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Why Tesla is Killing Competition in the Automobile Industry?

In the third quarter of 2018, Tesla made more cars than Porsche and Jaguar (in 2nd quarter Tesla was far away from Jaguar and Porsche). 83500 is not huge number for automobile industry in the world, but if we calculate the 83500 with average price of Tesla cars, we will get more than 5 billion dollars.

And at this moment, both Jaguar and Porsche could not offer analogical model of electric cars made by Tesla. The technological difference between Jaguar I-PACE or GM Bolt and Tesla Models is very huge and at this moment Tesla is unreachable for competitors.

In 2019, Tesla is planning to launch Tesla Semi, he safest, most comfortable truck ever with better battery system, with better engine etc. The batteries used in Tesla are one of the best on the worlds. The latest research shows that after driving 185000 miles Tesla’s any model, the battery loses only 10% of its power (people drive average 12000-18500 miles per year, so it means, after 10-15 years battery will lose only 10% of its power). WOW. The batteries of Tesla are charged very fast, are very powerful and are one of the key factors of success of Tesla.

 

The other interesting thing is that people buy Tesla not only for saving money on fuel or for advantages of battery, but also for design and comfort too. Size of interior is bigger (as the hood is smaller and compact and there is not need for big hood for big engines) and also luxurious. And so on, Daimler, BMW, Audi and Lexus are starting to worry.

In 2017, Tesla was sold more than S Class of Mercedes, 7 Series of BMW and Audi A8 (categorized with all of them by price) in Europe. Tesla Model S had 30 % growth in sales in Europe, while sales of BMW 7 Series were decreased by 13%. In other words, Tesla wins competition in home marketplaces of European giant automobile industries. In US, the process is done faster. In 2018, Tesla Model S has more than 10% growth is sales, while for example sales of Cadillac XTS were decreased by 27%, and sales of Mercedes-Benz S class were decreased by 16%. Overall , in 2018, sales of Tesla have growth equal to 563.6% (WOW N2) while whole sales of Mercedes-Benz in US were decreased by 15.6%.

 

Tesla also starts to play role in price of fuels. Despite of the fact that only in one country electric vehicles of Tesla decrease the volume of sales of fuels (in Norway, and yes, I want to remove to Norway to breathe some fresh air😊) in future, the number of countries will rise and in other words, Tesla compete with “Big Oils”.

 

Another key factor for Tesla’s success in competition is that every year, Tesla invests 2 billion dollars to electric vehicle industry. Nowadays, from big players, only GM is planning to invest more from 2020 (3-5 billion every year for competing with Tesla as now they are far away from Tesla in industry of electric vehicles).

To sum up briefly, having all these advantages mentioned below, Tesla does not stop improving and getting more and more advantages from competitors ( for instance they plan to make electric cars worth less than 25000$, make battery life longer, new sport models) so in future we will see full dominance of Tesla in Automotive industry of the world.

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