Tesla, Inc. (NASDAQ: TSLA) CEO Elon Musk invariably generates hype with his tweets, which are often cryptic.
On Monday, Musk responded directly to a Twitter user comment about the growing competition in EV production.
What happened: A Twitter user referred to several tech companies looking to build electric vehicles, and Musk responded simply and logically:
Prototypes are easy, production is difficult.
– Elon Musk (@elonmusk) May 3, 2021
Why is it important: Most analysts suggest that the electric vehicle market is likely to grow exponentially as electric vehicle penetration rises above the current single-digit percentage.
Related link: Where does Tesla’s profit come from? (Hint: these are not cars)
As EV production now relies on technologies used in batteries and associated charging infrastructure and autonomous driver assistance systems, several tech companies have announced plans to go to market as well.
Tech giant Apple, Inc. (NASDAQ: AAPL) There have been long speculation about this announcement, and there have even been rumors of partnerships with contract manufacturers and traditional automakers.
Cupertino did not say anything specific about this.
Smartphone manufacturer Xiaomi corporation (OTC: XIACF) has confirmed its plan to take part in the raid, and so has the Chinese search engine Huawei. Baidu, Inc. (NASDAQ: BIDU) and the Japanese electronics giant Sony Group Corporation (NYSE: SONY).
Petrol’s commentary: As Musk mentioned, expanding production is a very different game, especially for companies that have little experience in car manufacturing. The smartest strategy is to tie carmakers to their plan and work alone when they have the right infrastructure and expertise. Related link: Tesla Selects Mumbai as First Office and Showroom in India: Report
Photo courtesy of Tesla.
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