The rise of Tesla & why they hold the reigns of the EV revolution (Part 1)
In times like these, it is our response and unity that help societies overcome the challenge we are all facing on a global scale. The corona-virus has swept through our cities, lives and businesses at a rapid pace and most (if not all) countries are at a virtual standstill. Technology and Digital companies are stepping in to assist governments through their production capabilities and knowledge and Tesla is one of those companies.
Only a few days ago – and as the pandemic is slowly reaching its’ peak in the US -, Elon Musk, Tesla’s CEO and major shareholder tweeted that they would resume creating ventilators to urgently assist the situation in any way they can. To some this may seem like a potential PR move but, that is very far from the truth…
Tesla, Inc., was founded in 2003 by a group of engineers with effectively, one primary goal: To accelerate the world’s transition to sustainable energy”. Martin Eberhart and Marc Tarpenning are inspired to reduce the worlds’ reliance of Middle Eastern fuel to help combat climate change. This made them look into alternative options including hydrogen and electric cars.
As the company quickly developed, their founder rapidly discovered the opportunities available in the EV market and started developing his “Master Plan” to transforming the automotive market. That plan was focused on expediting a global move from a “mine-and-burn hydrocarbon economy” towards one that is “solar electric” by making “an electric car company without compromises”.
They are now recognised worldwide as a pioneering electric vehicle and clean energy company that effectively believe that the faster the world moves towards a zero-emission future and stops using fossil fuel, the better.
In the past few months there have been many discussions regarding Tesla’s capabilities, actual valuation and the overall rise of electrification. So, let’s take a closer look as to why a company Like Tesla has managed to revolutionise the market. Those are usually reliant on 3 factors. The Rise of the EV market, Tesla’s expertise and experience as a pioneer in the market and company’s strategy to create ecosystems that allows them to control and expand their market.
The Rise of the EV Market
Last year, for the first time ever, global sales of new electric vehicles passed a million units which constitutes a 5% of the global car industry sales. Pure electric vehicles (BEVs) currently make up 66 percent of the global EV market and governments worldwide are steadily changing their attitudes offering unique incentives for automakers and their customers.
According to ResearchAndMarkets.com the global electric vehicle component market is projeted to reach $157.4 billion by 2025 from $22.2 billion in 2018 at a compound annual growth rate (CAGR) of 29.4 per cent during the the forecast period of 2019 to 2024.
“The market is witnessing growth because of the rising adoption of EV and declining cost of the components used in them. On the basis of end-use, the market is bifurcated into original equipment manufacturers (OEM) and aftermarket, among which, the larger demand for electric vehicle components was created by the OEMs division in 2018,” the report said..and Tesla have had a major part to play in this market swift.
One of the biggest advantages for Tesla in the market is their Hardware 3 software. It is an integrated central control unit, or “full self-driving computer.” Tesla’s Full Self-Driving computer features a custom design that makes the unit optimized for autonomous driving applications. At the core of “Hardware 3” are two 260 sq mm AI chips, which were developed by Tesla with the help of legendary chip designer and Apple alumni Pete Bannon. The “SuperComputer” enables the vehicle or device to sustain enough computing power to handle large amounts of data, hence benefiting autonomous vehicles enormously.
Full self-driven vehicles have rapidly entered our lives and if the experts’ estimate of their broader introduction by 2025 becomes reality, Tesla will have already beaten its more experienced competitors by at least 6 years.
This kind of electronic platform, with a powerful computer at its core, holds the key to handling heavy data loads in tomorrow’s smarter, more autonomous cars. Industry insiders expect such technology to take hold around 2025 at the earliest….
Part 2 ….to be continued!
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