In June 2020, I wrote a newsletter called “How Tesla’s Elon Musk sinks into the competition as soon as his momentum builds”, where I analyzed Tesla’s strategies for derailing the competition in his footsteps. It seems that whenever a competing automaker is about to take a substantial step forward, Musk or Tesla releases an update that simply takes anybody else’s attention away. In this week’s newsletter, I want to talk about what Elon Musk and Tesla can do in 2021 to combat an expanding EV market and take the momentum out of companies that claim to be “the next Tesla”.
Rivian
With Rivian hitting the market soon with his R1T pickup and R1S SUV later this year, Tesla has a unique opportunity to stem the momentum of the oncoming carmaker. Rivian, headed by CEO RJ Scaringe, has an adventurous, outdoor appeal to its consumers and reservation holders, a strategy that really speaks to EV drivers who choose electric motors because of their environmental impact. Rivian is probably the first electric car company to see its products used regularly in off-road environments, exactly what they are designed for.
Tesla has always had a relatively luxurious connotation to his name, as his cars are generally sporty, elegant and perfect for driving on open roads, where the accelerator can occasionally hit the floor (not suggested or recommended by me). However, Rivian’s R1T, which boasts a traditional pickup truck design, is not as talked about or as popular as the Tesla Cybertruck. On frequent occasions, Cybertruck seems to come out of nowhere with a newly released modification or design update in the hands of Elon Musk. With Musk revealing that the Cybertruck has been modified and reduced in size by 3%, there is no reason why Tesla will not show new photos of the fully electric “Cyberpunk” pickup when Rivian is about to gain momentum. The conversation will almost certainly return to Tesla because of its name, the “polarizing” design of the truck and Tesla’s notoriety in the segment.
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The R1S is a slightly harder cracker for Tesla because it has nothing that really matches the design of Rivian’s SUV. The only thing that could divert attention from the R1S is the details about Tesla’s electric van. However, with Cybertruck, Roadster and $ 25,000 vehicle designs already being discussed and delays due to battery restrictions, there is not much hope to hear about the Tesla Van in the near future.
Still, something as simple as rendering or Musk even mentioning the possibility of an electric van will drive the media into a frenzy. It will probably be one of the only things we talked about in the automotive world for several days. While Rivian will launch his R1S, it will have coverage, but Musk and Tesla will have priority, I suppose.
Lucid
Lucid is a company that seems to have the best chance of competing with Tesla in terms of electric car performance. The Lucid Air Dream Edition Limited is one of the leading electric vehicles in terms of performance and has proved this by setting records on the Laguna Seca runway in California. Probably the most sporty electric car since the Model S, the Air has roots at Tesla, as Lucid’s CEO and CTO is Peter Rawlinson, a former Tesla employee who helped design the Model S.
The problem for Lucid is that Tesla has the Roadster coming out in the near future. Lucid has already delayed production due to the pandemic and will not arrive until the end of this year. Tesla has put the Roadster on hold several times, as it is still under development for some meteoric features, such as hovering, which Elon Musk seems determined to discover. While Lucid Air has incredible performance and reach that is impressive in itself, it does not compare to the performance, reach or suspense that Tesla Roadster fans have experienced. Roadster updates are incredibly sought after by enthusiasts, and every little detail is eaten instantly by those who are interested in the vehicle. It is fair to assume that if Lucid announces its initial deliveries of the Air, Tesla will be able to object with an upgrade to the Roadster, large or small.
Not to mention that Tesla could alone take most of Lucid’s appeal with a quick 10-second clip of the Model S Plaid + doing a 400-meter drag. Many people would be interested in the Air’s most robust performance package until they saw the 1.7 second 0-60 MPH of Tesla’s new Model S power train.
Tesla teases Model S Plaid with revamped interior: new touchscreen, Roadster steering wheel and more
Legacy car manufacturers and OEMs
There are many advantages here, and one of the biggest could be Tesla’s introduction of Giga Texas later this year. More than a production plant, this facility was created to be a complete experience. A boardwalk, entertainment, tours, you name it. Giga Texas will be a production unit that puts many of its competitors to sleep simply because of its appeal. It will probably be the most engaging and personal “ride” experience anyone has ever had in a vehicle factory. Who but Tesla to make this happen?
Tesla does not have to do much differently than it has done in recent years to take the momentum away from traditional automakers. Continuing to build revolutionary and highly effective electric cars is all that Tesla needs to do to convince people that it is ahead of traditional car makers on that front. There is no need to change much.
However, Tesla has a lot of work to do in Europe. European EV sales figures are dominated by Volvo, Kia, Renault, BMW and Volkswagen. Tesla still doesn’t have a car in Europe’s Top 20 this year, according to the EV Sales Blog. With Giga Berlin coming later this year, that will certainly change. My guess is that the Model Y hits the Top 5 at most three months after the initial launch of the Giga Berlin, simply due to demand, the crossover body style appeal in Europe and the distinct advantage that Tesla has over older automakers in software terms.
Despite the fall on Wall Street, Tesla still has plenty of time to turn 2021. With the EV sector growing this year, as new manufacturers launch their first products, Tesla has the opportunity to show that it is still capable of competing with young people of the EV industry. Tesla is sure to remain the leader, and that could lead to a simple derailment of the competition, as it has been doing for years.
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