Should global carmakers be terrified of Tesla? Yes, here are 4 reasons!

08/26/2019

Posted by: Joshua-Philip Okeafor

Share this post:
Tesla is still seen as a fringe player by many top automakers. This view could be misleading because of some factors that show Tesla means business. Check below for our analysis on the greatest competencies of Tesla!

‘Tesla is the car of the future;’ You might have probably heard these words many times in different paraphrases, perhaps so much that it starts to sound boring. No matter how many times EV cars fanatics use the words, one thing is for sure; the words are as serious as they appear.

Elon Musk is of course an excellent or ambitious businessman who recognizes opportunities and when to grab them. He is also a master at using the right words to entice his followers. However, his creation of Tesla vehicles is one of the best things that has happened in the automobile industry in not so recent times.

Elon-Musk-in-car

Elon Musk is an innovator well ahead of his time

Be inspired with the Tesla story!

Tesla is not the first-ever produced electric vehicle, but its influence in the automotive industry has made it so powerful that most leading automobile companies should fear this company and its auto products. Truly veteran automobile industry stalwarts deserve all the respect they can get from their customer base, but there is a possibility Tesla might be replacing many of them in years to come. 

One compelling reason Tesla is likely to cause this upheaval in the industry and scare other leading automakers is because it has literally upgraded what we know of cars in the last 40 years of production. Tesla has opened a dor to a whole new dimension which is exceptionally different. For most automakers, when they promise a better version of their latest vehicle, we get a dusted up and cleaner engine, which may or may not surpass the previous model's. Of course it is usually still powered by fossil fuel.

Tesla broke that barrier with its production of world class vehicles with alternative, renewable energy, which is easily recharged at home or office coupled with solar panel integration. This eliminates the total dependence on petrol or diesel usage.Of course electric energy in cars is the current industry buzzword globally, and has been for years. 

However, as mentioned earlier, Tesla did not make the first EV, and other companies are fast climbing aboard the Hybrid to EV train also. Apart from this, there are several sold factors that may decide on whether Tesla does turn out to be the biggest kid on the automotive block soon:

>>> More information for you to understand Tesla: Working principle of electric cars - why it is a top choice for environment sustainability

Current advantages of Tesla that might scare other automakers

1. Taking bold steps

Tesla is synonymous with bold innovation. In 2012, the Model S succeeded in moving to the top of the market and maintained that position through a unique style evidenced by many awards. Two years after this recorded victory, came the Tesla Model X, which is pretty famous for its fancy look, as it comes with a door that has a falcon-wing design, coupled with automatic opening and closing rear door; this also took a spot in the top of the market.

These all of course take a backseat to the recent breakthrough in 2017 with the Tesla Model 3. Even at a high (for entry level sedans) price tag of $40,000 (14,400,000) the Model 3 recorded hundreds of thousands in sales in the US. The European market is expected to yield similar success patterns.

 Tesla-logo-on-black-background

Tesla logo symbolizes future posibilities

2. Encouraging sales figues

One of the ways to record the success of any automobile company is the confirmed number of units of models made and sold over the years. For Tesla, it has been quite promising.

In 2014, Elon made the reckless prediction that Tesla would be able “to achieve at least a half a million cars a year by 2020.” Many saw this as unachievable as the company is a new one with a relatively small market; That was years ago and the EV market has grown and grown. So far, the company has been making progress.

The Model S alone accounts at present for an estimated 57,000 vehicles made, sold, and delivered. In 2018, about 245,162 vehicles production were recorded altogether. 2019 production is yet to be officially tallied, but Tesla is keeping so far to its projected sales of about 360,000 to 400,000 cars this year. By 2020, its goals of 500,000 productions could be realistic.

>>> Read more: [Amazing] America’s best-selling premium car of year 2018 was the Tesla Model 3

Watch the best-selling lineup of Tesla - Tesla MODEL 3 2019!

3. Design and technology dominance 

Many prominent automakers have been paying less attention to sedan car production and giving more resources and time to bigger models like the SUV, pickups and crossover for profit and huge sales. On the other hand, Tesla has managed to maintain its hold on sedan models and making it even sportier and better than most previous designs. Of course the reason it has done that is due to a confirmed dominance in EV technology for mass market sedans. A soon to be released Model Y will be on the market next year with significant production projections. However, because of the exterior size, many have been contemplating that the car will be way too small.

Experts who rode the car during its unveiling in March 2019, have debunked that the Model Y car is sleeker, taller, and with enough space than its appearance. Interior wise, the vehicle has 3 rows of seating, which is not only comfortable for kids but also for adults. This is is in addition to the equipped technology and safety features. Having captured the mass sedan market, Tesla is ready to begin a foray into the SUV and crossover market too. 

Model-3-and-Y

The Model 3 is Tesla's most successful model till date; could the coming Model Y surpass this?

4. Growth in Revenue

Tesla has consistently recorded 107% growth in revenue throughout the past 11 years of productio; for most startups, this is very much unlikely. Even when the company seems to have a setback as a result of take-off by competitors, it still strives to maintain a spot at the top. With new models arriving the market soon, there will be an expeced boost in revenue.

Tesla is arguably here to stay, and traditional auto companies would do well to start seeing this comany as the carmaker to beat in coming years.

>>> Need automotive Reviews, News, and information about New Releases? Naijauto.com got your back!

Share this post:
Joshua-Philip Okeafor

Joshua-Philip Okeafor

Car buying & selling

Joshua, or KK as friends call him, is a Filmmaker, Writer and Director. A Christian, Joshua is a product of Nigeria’s foremost film school, the National Film Institute, Jos, where he majored in Writing/Directing. Joshua began his writing career at age 18 when an older brother gave him a four page outline of a children novel. Joshua intends to keep writing and directing. His screen name is sometimes Joshua Kalu Ephraim (Writing), and sometimes Joshua KK (directing).

Related Articles

See more
Covid 19