Germany’s Electric Cars Are Coming for Elon Musk and Tesla

IRL/GB

Germany's Electric Cars Are Coming for Elon Musk and Tesla

Germany’s Electric Cars Are Coming for Elon Musk and Tesla

The big German car manufacturers are rapidly catching up on Tesla Motors.

Starting with Jaguar’s I-Pace crossover and later this year Audi’s e-tron, virtually every major carmaker is rolling out stylish, sporty electric vehicles in the mold of the Tesla Models S, X and 3.

Unlike Tesla, though, these giant car manufacturers have roughly a century of experience ahead of Tesla in marketing and launching models every few months and have the ability to spread development costs across a broad portfolio. Mike Jackson, the chief executive officer of U.S. vehicle retailer AutoNation Inc. referring to the German automaker’s electric ambitions, said:

“The vehicles I’ve seen are far superior to anything Tesla has. They are in a massive pivot and shift away from diesel investment into electrification in both pure electric and plug-in hybrid.”

So Tesla is witnessing rapid and growing competition from companies like BMW, Mercedes, Audi, Jaguar, not to mention the global competition market, all rolling out Tesla fighters

Tesla so far has been unprofitable and the competition is coming at a tumultuous time for the company. So far this year in the first quarter they have burned up another $1 billion in cash.

Elon Musk has committed the company to solving it’s production issues for the Model 3, which is the key to bringing electric vehicles to the masses. He has even shut down analysts asking pointed questions on conference calls.

While Jaguar’s I-Pace SUV has been available for order since last month, Tesla’s stiffest challenge will come from Germany. A phalanx of fossil-free competition is heading for dealer showrooms — from Volkswagen’s I.D. family, aimed at the mass market, to the Mercedes EQ C crossover and Porsche’s Mission E, both coming next year.

Porsche last week upped its forecast, saying sales of plug-in and electric cars would make up half of the total deliveries by 2025.

Tesla is set to remain a force in the electric vehicle market, according to IHS Markit. It’s persevering and doesn’t show any sign of letting up, according to Stephanie Brinley, an analyst with the researcher.

“Tesla has a good starting point, and new competition doesn’t negate Tesla,”

IRL/GB


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