised to Karnataka in the Union Budget. “American firm Tesla will open an electric car manufacturing unit in Karnataka,” the statement by Yediyurappa said.
“I think from an investing standpoint that’s important, because if you look at what Tesla is doing by setting up a manufacturing and production facility in a country that has a lower per capita income, they’re going to be able to produce those cars at a much lower price,” Vena said. “In so doing, I think that’s going to make them much more attractive to potential electric vehicle buyers in India. They could also potentially export those and export them at a lower cost than what they can produce them elsewhere. I think this is a big deal for Tesla. It’s just the next step in Tesla’s ongoing mission to dominate the planet with electric vehicles.” (This could be a key part of Tesla’s strategy to get to sales of 20 million vehicles a year.)
Thoughts On World Domination
Isn’t it cool that Tesla, which started out as an automaker with the goal of producing EVs that would accelerate the world’s transition to sustainable energy, is being linked with world domination? When you look at what Tesla has achieved and what it plans to achieve in the future, this is a company that you would want to dominate the world. (Clearly, the phrasing relates to the auto industry, or the energy industry at the most.)
In regards to air pollution, much of it caused by the global transportation sector. Eliminating this contribution by creating electric vehicles is what will help clear the air, but this is easier said than done. One challenge is the multitude of myths surrounding EVs. Tesla has accelerated the push toward EVs by creating products and a brand that prove those myths wrong.
Let’s take range anxiety, for example. Many are worried that they will be stranded with a dead car in the middle of the road if they go electric. Tesla makes this extremely unlikely. If you charge your car, this won’t happen, and Tesla will even tell you when and where to charge. You can also end up stranded in the middle of the road with gasoline vehicles if you don’t fill up the tank. One of the issues for a while with EVs was the lack of charging stations, but Tesla solved this by creating and expanding its Supercharger Network, as well as implementing a brilliant navigation system.
Tesla also made electric vehicles sexy, fun, fast, and cool.
Then there was the common concern that electric vehicles were just too expensive, but Tesla has consistently chipped away at the cost, and Tesla’s strong presence in China and now coming presence in India help to dissolve that widespread concern. Tesla has brought the price of long-range EV down so much that high sales volumes (and manufacturing) in China and India are viable. Importantly, these are two of the most populated countries on the planet and have the highest levels of air pollution.
In 2019, the BBC reported that Dehli Chief Minister Arvind Kejriwal said that air pollution in the north of India had “reached unbearable levels.” The article also noted that Delhi’s Health Minister, Satyendar Jain, had advised the city’s residents to “avoid outdoor physical activities, especially during morning and late evening hours.” With Tesla now having a presence in India, I think it will soon start producing EVs there and many will catch Tesla fever. Perhaps it will be a big market for the coming “Model 2” (not an official name, but we don’t have anything better yet).
Having an EV brand with a huge following that supports clean energy is important to helping India fight air pollution from exhaust pipes. Perhaps in 2029 we will see articles reflecting on India’s journey to clean air and how Tesla played a role in that.
We need companies that are pro-future to be “dominating the world.” It’s not about profits or stocks. It’s about cleaner air for everyone.