Elon Musk: Tesla sees ‘strong’ demand due to pandemic

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CEO Elon Musk insists Tesla is experiencing “strong” demand throughout the pandemic and CEO attributes this success to Tesla’s online orders.On Tesla’s latest earnings call, Musk insisted shareholders and analysts shouldn’t worry about demand despite the auto industry as a whole experiencing a major slowdown amid the pandemic.

The CEO has repeatedly said that “demand is not a problem” and “exceeds supply” for the time being.

In an interview with the Daily Drive Automotive News podcast, Musk reiterated that Tesla sees “strong orders”:

“We saw strong orders throughout the pandemic, we still had a good volume of orders. I guess people are less likely to want to go to a dealership and take the test drive and hang out in the lobby and that sort of thing.

Tesla has been betting on internet sales for some time.

This was a controversial topic last year after Musk announced that Tesla would be turning to an online-only model and shutting most of its stores in a bid to be able to sell the Model 3 for $ 35,000.

However, the CEO ended up turning the tide later in 2019 and kept most of his stores open.

At the time, a survey showed that while most Tesla sales are done online, most customers still go to stores to get information from Tesla staff and test vehicles before buying.

Musk’s new demand comments also come after Tesla slashed prices for its Model 3 and Model Y lineup in the last quarter.

Here’s the new podcast that Musk made these new comments on today:

Taking Electrek

I’m sure Tesla doesn’t have any issues with demand, but that’s also because they are pulling some demand levers.

This includes the price cuts and the announcement of the price increase for FSD.

I’m sure Tesla got more orders than they could deliver in the second quarter of these moves.

There are also a lot more demand levers to pull, like the launches of Model Y LR RWD, Model Y 7 Seater, Model S Plaid, etc.

Therefore, I tend to agree with Elon. Demand shouldn’t be an issue anytime soon.

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