Tesla is destroying the competition. After a record production month in June, Tesla continues to ramp and is ahead of the pack. Here's why.
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Tesla Is Destroying the Competition
Tesla is destroying the vehicle industry and cannot be stopped. There's many reasons for this and we'll go over them now.
Tesla started with the Model S around 2012, but along the way, there have been many challenges. Tesla has faced its own challenges ramping the Model 3 and ramping new factories, and in addition to that, thousands of car startups have gone bankrupt and Tesla and Ford are the only two companies not to go bankrupt.
Tesla is making electric vehicles and they are getting more and more popular. In 2019, there were 2.2 million electric cars sold world-wide, then in 2020, that rose to 3 million, then in 2021, that rose to 6.6 million, more than doubling. Electric cars are the cars of the future.
Can't an existing car company simply put in a battery pack into a car and have it ready to be sold? If this were true, wouldn't that be happening? It turns out, you can't just attach a battery pack into an existing car. It turns out that engineering, manufacturing, and batteries are essential.
Millions of Battery Cells
Each Model 3 and Model Y long range vehicle is equipped with about 4,416 (2170) battery cells that are placed inside the battery pack underneath the car. That's a lot of batteries. For 4680 batteries, it would require 960 of them.
Batteries are made from raw materials and as Tesla gets into millions of units sold, those raw materials are becoming ever important. Tesla has also talked about mining their own materials or partnering with other mining companies.
There's many more options for electric vehicles - with some cheaper than a Tesla. GM has promised that they will have 30 EVs before 2025. How many of these are actually selling. Tesla has registered 175,574 vehicles in the U.S. between January and May of 2022.
The next company is Ford with 17,409... About 10% of what Tesla did. Kia, Nissan, Audi, and Polestar are next, but less than 10% of Tesla. Tesla has a head start, but Ford just needs to 10x their production to catch Tesla, right?
Well, it's not that simple. Tesla grew 66% year over year with growth in Fremont, Giga Shanghai, and new factories in Giga Berlin and Giga Texas. Tesla's growth is showing no sign of slowing down. It's a huge challenge for a car company to build EVs to get to where Tesla is today, let alone to where Tesla will be in 5 to 10 years time.
Tesla has many contracts for batteries and leads in technology, along with in-house production and manufacturing that other companies are partnering with other companies to do. Tesla has their own destiny in their hands. I don't think that other companies can catch up to Tesla - they are the king of EVs. June of 2022 was Tesla's highest production month in its entire history.
Do you think Tesla is going to dominate the competition? If not, what competition will catch up?
For more information, see this video below from Ryan Shaw:
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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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