Tesla Electric Cars To Face 'Stiff Competition' Against Start-up Company
Tesla has always dominated the competition in electric vehicles for years. However, it seems the giant automaker company is going to face tough competition as some mainstream companies and one particular start-up company are also planning to challenge them.
In an article written by Martin Bigg in CarBuzz, Tesla will face companies such as Volkswagen, Audi, and Mercedes-Benz in the competition of electronic vehicles segment. However, the company should worry more about facing Rivian Automotive, a US start-up automaker company.
Morgan Stanley analyst Adam Jonas said in an interview with CNBC that Tesla's domination in the competition is currently "unsustainable". Soon, Jonas said, it will be disrupted by Rivian Automotive.
Jonas' comment about Tesla is something that the company should take note. This is because his thoughts on electric vehicles are widely subscribed by people in Wall Street.
He said that Rivian Automotive is the next serious competition against Tesla. This is because it is currently in a clean sheet start-up with access to talent.
The Rivian Automotive also has a capital focused on the fast-growing segments of SUVs and pickup trucks. Jonas estimated that Tesla is currently making 80 percent of US electronic vehicle market and it captures as much as 90 percent of electric vehicle revenues.
So far, the Rivian Automotive is showing plenty of potentials that Tesda should take notice. The Rivian Automotive previously previewed their R1T electric truck prototype last November at the Los Angeles Auto Show.
The Rivian R15 is a seven-seat passenger SUV that is powered by four electric motors and it produces a combined 754 hp and 826 lb-ft of torque. Meanwhile, Tesla CEO Elon Musk said the company will debut an electric pickup truck this summer 2019.
Musk previously said in his Twitter account that he would like to include a pickup truck design. He also said that he wants an all-wheel drive with "crazy" torque and a suspension that adjusts for a load.
Jonas said that Morgan Stanley believes that companies like Rivian will have elevated importance in investors' minds as electric vehicles became the focus of the OEM investment and strategy. Moreover, Jonas said that his company has a firm belief that all-electric vehicle architecture will need a "clean sheet approach" to have Tesla.
The rising popularity of Rivian Automotive is considered as the biggest news in the US autos this year so far, Jonas said. Nevertheless, he said that the development of an electric pickup truck from both automaker companies could post a "serious problem" for other Detroit automakers.