When it comes to great rivalries, especially in the production market, automobile manufacturers never miss out. It is remarkable how Tesla’s entrance in the electric car production has set commotion and rumbles within the automobile industry. As witnessed in the release of the Model X and S, Tesla has made headlines that prompt other competitors to put their best foot forward. Why do I say so? Well with the approaching of the final production of Tesla Model 3, set for July, rivals such as Nissan and Toyota are reacting differently with several teasers being released. This move is evident as various companies’ plans out to edge out fellow competitors in the production of all-electric cars. Here are some of the headliners.
GM intent to produce profitable EVs
Their strategy is quite simple; make high-profit vehicles that are affordable and desirable to the customers. While speaking at the 1st quarter earnings for GM, CEO Mary Barra hinted the company’s move to reduce its cost per kilowatts hour for electric battery cells to $145 from the current price of $200. This is not the end of the reduction as Mark Reuss, Head of global product development in General Motors, explained their company’s motive to lower the prices to $100 by the year 2022. That’s the seriousness GM portrays in becoming the crème in electronic transportation.
2018 Nissan Leaf
Apart from being the first pocket-friendly electric car, the 2018 Nissan Leaf expects to top the list in the coming years. This implies that the model needs to remain relevant in the mass market of EVs production against close rivals such as Tesla Model 3. A single headlight has been used as a show teaser for the 2018 Nissan Leaf with several spy shots been hovered around in the past few months.
Fanatics should expect a global rollout of the new model in the coming months. Nevertheless, major improvements are expected to feature in the 2018 leaf as it tries to increase the current mileage of 107 miles. This is no mean task as other compatriots have electric cars that run up to 215- 240 miles.
Toyota’s CEO weighs in on the matter
For a fact, CEO Akio Toyoda could not hide his disappointment after being presented with the all-electric Toyota 86. “It’s an electric car,” he said following an interview with the Automotive news.
This no surprise as the company had previously made it public that they have no intentions of producing all-electric cars. Mr. Akio went ahead to explain that all EVs produced have the same acceleration thus no reason to make the cars a commodity. When asked about his take on Tesla, the CEO explains that the two companies are simply producing cars but compares Tesla to mobile makers iPhone in terms of connectivity as the latter provides this. Well, I guess Tesla have something to smile about with the exclusion of Toyota company in the EVs mass- market.
Tesla expected to break even at $41,000 on Model 3
The report is based on a cost analysis done by UBS of the Chevy Bolt. The firm estimates that Tesla Model 3 requires the car to achieve a market price of $41,000 so as to break even at the EBIT level. Well, this after a difference of $6,000 from the initial base price of 35,000. Speculations are high on the company’s ability to meet this margin. This has been marked with various reports such as the Electrek view that stipulate the company’s need to hit the $41,000 margin so as to meet the customer’s expectation of a new self- driving machine on the roads. The report further indicates that it strongly believes in Tesla’s capability to beat this mark.
It is interesting to see how the latest reports on Tesla Model 3 Week unveil and different reactions by other EVs producers especially with Nissan’s ability to stay up front in the all- electric car mass market. I am also keen to follow on Toyota’s word on its move of not producing electric cars and their plan with the Toyota 89. I lay to rest on the matter by emphasizing on the need to watch out for any expected changes in the trend set out by EV manufacturers especially after the release of Tesla Model 3 in July.