Elon Musk’s challenge: Stay ahead of the competition

Elon Musk will confront a disquisitional claiming during Tesla’due south Investor Twenty-four hour period on March 1: Convincing investors that even though rivals are catching upward, the electric-vehicle pioneer can make another leap frontward to widen its pb.

Tesla Inc was the No. one EV maker worldwide in 2022, just China’s BYD and others are closing the gap fast, co-ordinate to a Reuters analysis of global and regional EV sales data provided by EV-volumes.com.

In fact, BYD passed Tesla in EV sales last year in the Asia-Pacific region, while the Volkswagen Grouping has been the EV leader in Europe since 2020.

While Tesla narrowed VW’southward atomic number 82 in Europe, the U.Southward. automaker surrendered basis in Asia-Pacific besides every bit its dwelling market equally the competition heats up.

The most pregnant challenges to Tesla are coming from established automakers and a group of Chinese EV manufacturers. Several U.S. EV startups that hoped to ride Tesla’s coattails are struggling, including luxury EV maker Lucid, whose shares plunged 16% on Th after disappointing sales and financial results.

Over the next two years, rivals including General Motors Co, Ford Motor Co, Mercedes-Benz, Hyundai Motor and VW will unleash scores of new electric vehicles, from a Chevrolet priced below $30,000 to luxury sedans and SUVs that tiptop $100,000.

On Wednesday, Mercedes used Silicon Valley as the backdrop for a lengthy presentation on how Mercedes models of the near-future will immerse their owners in rich streams of entertainment and productivity content, delivered through “hyperscreens” that stretch across the dashboard and make the rectangular screens in Teslas look quaint. Executives also emphasized that only Mercedes has an advanced, Level 3 partially automatic driving organization approved for use in Frg, with approving pending in California.

In China, Tesla has had to cutting prices on its acknowledged models nether growing pressure from domestic Chinese manufacturers including BYD, Geely Motorcar’s Zeekr make and Nio.

People’s republic of china’s EV makers could get another boost if Chinese battery maker CATL follows through on plans to heavily discount batteries used in their vehicles.

HOLY GRAIL

Musk has said he will apply the March ane event to outline his “Principal Plan Part 3” for Tesla.

In the nearly seven years since Musk published his “Master Plan Part Deux” in July 2016, Tesla pulled ahead of established automakers and EV startups in most important areas of electric vehicle design, digital features and manufacturing.

Tesla’s vehicles offered features, such every bit the power to navigate into a parking space or make rude sounds, that other vehicles lacked.

Tesla’s then-novel vertically integrated bombardment and vehicle production automobile helped achieve higher profit margins than nigh established automakers – even as bigger rivals lost money on their EVs.

Fast-frontward to today, and Tesla’s “Full Self Driving Beta” automated driving is yet classified past the company and federal regulators as a “Level 2” driver aid system that requires the human motorist to be ready to take command at all times. Such systems are common in the industry.

Tesla before this calendar month was compelled by federal regulators to revise its FSD software nether a recall guild.

Tesla has established a wide lead over its rivals in manufacturing applied science – an area where information technology was struggling when Musk put frontward the last installment of his “Master Plan.”

Now, rivals are copying the company’s production technology, ownership some of the same equipment Tesla uses. IDRA, the Italian company that builds huge presses to grade large 1-piece castings that are the edifice blocks of Tesla vehicles, said it is now getting orders from other automakers.

Musk has told investors that Tesla can continue its lead in EV manufacturing costs. The visitor has promised investors that on March 1 they “will be able to see our most advanced production line” in Austin, Texas.

“Manufacturing technology volition be our virtually important long-term strength,” Musk told analysts in January. Asked if Tesla could brand money on a vehicle that sold in the Us for $25,000 to $30,000 – the EV manufacture’due south Holy Grail – Musk was coy.

“I’d probably be asking the same question,” he said. “Simply we would exist jumping the gun on future announcements.”