Photo: Tesla Inc.
As anyone who knows a thing or two (but no more than that) about the economy is perfectly aware, monopolies are considered illegal, but when they are handed to you by the very same companies that should act as your competition, what are you supposed to do?
This is the situation Tesla finds itself in at the moment - or, at least, that's what Alexander Haissl, an analyst for the German Berenberg Bank thinks. And even though he didn't put it in such strong words, his views are more likely shared by others as well.
“[Manufacturer] complacency about electric vehicle (EV) technology is worse than perceived. Despite more talk of developing EVs for mass-market adoption, a lack of real action and strategic commitments betray their underlying conviction, with no clear pathway to high-volume EV production before the mid-2020s,” Haissl wrote in his report, quoted by Forbes. “Tesla will be given a near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry," he concluded.
He goes on to measure the estimated investments Tesla will make over the next five years, and compare it to what the other manufacturers have announced. Needless to say, Elon Musk's company almost has more money invested in EV development than all the other carmakers combined.
At this point, Haissl's assessment is correct. But it does seem as though a wake-up call has gone through the industry in recent years as the big names have all prepared competitive EVs for the following years. For instance, Jaguar plans to release the I-PACE electric crossover in Frankfurt this year, where rumors say BMW will launch a battery-powered 3 Series with decent range and performance. Audi, Mercedes-Benz, Porsche, Volkswagen, and Volvo have also expressed their intention of competing in this market.
If the public's response to these future electric models from legacy carmakers will be positive, we doubt they won't go to greater efforts on this front. This type of companies are slow to change so it might take them a bit of time, but that doesn't mean they won't eventually do it.
Granted, Tesla will have plenty of time to grow, but that's something it still needs to do to get ready for the moment the big guns of the rest of the industry will take it in their sights. And with the Model 3 coming in just a matter of weeks, its biggest challenge now is to ramp up production to meet the overwhelming demand. Not a bad situation to find yourself in.
“[Manufacturer] complacency about electric vehicle (EV) technology is worse than perceived. Despite more talk of developing EVs for mass-market adoption, a lack of real action and strategic commitments betray their underlying conviction, with no clear pathway to high-volume EV production before the mid-2020s,” Haissl wrote in his report, quoted by Forbes. “Tesla will be given a near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry," he concluded.
He goes on to measure the estimated investments Tesla will make over the next five years, and compare it to what the other manufacturers have announced. Needless to say, Elon Musk's company almost has more money invested in EV development than all the other carmakers combined.
At this point, Haissl's assessment is correct. But it does seem as though a wake-up call has gone through the industry in recent years as the big names have all prepared competitive EVs for the following years. For instance, Jaguar plans to release the I-PACE electric crossover in Frankfurt this year, where rumors say BMW will launch a battery-powered 3 Series with decent range and performance. Audi, Mercedes-Benz, Porsche, Volkswagen, and Volvo have also expressed their intention of competing in this market.
If the public's response to these future electric models from legacy carmakers will be positive, we doubt they won't go to greater efforts on this front. This type of companies are slow to change so it might take them a bit of time, but that doesn't mean they won't eventually do it.
Granted, Tesla will have plenty of time to grow, but that's something it still needs to do to get ready for the moment the big guns of the rest of the industry will take it in their sights. And with the Model 3 coming in just a matter of weeks, its biggest challenge now is to ramp up production to meet the overwhelming demand. Not a bad situation to find yourself in.
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