Tesla's Real Challengers Are Comming

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Finally, German luxury car manufactures are following the leader in Electric Vehicle. It took them a while to see the expanding EV market, and probably each one of them bough 1 or 2 Tesla Model S to study.

When was the last time an American car company set the bar for all car manufactures of the world to beat it ? So far none came close to the performance of Model S and the soon to be released Model X.
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Mercedes-Benz is reportedly working on a battery-powered electric with range 400-500 kilometer to challenge Tesla Model S.

A Mercedes-Benz-badged Tesla Model S is no surprise of course as BMW, Audi, and Porsche are all planning new electric models to scoop up customers in the inflating electric vehicle market.

Audi will serve up an electric SUV to challenge the $100,000 Tesla Model X, BMW is working on an i5 sedan with carbon fiber construction in both full-electric and hybridized flavors, and Porsche is developing an electric Pajun with the R8 e-tron’s drivetrain.

With more resources and established brand credibility, Germany’s new crop of electric vehicles could put a damper on Tesla’s sales success.


http://www.digitaltrends.com/cars/mercedes-benz-tesla-rival-specs-news-rumors/?ref=yfp

http://www.digitaltrends.com/cars/bmw-i5-sedan-performance-specs-news-rumors/
 
I like Tesla. But they do not have sales success. They are a leader in a niche market. When they have a car that can compete in the larger market of mainstream cars then that would make them a sales leader. They are a minor player and none of the automakers should feel threatened at all by them.
 
Tesla made their patents open and were working with Mercedes at one point.

Musk's vision is to make a significant impact on the environment. This "competition" helps him and Tesla.
 
Originally Posted By: Benito
Tesla made their patents open and were working with Mercedes at one point.

Musk's vision is to make a significant impact on the environment. This "competition" helps him and Tesla.

And Musk is a leader in EV battery tech and manufacturing and plans to be the go-to battery supplier for all of the other EV manufacturers. Tesla is more proof-of-concept in order to increase demand and get the big boys into making EVs and needing batteries to support them.
 
Quote:

With more resources and established brand credibility, Germany’s new crop of electric vehicles could put a damper on Tesla’s sales success.




Couldn't disagree more with the above. The success of those cars will only help Tesla--immensely. Not just because of Tesla's investment in battery production, but because it's just going to grow the pie of electric cars.

Besides, Musk has been very clear that selling super-high end luxury cars was never the end game. By the times these cars hit the road the Model 3 will be out, and those companies will still be playing catch-up.

I didn't really get the whole Tesla concept. I just thought they were (very nice) expensive toys. This article filled it in for me. Have to say, I'm convinced: http://waitbutwhy.com/2015/06/how-tesla-will-change-your-life.html

A very long read, but worth the time IMO.
 
Originally Posted By: Nate1979
I like Tesla. But they do not have sales success. They are a leader in a niche market. When they have a car that can compete in the larger market of mainstream cars then that would make them a sales leader. They are a minor player and none of the automakers should feel threatened at all by them.


Let there be real and unfettered competition between them free of government intervention. The free market will quickly judge them...
 
Originally Posted By: SteveSRT8
Originally Posted By: Nate1979
I like Tesla. But they do not have sales success. They are a leader in a niche market. When they have a car that can compete in the larger market of mainstream cars then that would make them a sales leader. They are a minor player and none of the automakers should feel threatened at all by them.


Let there be real and unfettered competition between them free of government intervention. The free market will quickly judge them...


You mean like every other car company in the world? Oh, wait...
 
Originally Posted By: SteveSRT8
Originally Posted By: Nate1979
I like Tesla. But they do not have sales success. They are a leader in a niche market. When they have a car that can compete in the larger market of mainstream cars then that would make them a sales leader. They are a minor player and none of the automakers should feel threatened at all by them.


Let there be real and unfettered competition between them free of government intervention. The free market will quickly judge them...


You do realize how heavily subsidized the Europeans are right?

This isn't a challenge for Tesla, its simply part of the game plan.

Tesla's largest challenge over the next few years will be bringing the Model 3 to market and selling them in enough volume to turn a profit. The Model S was never designed to be a profit center, simply a proof of concept, and it is very successful in its class.

Interestingly Rolls Royce experimented with an electric car a few years ago and determined that their was simply no market for it. It always seemed like after that Mercedes more or less gave up on the idea as well. Tesla can be credited for making them serious about electric cars, even if they are at the $100k price point.
 
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Originally Posted By: hattaresguy

Interestingly Rolls Royce experimented with an electric car a few years ago and determined that their was simply no market for it. It always seemed like after that Mercedes more or less gave up on the idea as well. Tesla can be credited for making them serious about electric cars, even if they are at the $100k price point.


Rolls Royce correctly determined that there was no market for an electric Rolls Royce Phantom. It's a car that competes with no other automobile. There's no business model for continuing such outrageously expensive development under those circumstances.

I'd credit Tesla less for these emerging electric cars, and the benefit to CAFE numbers and ZEV credits more. The full sized sedans are the largest hits against CAFE numbers.
 
Originally Posted By: DoubleWasp
I'd credit Tesla less for these emerging electric cars, and the benefit to CAFE numbers and ZEV credits more. The full sized sedans are the largest hits against CAFE numbers.

If there was no CAFE nor ZEV credits then Tesla couldn't exit, especially California requires car makers to sell certain percentage ZEV in the next few years. Musk saw an opportunity in ZEV credit and saw a demo about lithium ion in a battery assembly company he came up with the idea of using it in a car, and after that Tesla was born.

Before Tesla no car company think that battery powered car can achieve more than 100 miles driving distance. They were thinking of performance of battery powered golf cart, 5-15 MPH and distance of 5-10 miles.

As with any new technology, the first few generations are expensive but the price goes down as volume goes up after few years.

As pointed out, Model 3 is very critical for Tesla to survive as a car company. If they can do it right they will be a dominant player of alternative vehicles.

It's very clear that Tesla paved the way for EV, they showed the world that BEV(Battery Electric Vehicle) is a viable alternative vehicle to existing ICE.
 
Tesla certainly takes advantage of the regulatory environment, the same way every company does.

But they jump started the market for EV's, before Tesla they were simply just a side show.
 
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Originally Posted By: Nate1979
If Tesla 3 doesn't sell enough they will be out of business in a few years. What comes after the 3?

Another sports car
 
Originally Posted By: Nate1979
They are a minor player and none of the automakers should feel threatened at all by them.


Find a way to extend the range and recharge quickly, people won't want gasoline cars no more.
 
Originally Posted By: Merkava_4
Find a way to extend the range and recharge quickly, people won't want gasoline cars no more.


Only if the cost of electricity is competitive with gasoline. I suspect electricity is currently cheaper than gasoline, but if electric cars become widespread, who knows what the cost will be of bringing on-line all of the new plants that will be needed to power all of these vehicles.
 
Originally Posted By: SeaJay
Only if the cost of electricity is competitive with gasoline. I suspect electricity is currently cheaper than gasoline, but if electric cars become widespread, who knows what the cost will be of bringing on-line all of the new plants that will be needed to power all of these vehicles.

Currently national average cost per kWh is 12 cents. Model S uses 1 kWh for about 4 miles of driving at 60 MPH, so it costs $1 for 33 miles. Compares with similar cars such as MB S550 and BMW 740 at 25 MPG with national average of $2.30/gal, it costs MB and BMW $3. So the saving is about 66% compares with gasoline cars.

On top of saving in gas there are other savings such as no oil to change, no ATF/Diff or coolant to worry about.

Another benefit is don't worry about importing crude oil from countries that are not so friendly to US.
 
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