![Tesla Model S Signature. [Image Credit: Intel Free Press/Wikimedia Commons]](https://staticr1.blastingcdn.com/media/photogallery/2017/10/12/660x290/b_502x220x82/tesla-model-s-signature-image-credit-intel-free-presswikimedia-commons_1627663.jpg "Tesla Model S Signature. [Image Credit: Intel Free Press/Wikimedia Commons]")
Tesla has invested large amounts of money, but the company has never been profitable due to the high cost of producing Electric Vehicles (EVs). Tesla has been bleeding financially, but the company believes that it will create profits in the future. Many car manufacturers want to compete in the market for EVs, so, they will launch close to 50 new models from now until 2022.
The vehicle manufacturers know that they have to be innovative because it's part of a global trend. China is the biggest market and it wants to increase the output of electric vehicles to reduce pollution.
In America, California wants companies to manufacture more electric cars or buy credits from its rivals.
A crowded market and losses
Tesla has caught the minds of consumers and investors, who are spending huge amounts of money in the California-based company. According to a report by the Birmingham Times, there will be 136 models of EVs by 2022. EV manufacturers aren't profitable because of expensive battery technology, such as General Motors who loses about $9,000 by every Chevrolet Bolt that the company sells.
Tesla had record sales of electric vehicles last year ($7 billion), but the company lost a huge amount of money: $675 million. Fiat Chrysler Automobiles also loses money with EVs, so, the CEO of this company stated that the marketing of electric cars should be based on the demand.
China is a key player
According to a report by The New York Times, the manufacturers of electric cars have to increase the production of these vehicles to meet China's demand, as it has become the biggest market in the world. The Chinese government wants to increase the production of EVs because they want to reduce the pollution levels by 2030, so, carmakers have to produce a certain number of electric vehicles to keep selling traditional cars in China.
General Motors is the largest foreign seller in that Asian nation, so, it will release electric technology in a lot of models by 2025.
Tesla will offer more competitive prices
The California-based company has been competing in an expensive market, as it often sells its models S and X for more than $100,000, but the ambitions of the company don't stop here.
Soon it will launch the Model 3, which will be more affordable at a price of just $35,000. According to a report by the Birmingham Times, the company founded by Elon Musk has stated that more than 450,000 consumers have spent $1,000 to reserve the Model 3. Elon Musk has been seducing consumers of expensive German vehicles, Tesla is competing in this segment. The fight for the market of EVs will be more competitive the next years.
