Unfortunately for Tesla Motors Inc (NASDAQ:TSLA), Porsche is not the only competition; it has companies from the Middle East as competition.
To popularize itself, Tesla Motors Inc (NASDAQ:TSLA) has done something that could lead to its downfall. Tesla is famous for its electric automobiles. The company wants to introduce many electric vehicles (EVs) models into the automobile market; this is despite the fact that it will have $20,000 loss on each car. This move has only managed to entice other automobile manufacturers to get into the electric vehicle business. The companies that have been enticed into the electric vehicle business will eventually be a competition to Tesla; this may happen sooner than expected.
Porsche, a subsidiary of the famous automobile company Volkswagen, recently upgraded their EVs. The German company added flat batteries to their models to combat the emission problem of the old models. However, there is a threat from the Middle East, especially China, which is the World’s largest automobile market.
Jia Yeuting, the Chinese billionaire who owns Leshi TV (the Chinese Netflix), is currently funding an EV project. During the 2016 CES, Faraday Futures will announce and reveal its EV and launch the car in 2019. As if this is not enough, Atieva is working closely with Beijing Automotive Industry Corporation (BAIC) on EV projects. Atieva is gradually becoming a popular player in the electric vehicle market.
Atieva was founded by one of Tesla’s co-founders, Bernard Tse and Sam Weng, Astoria Network Chief. The company was initially founded as a battery company and the interest in the EVs came after the company was purchased by BAIC. According to Auto Evolution, Atieva has acquired high-tech battery technology to use on its EV projects. The Korean battery manufacturer, SK Group, in collaboration with Siemens will make the batteries and the vehicles’ design is the responsibility of CECOMP, an Italian company.
It is still early to know whether Atieva will beat Tesla in the EV market. However, the company has extended its scope as far as the Silicon Valley. At the moment, several major tech companies are examining the company’s automobile technology. What is clear as of now is that the company will launch high-tech EVs considering BAIC is owned by the government.
The company recently uploaded what can be termed an ‘intimidation picture’ on its website to represent the concept of the EV it plans to launch. The website states, “Challenging the idea of what a car can be.” This description is there to intimidate other car companies. The website clearly states that Atieva is a modern car company, not a design house.
The presence of Atieva in Silicon Valley already shows that the company will be a threat to Tesla on their home ground. Faraday Futures plan on opening a branch in Nevada. Karma has also not been left behind; it plans to kick-start the production of electric sedans. Tesla cannot be dumb enough to ignore this competition.