Traditional automakers could face ‘Kodak moment’ if they fail to catch up with Tesla
Traditional automakers are serious about committing to electric vehicles. But do they have what it takes to catch up with Tesla? According to Rob Hull at the UK's This is Money media outlet, "Tesla's ability to continue delivering EVs in 2022 could see it extend its stronghold over the market."
Above: Tesla's Model 3 (Source: Martin Katler)
It's reported that "electric vehicle outputs will see Elon Musk's motor firm mop up the market again this year, according to Fiona Howarth, chief executive at Octopus Electric Vehicles. She says traditional car makers could be facing their 'Kodak moment' if they're unable to react quickly... with Tesla primed to take advantage if they can't."
This 'Kodak moment' for traditional automakers refers to the photo giant's decline when cameras and film were made obsolete by smartphones and digital technologies.
Hull reports, "Demand for battery cars is booming... [and] Tesla's success is a primary result of its vertical business integration. This gives the company a far greater understanding of the components used in its cars... [giving] it an edge over rivals."
This applies to the batteries for electric cars but especially the much-needed (and hard-to-get) chips as the industry moves to a more software-driven approach.
"Tesla has managed to re-write some of the firmware for the chips, so they’re able to access different suppliers compared to other manufacturers. Tesla has managed to ride the challenge of chip shortages and so where demand is outstripping supply across the rest of the market, they are taking advantage," says Howarth.
Can traditional automakers ride out the storm, or will it be too late? Howarth says, "If they are unable to react quickly enough, they risk leaving the door open for newer, more agile, brands."
Above: What happens when people who have never been in a Tesla before get to experience the torque (YouTube: Octopus Electric Vehicles)