German Carmakers Join Race against Tesla

Key German automobile companies such as Mercedes-Benz maker Daimler, BMW and Volkswagen’s Audi and Porsche subsidiaries between them control majority of the worldwide premium car market. However, these companies have offered little competition to Tesla’s electric cars market while these have been on the defensive over an industry-wide diesel emissions scandal. The dynamics battery-powered, zero-emission automobile market is expected to change now as German high-end manufacturers have finally unveiled their first challengers to Tesla.

In September, all the three companies unveiled their first all-electric SUVs slated for release over the next two years. To name a few, BMW rolled out its ‘iNext’, Audi its ‘E-Tron’, Porsche presented its electric coupe, the ‘Mission E’, while Mercedes its ‘EQC’. According to the German Association of the Automotive (VDA) Industry, the German carmakers have vowed a total of around US$ 46.7 billion investment in battery-powered vehicles in the coming three years. Audi owns a market share of around 8% in Germany, whereas Tesla owns 0.1%. According to an official statement by Audi, this month, the company hopes that electric cars are expected to account for around one in three sales by 2025.

The sales of engines powered by diesel have plummeted in the wake of ban in several cities owing to air pollution. Tesla is expected to face stronger competition with the entrance of the three German behemoths into the electric race than Britain’s Jaguar, which is already in the U.K. market with its ‘I-PACE’. Tesla is already facing major hurdles as it is struggling to stem losses that have been going on for years. The CEO Elon Musk was currently in news for drinking whisky and smoking cannabis with radio host Joe Rogan earlier this month. Although, it is legal in California, the company’s shares suffered a hit. Moreover, in an interview with the New York Times, in August, he revealed that he was suffering from intense stress and fatigue. On September 17, Tesla officially stated that the U.S. Department of Justice was investigating the company over Musk’s tweet announcing a plan to remove its shares from the stock market. The article was published in Phys.org on September 23, 2018.

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