Globally, there is an evident transition towards efforts that aim for a sustainable energy ecosystem. Electric cars have become a wild topic of discussion for the past decade and Tesla’s contribution to this is unprecedented. Tesla’s endeavors for clean energy generation have been noteworthy and even though critics have openly provided warnings about the hovering of competitors in the electric-car market, there are not sufficient grounds for which this competition can be said to be meaningful.
Considering that electric vehicles’ sales entail only 1 percent of the total sales of vehicles globally, it is safe to claim that there is not a significant basis for competition at this level. With such a small share of sales, this market is not yet as profitable for the conventional automakers.
Tesla has been a powerful brand and its alluring marketing strategies combined with its innovations are appealing to those who have the resources to own a Tesla. However, as the market for these vehicles is predicted to grow due to a worldwide increase in the stricter global-emissions policy as well as the requirements of fuel-efficiency, big automakers are aware of the need to penetrate into the market; therefore, competition is not the only reason.
Tesla’s latest launch of Model 3S was a prominent step as along with it the high-profile competitors also announced their preparations for the release of their electric vehicles. These include BMW Mini E, Volkswagen I.D, and Bayton K-Byte.
Clearly, these brand names have a stringent policy towards customer satisfaction and they have never lagged behind in utilizing innovative technologies for the development of their vehicles in order to ensure safety, and additionally be attentive towards a strategy for sustainability that goes beyond zero-emission cars. The intentions of these automakers are more inclined towards making a mark in the “electric vehicle space” rather than only aiming to compete with Tesla.
Moreover, research suggests that the apparent competitors of Tesla are having a difficult time getting their electric cars up and running at a competitive level because their marketable characteristics are incomparable to those of Tesla. These companies have not yet achieved vertical and horizontal integration of markets which is a vital step in overcoming the high costs of operating in the automobile industry, whereas Tesla is already effectively functioning under the same.
Tesla is a seller of multiple markets which is unmatched by any other auto company in the industry simply due to its dynamic research and design efforts that have allowed the development of technologies that are unparalleled. Being the first manufacturer of the electric vehicles, Tesla has been able to undertake the production of these cars at higher levels than any company may have produced, annually.
The aforementioned discussion portrays that as Tesla continues to innovate at a faster pace and lower cost than its apparent competitors, it is quite far ahead in committing to its claim of accelerating the transition to sustainable energy.
The question is whether there really is a competition between Tesla and the rest of the big automakers; Tesla’s potential and distinguishable features are giving a tough time to the rest of the automakers in the industry to catch up with the new developments.