Tesla Inc., meanwhile, reported a record revenue of $28 billion (£21 billion) for the three months ending September 30. That’s a 12% increase from the same time last year. The EV manufacturer’s revenue trajectory has been nothing short of groundbreaking. It now faces enormous headwinds, particularly in the Indian market where sales have ground to a halt.
No wonder ChargePoint’s revenue surged, as Tesla keeps rolling out its own charging network. Since Tesla vehicles can be charged easily at home, charging overnight will add 44 miles (70.8 km) of range per hour. The electric vehicle leader is seeking to expand its own network of superchargers. These chargers can provide enough power for ~170 miles of range in just 15 minutes! In the context of India, the charging infrastructure rollout has lagged behind, with currently just around 25,000 charging stations deployed. Currently, EVs represent under 3% of overall passenger vehicle sales in the country.
Though Tesla was able to achieve record quarterly revenue, the company’s profits took a major plunge, declining by 37% over the same timeframe. This drop is due in part to rising cost from tariffs as well as continued research and development expenditures. This sale reflects very little local manufacturing interest from the company in India. Instead, it has opted for a cumbersome import-led strategy which may pose far higher obstacles to a successful entry into the Indian market.
Notably, concerns over Tesla’s troubles in India have been registered by industry experts. Hormazd Sorabjee remarked, “Their sales numbers are low by any standard.” This phrase expresses the crux of the challenge that Tesla now faces in a market where EV adoption is growing, but still nascent.
Tesla’s direct-to-consumer approach to vehicle maintenance is another way they’ve diverged from traditional automakers. Mr. Agarwal added, “Most of the [maintenance] service is executed in a remote manner utilizing software updates which lowers cost of ownership. Home charging is 1/10 the cost of petrol. This approach seeks to improve the customer experience while reducing the cost of operations.