Blog

VW prepares to take on Tesla in electric tug of war


Volkswagen, until recently the world’s second most valuable car company by market cap (it was overtaken by Tesla in Feb 2020) is really preparing to take on Tesla in the electric vehicle arena. 

And why not? 

With electric vehicles being projected as being the dominant road transport technology, why would a 80 year old firm (VW was founded in 1937) allow a company over 60 years younger (Tesla was founded in 2003) to overtake it?

But what exactly should VW do to overtake Tesla both in mind share and market cap?

I think one of the challenges for many companies trying to fight Tesla is that the latter is playing by different rules. If one considers how investors consider Tesla, most of them actually consider Tesla to be a technology company that is converting its expertise to make great transportation solutions. That is, for Tesla, technology comes first and cars next. For most other auto companies, their cars come first and the technology is just supporting their transportation plans and designs.

Is this just a terminological difference – what comes first? To some extent it could be, but in certain aspects, considering oneself as a technology company could result in vastly different solutions and products. That could explain why Tesla is straddling three different sectors at the same time – autos, energy storage and renewable energy (solar). Because it considers itself foremost a technology company, it is able to translate its technical and engineering mindset into sectors that are related though different. Doing something similar will be far more difficult for most other auto companies, including VW.


Categories: Uncategorized

Author - Narasimhan Santhanam


Thank you for reading this post – hope it was helpful. You can connect with me at narsi@eai.in. My detailed profile here and my LinkedIn profile here

Related Posts


About EAI and BioBiz for Bio-CNG

BioBiz for bio-CNG, EAI's specialized consulting division for bio-CNG, provides assistance in market research, strategy consulting, technology vendor/supplier finder assistance and more for the complete bio-CNG value chain – feedstock sourcing, logistics, pre-processing techniques, anaerobic digestion, biogas scrubbing, biogas upgradation, end user markets for bio-CNG and digestate, and more. Send a note to consult@eai.in if you wish to take BioBiz’s assistance for the Indian bio-CNG market.

About EAI & EV Next

EV Next, EAI's specialized consulting division, provides assistance in market research, strategy consulting, technology vendor/supplier finder assistance and more for the complete EV value chain - Li-ion & Lead Acid Battery Cells & Battery Packs, BMS, Battery Manufacturing equipment, EV charging station, battery swapping station, Li-ion & Lead Acid battery recycling, and for a range of electric vehicles - e-bikes, electric bicycles, electric scooters, electric motorbikes, electric autos, e-autos, e-rickshaws, electric trucks, electric LCVs, electric buses and more. Send a note to consult@eai.in if you wish to take EV Next assistance for the Indian electric vehicle market.



Devising Your EV Strategy: White Paper from EAI.


Leave a Comment ( 0 ) →



Leave a Comment

X

Name

Email

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name

//