Tesla is slowly but surely making some noise, although there are some car buyers who remain skeptical. Shifting to an electric vehicle does address the concerns on fuel prices and pollution, although the longevity of its use remains up for debate.
At some point, moving forward, Tesla is bound to come up with a viable solution. Charging stations are being put up, and the battery each hybrid is continuously being improved. For as long as Tesla stays on course, there is no denying that consumers may eventually prefer a plug-in car over a fuel-powered one. And apparently, CEO Elon Musk is aware of that happening.
Riding on the crest of Tesla’s unexplainable stock surge, Musk claims that their vehicles are appreciating assets especially with their self-driving capability, Electrek.co reported. But similar to any form of investment, depreciation plays a role. In the case of Tesla vehicles, it will not be spared from such. Hence, Musk explains that price increases will eventually happen in the coming years, especially for Full Self-Driving options.
Undoubtedly, Musk feels pretty confident about where Tesla is headed. His projections do make sense, although there is debate on whether these electric hybrids could eventually overtake gas-powered vehicles. In the eyes of Musk, a decline in the values of traditional gas-powered cars is possible.
“Who in their right mind would buy an ICE after 2025, knowing its residual value will be zilch? Legacy auto: go EV or go BUST!” is super important for car buyers. Residual values for gas/diesel cars will plummet in the coming years,” Musk said via Twitter.
Musk has all the reasons to be upbeat on the future of Tesla, particularly the future of electric vehicles and their groundbreaking features. But as far as seeing the decline of gas-powered vehicle value, seeing that happen is anybody’s guess. There are several factors to consider when it comes to shifting to an EV. That includes affordability and availability. In the eyes of some, Tesla remains a tech company rather than an automotive one. Coverage remains limited for the American company, although it is not discounted that Musk has plans of making its reach broader.
The values of gas-powered vehicles are not spared from depreciation, a reason why auto companies come out with new variants annually. For as long as this practice continues, Tesla will need to push and aim higher if they are to carve its niche in the automotive market segment.