The Electric Car Rush

As I was reading the news yesterday, a new Porsche prototype has been revealed, the Mission E. An all electric four door supercar targeting Tesla's market. What does it mean exactly? Well we also know that most luxury car manufacturer are now rushing to get long range electric car out the door planning to share Tesla's high-demand market.

For all of those who have been doubting Tesla, we have evidences that Elon Musk was right all along. Tesla has announced a long range fully electric car for $35 000 (Model III) reaching for a mass market vehicle. At this point, it is not a question of if we'll see most of our cars electric but when. The market is clearly ready to buy but simply can't afford a $100 000 Tesla at this time. Meanwhile, Tesla is getting ready for Model III high demand as they are currently building a battery factory in Nevada since they know no supplier will have the capacity to provide the expected  demand for both the Model III and the Powerwall. As Elon doing things the way he's always been doing them with Tesla and SpaceX , he also likes to design and keep everything in house to lower prices and increase efficiency of each component. 

Knowing the above information and Tesla having more order than it's producing capacity for the Model S only, it is easy to understand why other brands are rushing catching up to an untapped market. The million dollar questions is: Will cars become electronic device sine Tesla's are getting better after purchase? This becomes possible through multiple software updates into Tesla's software working the same way as your iPhone. As Tesla is already building a network of superchargers, what will happen to the competition? Will they have to pay a fee to Tesla to recharge other car brands or will each company have to build their own charging stations network? The same questions could be asked for the car charging connector. Will each company have their own system just like Samsung and Apple do with cellphones?

There is no doubt that Tesla has transformed the car industry and is on its way to keep a lot of oil in the ground with solar powered superchargers. Not only saving the planet from extra CO2 emission but also allowing owners to get rid of maintenance costs once and for all. No more oil change, no more pistons, valves, cylinders, spark plugs, exhaust pipe or any of components to replace either but tires. This will also change the car manufacturers business model as the profits have always been generated from maintenance instead of out right sales. It will be interesting to see this industry change drastically in the next 5 to 10 years as I am personally exited to finally watch an old well established industry getting lessoned by a Silicon Valley start-up.