Traditional automakers could face a 'Kodak moment' if they fail to catch up with Tesla

Posted on
March 08, 2022
By
Matt Pressman

Traditional automakers are serious about electric vehicles. But do they have what it takes to catch up with Tesla? According to Rob Hull in the UK’s This Is Money media outlet, “Tesla’s ability to continue delivering EVs into 2022 could see it expand its stronghold on the market.”

Above: Tesla’s Model 3 (Source: Martin Kettler)

It has been reported that “electric vehicle output will see Elon Musk’s motor firm hit the market again this year, according to Fiona Howarth, chief executive of Octopus Electric Vehicles.” He says the traditional carmaker is facing its ‘Kodak moment. If they are unable to react quickly … with Tesla willing to take advantage if they can’t.”

This ‘Kodak moment’ for traditional automakers refers to the decline of the photo giant when cameras and film were made obsolete by smartphones and digital technologies.

Hull report”The demand for battery cars is increasing rapidly… [and] Tesla’s success is a primary result of its vertical business integration. This gives the company a better understanding of the parts used in its cars. [giving] It has an edge over the rivals.”

Above: Tesla dominates both EV inquiries and EV deliveries, according to UK’s Octopus Electric Vehicles (Source: This is Money Through octopus electric vehicle)

This applies to batteries for electric cars, but especially much-needed (and hard-to-get) chips, as the industry moves toward a more software-driven approach.

“Tesla has managed to rewrite some of the firmware for the chips, so they are able to reach different suppliers than other manufacturers. Tesla has managed to meet the challenge of chip shortages and therefore where demand rests. There’s an excess of supply in the market, they’re taking advantage of,” Howarth says.

Can traditional automakers ride out the storm, or will it be too late? “If they are unable to react quickly, they risk leaving the door open for new, more agile, brands,” Howarth says.

Video

Above: What happens when people who have never been in a Tesla before experience torque (YouTube: Octopus Electric Vehicles)

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Source: It’s Money; octopus electric vehicle

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