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Tesla Continues to Have No Competition
Despite a flood of capital and EV companies showing up, Tesla maintains its lead. If there was an actual competitor to Tesla, it could be BYD, but it's clear Tesla is the only profitable EV company, according to Tesla Economist.
About half of BYD's revenue is from EV's. Or hybrids... There is nothing new about a hybrid and BYD makes a loss if you remove all government subsidies. Tesla is the only profitable company making electric vehicles and their production and manufacturing is unmatched.
China is copying Tesla's manufacturing and ordering giga presses. Some have even said that BYD will make as many EVs as Tesla in a few years. And others have said that the other Chinese companies will soon overtake Tesla. This has been said for several years now, and yet Tesla maintains and increases their lead.
Nobody else has hit volume production for BEV - battery electric vehicles. Tesla achieved this over 4 years ago, something that was so difficult for Tesla. He had to get the whole company working on the Model 3. Achieving a profit is impossible unless the entire company works super hard to save the world and has millions of dollars of stock options as incentive.
Volume Production
Volume production is difficult to reach. It takes a company with real motivation from creative people. Creativity comes from freedom of thought more than it does from higher IQ.
Everyone is so far behind and Tesla is so far ahead. Everyone thought that what Tesla was doing was repeatable and replicable. Tesla has moved far ahead and has a long waiting list for all its vehicle, even before the 4680 Model Y from Giga Texas. Other EV makers are still stuck 5 to 10 year behind.
Consumers could consider other vehicles, such as the Volkswagen ID.4. Consumers aren't moving to electric vehicles because they want an electric vehicle. They are moving to electric because they want a Tesla. Even with the tax credits, this isn't helping other EV auto makers.
The biggest market for EV sales is in China. China should do what they can in that market and other markets like Norway and Australia that are small. China will have a hard time in the U.S. if they try. Japanese autos succeeded in the U.S. because there was not a Tesla equivalent at the time.
Plain and simple, people want Tesla vehicles, not just any other electric vehicle.
Do you think anyone will catch up to Tesla anytime soon?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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Comments
I think it’s for good that
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I think it’s for good that companies are not able to reach teslas capacity. Tesla is a much hyped vehicles with lot of issues. Electric cars not completely environment friendly. Let the companies figure out how to recycle batteries, make batteries in a more environment friendly way and how do we get so much electricity if all the cars in US are electric. I don’t think we are there yet and Tesla is very hyped.
Tesla has a mission to force
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Tesla has a mission to force the entirety of legacy auto to move to EV.
So far it has been moderately successful. However the next 3 years will be key. As Tesla starts eating into the 11m light truck market where US legacy auto make all their profits, panic will begin to set in. If you run the figures, Tesla already sells 10% of all US auto sales which are below light truck. Their installed capacity is 30% now.
The job of Tesla is to make legacy auto realise that they transition to full electric or they go bankrupt.
So far legacy auto has convinced themselves that Tesla is just a minor irritant they can deal with when ready.
What they do not realise is that Tesla learned the hard fact that to compete with legacy auto they had to be more efficient and more profitable.
This Tesla has done. Now Tesla is on a growth track, fully internally funded, which will take away 20m vehicles a year from legacy auto.
The competitors to Tesla are predominantly Asian, not US or European and they will take another 20-40 million vehicles if they execute correctly.
Ford appears to have recognised this. VW seemed to be on track until the legacy board ousted Diess.
What else is left?
If you own stocks in legacy auto you should be lazer focused about all of this.
As for the delayed, legacy auto, arguments above? Not worth replying to. It will become evident in the next 3 years. We'll it is already evident but it will be evident to an unreasonable doubt by then.
"unless the entire company
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"unless the entire company works super hard to save the world and has millions of dollars of stock options as incentive."
What puerile and biased writing. Absolute dreck and an embarrassment to journalism.