Tesla EVs - the Only EV Game In Town
If you've listened to the latest news, you've probably heard reports that EV demand is slowing down. It might seem like EVs are still a niche product and that gas cars will dominate forever. To understand this though, you must look at the entire world and the legacy automakers in the United States.
This, however, is not true - at least for Tesla. BYD and possibly Toyota may also fall into this category, but for everyone else, it's going to be an uphill climb to make profitable EVs.
Tesla leads by going first with EVs and them having the courage to take the risk and go bankrupt in the early days is why they are in the primary position to succeed with EVs and autonomous software. Not only that, they are building a humanoid robot, which will one day help humanity reach new heights of labor and manufacturing.
Tesla has taken the lead and built out a vast charging network, and most automakers are now going to use the NACS charging standard for their vehicles. This charger makes so much more sense than a CCS charger. It's smaller, easier to hold, and has less to plug in. Now, if you live outside the U.S., charging is likely different, but here in the U.S., this has been my experience.
The Tesla Model Y is becoming the best-selling car in the entire world, and it is well over $40,000 to buy. Just imagine when Tesla builds their compact car.
You May Also Be Interested In: Jim Cramer says the Cybertruck won't sell even 50,000 units.
The Future Is Brutal for Other EV Makers
"Yes, we are seeing a weakness in EVs of Tesla competitors because they are not competing, and they are just not comparable. The OEM's building those cars are losing horrendous amounts of money."
EVs from other carmakers like Ford and GM are losing tons of money on their EVs. GM has announced they are pushing back their plans for EVs and Ford cutting 12 billion in EV investment.
These other carmakers are "pretending" that there is a weakness in EVs. This is not true, though. There are people who want Tesla vehicles, but just can't afford the price due to high interest rates and a down economy.
The United States is not even at 8% for the EV market. It has a long way to go. The rest of the world and China are growing enormously, however. By 2025-2026, they will reach parity with gas cars. The appetite for EVs is extremely high around the world.
It's just the United States that has people and the news saying there is a weakness in EV demand. The reality is that the other automakers are wishing they could hide their figures on their EV sales. They have to continue to sell their gas cars or their companies will lose even more money. It's the ultimate Innovator's Dilemma.
Tesla is going to sell around 1.8 million EVs by the end of this year. Recently, I wrote about the compact car, which will now be built in Giga Berlin for under $27,000, and when this comes out, look for EV demand for Tesla's to skyrocket. The reason this will happen is the price point. It opens up way more people in its affordability to buy it.
Other automakers are in a tough spot for EVs. They have to build EVs and make that their primary production vehicle eventually, but if they don't do it fast enough, they will go out of business. If they do it fast now, they will lose a ton of money because they aren't experts at making EVs. It's the ultimate catch 22.
In Other Tesla News: Elon Musk Touts Bulletproof Windows Options for Cybertruck.
What do you think about Tesla being the only EV game in town?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot