Tesla is ahead of automakers in 3 key categories, tech money manager says
The transportation industry is "going to shift wholesale to electric, and Tesla is ahead of the pack," ARK Invest founder and CEO Catherine Wood says.
Tesla is at a cost advantage over traditional automakers because it produces its own lithium-ion cylindrical batteries, she says.
Tesla has also collected billions of miles worth of data from its customers, which puts it ahead of the competition on research, she says.
A resounding YES!!
The Toyota "lean manufacturing method" has made OEMs weak because they farm everything out to outside suppliers. By "weak" I mean not having the ability to make relative quick design decisions/corrections and reducing costs of said designs. Look at what Audi in particular is/was going through with LG. Part of the delay in the roll out of their "Model X killer", the E-Tron was that LG wanted to re-negotiate the terms of their contract with Audi over the cost of the batteries. LG wanted more money due to an increase in demand. All of these other OEM's are scrambling to set up battery supplier for their respective EV programs. Well there are only what 2 battery suppliers that can handle that amount of production, LG and Samsung.... Then there is the matter of the actual electric motors which none of them know how to build, so that is yet another part they will have to outsource. Then there is the matter of whether or not all of these outsourced EV components will work efficiently and seamlessly together.
The other OEMs are the hares and Tesla is the tortoise plugging away making their own batteries and motors and seats and cars, so on and so on.
Don't forget the SC network!
"Tesla manufactures the basic electric components of the car – the electric motor, the battery pack and the charger – but other parts come from suppliers spread across the U.S., Europe and Asia.
Below is a list of some of the key suppliers for Tesla's manufacturing production, along with the components they supply:
•AGC Automotive: windshields
•Fisher Dynamics: power seats
•Inteva Products: instrument panel
•Modine Manufacturing Co.: battery chiller
•Sika: acoustic dampers
•Stabilus: liftgate gas spring
•ZF Lenksysteme: power steering mechanism
Other suppliers include ADAC, ABC Group, Angell-Demmel, Argent, Gentex, Harada, Hitachi Cable America, Hope Global, MacLean-Fogg, Magna International, Methode Electronics, Multimatic, Panasonic, Plastomer, PSM International, Riviera, T1 Automotive and Zanini Auto Group."
https://www.investopedia dot com
Supercharger network DUH
From what I see: Charging Technology, batteries, User Interface, connectivity, self driving software, self driving big data. It's harder to compare other areas because Tesla isn't at the same scale as other Autos and that could push Tesla toward more traditional methods where some advantages are negated.
Yodrak, Tesla makes the meat of the car. Meaning the stuff that separates it from other cars. No car company makes it own lift gate/hood struts, shock absorbers, instrument panel. The stuff that makes a Tesla, a Tesla, they make themselves.
"The stuff that makes a Tesla, a Tesla, they make themselves."
That's what you should have written the first time. But still, much of what makes a Tesla a car is made by Tesla's suppliers much like all other car manufacturers.
Yodrak, perhaps you are not a “gear head”, car enthusiast, etc. What makes a car what it is, is the engine/drivetrain. It is the heart of the car. No one identifies ANY car by the door panels or the carpeting. It is how it drives which is related to the drivetrain and suspension. Tesla makes it’s own motors and battery packs. While the suspension pieces may be made by an outside supplier, it is their design.
"Tesla is at a cost advantage over traditional automakers because it produces its own lithium-ion cylindrical batteries, [Catherine Wood] says."
"Tesla makes it’s own ... battery packs."
To be clear, Panasonic makes Tesla's batteries, and is Tesla's sole supplier for batteries. Tesla assembles the batteries it buys from Panasonic into the battery packs for the cars.
Tesla specified the chemistry of the batteries to be a unique formulation. It’s likely a patented and co-owned IP between Tesla and Panasonic. No EV car manufacturer has their own battery manufacturing plant, they buy from battery manufacturers.
Yodrak. Like jordan said engine/drivetrain is the heart and soul of a car. Modern auto companies outsource pretty much everything but they all make their own engines and transmissions. That is still the main technology that differentiate brands. Even though most companies can make pretty decent engine and transmission small difference between their technologies still determines who are first tier companies and who are not.
It will be the same when we transition to EV. Not only Tesla has an insurmountable lead in battery/motor/power electronics it also has the most intensive development programs on those while others are still outsourcing theirs. That's probably the most they can or want to do but can't imagine how they could catch up Tesla by that easy and lazy way.
"Tesla has an insurmountable lead in battery/motor/power electronics "
I agree that Tesla has a lead that will last for the foreseeable future, but "insurmountable"? Like the lead that GM had decades ago, until Toyota and Honda made continuous improvement on the cheap little underpowered cars they first entered the US market with?
I'm not going to speculate on how long "foreseeable" is, things can change quickly in the world of technology.
Tesla is making cars with 2.4 second 0-60. The best one from the rest is more than two seconds slower and some are much worse. And all of those cars from Jag or Audi, even with less performance, have way worse efficiency than Tesla's. Watch Sandy Munro's interview you'll find out why. Just imagine an ICE company, especially a supposdly primium ICE company, to survive by selling slow car with lousy mileage and at a significantly higher price. None of those companies would have existed.
And I have not got into the cost yet. That's trade secret for everyone but looking at price they charge and volume they are willing to offer, even when they have income from selling ICE car to supplement it, it could not be clearer that they are way behind Tesla in this respect too. Again the Sandy Munro interview will give you a clue of why that is the case.
They will sure get better but Tesla will move at an even faster speed (for your info Tesla is not GM). No one even know how many things are going on at Tesla we don't know yet but are ready to be released at the right time. It's like your're against the fastest runner in the world which has a large lead. Imsurmountable lead is not an exerggeration.
Is that the money manager that has a $4000 price target on Tesla?
She's not the only one though. Ron Baron has had ~$5000 long term price target for a while now. And that's pretty much Tesla board's goal too when it set Elon's bonus program.