It’s becoming clear lately that Tesla’s battery technology is years ahead of the competition. Those who had doubts about the company have been proven wrong. But with many other manufacturers investing heavily into EV development, Tesla will need to work hard to maintain its dominance.
Tesla’s secret to success
It’s so difficult for competitors to gain any ground on Tesla because is that the gap is constantly widening. Tesla has never stopped trying to innovate and improve both its battery technology and the efficiency of its cars.
The Model 3’s 300+ mile range was already practically unbeatable for the price. But they’re still pushing the bar, with a new extended-range mode capable of 350 miles of range on a single charge.
Widening the gap
Other car manufacturers should be scared. Reports have already shown that Tesla’s technology is years ahead of the competition.
But with the Model Y set to deliver in just a few weeks, Tesla is already looking forward. The Model Y is going to put even greater pressure on the competition, as it is set to be the most efficient SUV on the market.
There won’t be a true competitor to the Model Y until later this year. But by the time those reach the market, Tesla will be even further ahead. We are expecting to see a 400-mile range option on the Model S sometime this year. And just as they’ve done with the Model 3, we’ll likely see further improvements made to the Model Y’s range through software.
Tesla is also experimenting with new battery chemistry in their Model 3 in China. These lithium iron phosphate (LFP) batteries are expected to be significantly cheaper than lithium-ion batteries they’ve been using. Tesla really is pushing the efficiency of its cars in every way they can.
And if the competition can’t catch up soon, the estimated 500-mile range of the Cybertruck could put the nail in the coffin. Other manufacturers are investing billions of dollars into EV technology. By the end of this year, there will be more competition in the EV market than we’ve ever seen.
Our take
It seems like every manufacturer has a new electric SUV coming by the end of the year. And many of them, like the new Hummer EV, do have the range to compete with Tesla. I believe 2020 will be a very important year for EVs.
If Tesla can continue to improve at the rate they have been they might be able to hold their lead as EVs go mainstream. But if they slow down this could be the competition’s best shot at breaking Tesla’s dominance.
But with the Model Y coming so soon Tesla has a great head start. If the Model Y is able to dominate, and Tesla continues innovating as they have been, there might be little hope for anyone else to establish themselves in the EV market.
