On Monday, the American automobile giant Ford unveiled its new all-electric Mustang Mach-E SUV in a breakthrough announcement. The Mach-E SUV is pitched to revive the Ford Mustang legacy while simultaneously adopting the trend for next-generation electric vehicles.
Needless to say, the first glimpses are quite stunning as the Mach-E sets up new precedence in the electric car industry. While taking the competition bar higher, the Mustang Mach-E will hit the streets next year in 2020.
Ford’s announcement of the Mach-E has already got industry experts talking. It is pretty obvious that Ford has positioned its Mustang Mach-E against the Tesla Model Y.
Tesla, which has been the key player in the electric car industry is also observing the developments closely. With automobiles giants like Ford making a full-fledged entry in the electric vehicle industry, Tesla is likely to face a stiff competition going ahead. This means that the electric vehicle and battery manufacturer could see further stress on its balance sheet. But is Telsa really afraid of the competition coming its way? Well, it doesn’t seem so!
Elon Musk Loves Competition
Tesla CEO Elon Musk has been quite about the developments needed in the electric vehicle industry. In fact, he has always pushed for more players and competition coming to the market that can benefit the industry and consumers simultaneously.
Earlier this year in March 2019, Musk also praised Tesla competitors for accelerating the development of their electric cars. Telsa has previously stated that its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.”
Ford’s entry to the electric car industry could prove to be a gamechanger as it can bring its decades of experience in the automobile space in this segment. In its pursuit of transforming the automobile industry, Tesla has faced several headwinds in the past.
In fact, Elon Musk has also been criticized for having a too ambitious vision for the industry. But with persistent efforts, Musk has managed to take the company this far. In a major invitation, VW CEO Herbert Diess said that Germany could probably be a more accommodating place for Tesla than its hometown of California. Speaking to Bloomberg, Diess said:
“What Tesla probably is looking for is the environment, the infrastructure, to build high-quality cars, which is probably much more the case here in Germany than on the West Coast of the United States.”
In another Bloomberg news, Tesla is all set to develop the world’s largest lithium-ion battery at its Hornsdale facility in South Australia. Tesla plans for a massive 50% expansion to 150 MW of electricity production. Tesla’s entry in South Australia has helped to overcome the region’s electricity issue due to less supply of coal energy.
As solar and wind energy are becoming the realistic competitors to fossil fuels, utility-scale batteries are acting as a bridge between the two. On the other hand, big battery projects in Australia are on the major surge and Tesla is finding a huge opportunity there with its solutions ready.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bhushan Akolkar , 2019-11-19 10:06:24 ,