Tesla, one of the latest and most talked-about EV (electric vehicle) companies, seems to be taking the lead in design and manufacturing. Tesla has plenty of technical experience and is producing battery-powered cars that have sufficient power and driving range. The electric-car manufacturer has gone ahead to build the largest lithium-ion battery plant that should support its projected vehicle demand.
The company wanted to hasten the transition to sustainable energy, and in doing so, it came up with plug-in electric cars that feature an advanced autonomous driving technology. The tech, better known as “Autopilot,” is considered one of the most advanced EV technologies and is one of the key selling points of the Tesla.
This electric-car maker has made electric vehicles a reality, though the electric-car market has barely interfered with the sale of gasoline-powered cars. Germany, Britain, France, Norway, and India are already planning to go fully electric in a few years. Several other countries also want to get on board. And this can only mean one thing: that an electric-car war is looming.
Unfortunately, Tesla isn’t going to win this war. First of all, Tesla has a track record of failing to meet demand and has been continuously accused of making unreliable cars. The company has been surviving on lofty promises because Musk is a genius at organizing epic new-product reveals that pleasure loyalists and keep the stock price up.
In addition to the looming cash burn, Tesla is also facing stiff competition from Volkswagen, Audi, Toyota, and other luxury brands, like Porsche and BMW.
Let’s delve further into why Tesla won’t win this war:
20 Volkswagen Is Already Scheming To ‘Leapfrog’ Tesla In EVs
Volkswagen has declared that it’s confident it’ll become the EV leader by 2025. While the company was entangled in an emission scandal back in 2015, it’s now diverted its attention to battery-powered cars, and the target is one million electric cars by 2025. This is a clear sign that VW is going to clash with Tesla, which is also promising to produce one million cars by 2020. The heads of the VW brand have openly stated that their company has the capability to surpass whatever Tesla has done.
VW is a major brand with years of experience and millions of loyal customers, and this alone should make Tesla panic.
Worse, VW wants to make these cars for the volume market–not for the premium market like Tesla does. While this is still something debatable, the reality is that VW is a reputable carmaker–with scale–that wants to transform its operations, while Tesla is a startup that’s trying to scale up. VW has numerous cost advantages, among other perks, and the odds will be in its favor.