Tesla is already a leader in the electric vehicle market, but the extent of its advantages in manufacturing may be underestimated.
According to a team of Berenberg analysts led by Alexander Haissl, Tesla’s competitors have opted for a “low-risk, low-investment” strategy when it comes to electric vehicle manufacturing. That will leave Tesla in the driver’s seat with its all-in approach.
“With no clear pathway to high-volume EV [electric vehicle] production for these OEMs [original equipment manufacturers] before the mid-2020s,” write the analysts, “Tesla will be given a near-monopolistic opportunity to gain market share and outcompete the incumbent automotive industry.”
Tesla will invest roughly $US32.7 billion into electric vehicle projects over the next five years, which is 40% more than Daimler and Volkswagen combined, according to Berenberg estimates.
The investment gap comes from traditional auto manufacturers focused on lowering costs by incorporating new electric vehicle technology into existing manufacturing plants, as opposed to new plants solely dedicated to the mass production of electric vehicles.
Additionally, Tesla’s partnership with Panasonic, aimed at improving battery technology, has put Tesla ahead of the pack in that category as well.
“Tesla/Panasonic continue to exhibit a clear advantage on cell and pack technology compared to all peers, on chemistry, cooling and cost,” write Berenberg analysts. “Tesla’s small and actively tube-cooled cells, which are not currently replicated and are unlikely to be so by competitors, drives significantly better residual values and cost-of-ownership advantages.”
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