Analysts believe that Tesla will make a huge mistake if it does not launch some models. According to Guggenheim analyst Ali Fagri, Tesla will lose huge revenues in the next 10 years if it cannot bring a $25 model to market. He added, "In the mid-000s, entering the low-cost car market will be critical to supporting Tesla's growth prospects."
On Wednesday, Tesla CEO Elon Musk rejected the possibility of launching a $25 model this year. He said the company will focus resources on rolling out fully autonomous driving technology and securing higher prices for models like the Model 000 and Model Y.
He said: “We are not currently developing a $25 model, but we will be developing one soon. At present, the technology of fully autonomous driving is the most important.”
In short, despite Tesla's somewhat disappointing earnings announcement, Wall Street bulls were unaffected. “We advise investors that Tesla shares remain mandatory,” said Morgan Stanley analyst Adam Jonas.
Tesla's multibillion-dollar camera module catches the attention of Samsung and LG
Tesla's multibillion-dollar order for a camera module is piqued by a number of companies. These companies are currently bidding, with the likes of Samsung and LG on the long list of bidders. A report out of South Korea claims that two Korean manufacturing giants are vying to win orders from Tesla.
The report claims that LG Innotek, Samsung Electro-Mechanics and many other companies are participating in the auction. The tender process will be completed in the first quarter of this year.
Tesla's billion-dollar camera module orders will reportedly be used for the Model S, Model X, Model 3, and Model Y. The company will launch these models soon. In addition, chamber orders for the production of an electric semi-trailer and an electric pickup Cybertruck are available for bidders. These models are not yet in production.
However, it's important to note that his 2022 orders will translate into some 2023 products. So the deal is worth a lot of money. Typically, eight (8) sets of camera modules are used in a company electric vehicle. The most expensive cameras are in the front of the car.
LG Innotek and Samsung Electro-Mechanics, bidding this time around, were previously the main suppliers of Tesla's in-car camera modules. Among the camera modules acquired by Tesla last year, LG Innotek supplied 60-70% and Samsung Electro-Mechanics supplied 30-40%. However, Samsung Electro-Mechanics is expected to receive more orders this year as Tesla looks to diversify suppliers to keep prices down.
