Tesla reveals massive plan for 2021

Tesla was one company that managed to experience unprecedented success during a global pandemic with a market cap that earned Tesla the title of the most valuable automaker in the world valued at $600 billion. Tesla’s success can be attributed to the unveiling of new battery innovations as well as the announcement of building two new factories in Texas and Germany.

Since the initial public offering and entrance into the stock market in 2010, Tesla shares increased nearly 13,000 percent and minted a $600 billion market capitalization making Tesla one of the most valuable companies in the world and the most valuable carmaker. Some argued that Tesla was massively overvalued but survived the coronavirus (COVID-19) pandemic as many companies took a hit in stock value.

It might seem impossible for Tesla to keep this rising success from falling but their ambitious plan promises success for 2021. Tesla will also be working towards raising an additional $5 billion following the acquisition of multibillion-dollar equity issuances over the last couple of years. Tesla sold a limited amount of new shares for eager investors while acting as a minimal dilution of existing shareholders so Tesla could liquidate shares on Wall Street for additional funding for 2021.

Another financial aspect behind the success of Tesla was incentives for buyers who could receive a $7,500 federal tax credit and drove electric-vehicle (EV) sales. This Obama-era initiative called for a threshold of 200,000 EVs sold and Tesla has crossed this threshold that takes away the incentive for EV buyers.

This federal tax credit is phasing out and the Trump administration wasn’t in support of a new round of tax credits for EV buyers, but president-elect Biden could revive the program. Biden was working as vice president with President Obama during this green initiative and is likely to revive the program that has gained interest in a majority of automakers.

Tesla will have some support in reviving this federal tax credit for EVs with supporters including Volkswagen, GM, and Ford. This the federal tax credit is renewed, Tesla indicates little concern in being able to sell more than 500,000 vehicles in 2021.

Musk indicates that the EVs will be getting improved updates, improved interiors, exterior cosmetic improvements, and some models will feature faster engines. Tesla will be leaning on higher-volume Model 3 and Model 7 as well as the “Plaid” mode for Model S that is better than the “Ludicrous” mode going zero-to-60-mph in only 2.3 seconds.

2021 will also bring a new age of Tesla models including the long-awaited Cybertruck as well as the Semi and the New Roadster entering production since the 2017 reveal. Tesla will also be focusing more on the solar and battery storage business with the upcoming green-economy-boosting Biden presidency.