Munich, April 2020 | Topic: Automated Driving
WHY TRADITIONAL OEMS SHOULD THOROUGHLY ANALYSE TESLA’S AD STRATEGY.
By now, large parts of the established automotive industry have recognised Tesla’s achievements as a producer of high-quality battery electric vehicles (BEVs). Although it took the newcomer years, and (often appropriate) criticism prevails, it speaks for itself that VW CEO Herbert Diess recently called Tesla a “role model” and that Porsche’s first fully electric model, the Taycan, released in 2019, is constantly benchmarked against Tesla’s Model S – which has been on the market since 2012. And although the company’s current market capitalisation might partly be based on hype, the newcomer currently is the second most valuable car manufacturer in the world, the company’s performance is simply stunning.
But Tesla is much more than just a pioneer for electric vehicles. According to CEO Elon Musk’s second “Master Plan”, a high-level plan depicting the company’s main strategic goals, the next big innovation that Tesla will drive to market is automated driving (AD). Standing in stark contrast to many other OEMs who currently scale back their AD ambitions due to the high associated investments, Elon Musk continues to aggressively push the issue. One strong indication being that Musk recently made AD one of Tesla’s top-priorities, overlooking it personally.
So why should traditional automotive care? Alongside most players in the automotive industry, we at Berylls Strategy Advisors are convinced that AD is a major pillar of future mobility. At the same time, we do recognise the tremendous challenges that still need to be overcome – be they regulatory, technical or societal. While tackling those hurdles requires huge upfront investments, we additionally acknowledge that slowed economic growth in core markets, looming trade wars or the switch to electrification and deepened digitalization leave most traditional automotive players with decreasing financial manoeuvrability. The imperative becomes clear, AD-development must be as cost-efficient as possible while keeping customers safe. The big question is how to solve this conundrum?