Coronavirus COVID-19: What Does the Future Hold for Tesla and EVs?

Tesla Model S

Tesla and Elon Musk Tackle COVID-19 Crisis

Elon Musk initially reacted to the COVID-19 crisis with skepticism, but soon changed his tune. If you can’t beat ’em, join ’em? Perhaps this line of reasoning persuaded Musk, Tesla and SpaceX to join in the fight. Despite being forced to shut down amid the Coronavirus outbreak, Elon Musk and Tesla are quite busy.

Here is a list of the things they’re doing to pitch in:

March 18th: Tesla suspends production and begins making ventilators.

On March 18, Musk announced on Twitter that Tesla, along with General Motors and Ford, will begin manufacturing hospital ventilators.

March 21st: Elon is helping — and taking this pretty seriously

Elon acquired 1,000 ventilators from China and had them delivered to Los Angeles. California Gov. Gavin Newsom confirms he is deeply grateful for the gesture. Tesla’s factory in Buffalo, New York, is also planning to re-open to produce ventilators “as soon as humanly possible”.

March 25th: SpaceX joins in the fight

According to reports of an internal memo, SpaceX employees are fighting COVID-19 by making face shields and hand sanitizer to donate to organizations in need.

What Does the Future Hold for Tesla?

Auto Manufacturing expert Sandy Munro sat down with E for ELECTRIC recently. He has some insight into the future of Tesla, as well as other EV manufacturers, due to the unprecedented circumstances surrounding COVID-19.

Munro notes that although this will inevitably slow down production of electric vehicles, Tesla is more likely to endure it. The reason for this is because they are less diversified – their focus is solely on electric vehicles. However, due to circumstance, all automotive makers will likely need to narrow down their production to their highest money-makers and models that can be quickly assembled. So while GM may shelve EV production in favor of making popular trucks, Tesla will continue on a straighter path. Unfortunately, even so, this may mean Tesla will put certain models on hold.

The good news for Tesla is that they are already well established. For EV companies that are still in the early stages, it may not be possible to recover from this setback.

What Influences EV Auto Industry Recovery – Post Coronavirus?

Munro lists two additional factors in the future of automotive makers. 1) A manufacturer is only as fast as his slowest parts supply chain. How long will it take for these businesses to get up and running at top speed? Each will have a different time frame, and until all are fully functioning, the manufacturer will be slowed or left at a stand still. 2) Lack of confidence in the economy or a specific manufacturer. While consumers are waiting on the up-tick, might they decide now is not a good time to buy? Or they will perhaps decide ‘Ford is taking too long, so I guess I’ll go with Tesla’.

“If the buying public loses confidence in the products being sold, or just loses confidence in general with the economy and the companies that are trying to survive, then we’re all doomed.

– Sandy Munro CEO of Munro & Associates

So Munro believes that the consumer will ultimately decide the fate of automotive manufacturers.  People’s confidence in the recovery of the economy will play a key role in the end result for individual companies and the automotive market as a whole. So what shapes the future of Tesla amidst this pandemic? It involves you!