With big surprise the European car makers are watching the frenetic pace in success of Tesla. Are European companies ready to face the US tech company?
Just 12 years since Tesla first electric car, the Roadster the success of Elon Musk’s company surprised European Manufacturers. In particular, the European car industry did not believe that the company would evolve in just a few years into a giant of the international automotive industry.
It followed the Model S in 2012 and today the electric Model 3 monopolizes interest, recording a huge number of sales worldwide. In just a few years Tesla was able to build its bases in Europe. The success of the Model 3, only a few months after its launch in Europe, has puzzled industry executives, especially those who thought the company would soon be wiped off the car map.
Among them are industry giants such as Volkswagen and Mercedes-Benz, which are either developing or having already released their own electric vehicles. EV manufacturers “are in a much more mature position than two years ago,” says Accenture’s chief executive, suggesting there will be fierce competition in the electrification industry.
Of course, the major car manufacturers have been hit hard by the coronavirus pandemic, which has led to the closure of factories. However, the problem of reduced demand has arisen, as well as the cancellation of large exhibitions.
As Tesla grew rapidly, European manufacturers demonstrated their own arsenal at the right time. When the Model 3 was released, it had to compete with a range of electric vehicles, the BMW i3 series, the Audi A5, the Mercedes-Benz EQC and more. Soon it will be opposite the VW ID.3 which will shake the waters of the class. There is of course also the Porsche Taycan, a four-door electric sedan, which has received very good reviews, but has a high starting price.
Analysts see Tesla’s decision to build a factory outside Berlin as an attempt to remain among the top players and gain a large share of sales in Europe. It is worth noting that in Europe, as in the United States and Asia, Tesla has installed its own fast charging stations and does not expect the governments concerned to make such investments.
Therefore, it gives an extra buying incentive to those who want to buy an electric car for the first time. According to the first data, Tesla’s foundation in Europe will be difficult, as it will clash head-on with the major automakers, which will try to halt its rapid growth.
Recently, Tesla overtook Toyota and ranked top in terms of capitalization among automakers, as its stock market value soared to $209.47 billion. The US company managed to overtake the Japanese car industry, although its production is significantly lower. For example, in the first quarter of 2020, Tesla produced 103,000 vehicles, while Toyota produced nearly 2.4 million.