WAR OF THE EVs
The auto industry, being one of the never stopping, never-ending industries has had its share of changes, improvements and shuffling in all its functioning at the very beginning of the year. The industry is riding high since the visible end of the pandemic and people are investing more and more in it to get the best of the products for themselves. One of the hot topics of the industry, which was boosted by the Elon Musk-owned company, Tesla, was electric vehicles also known as EVs.
Tesla recently won the title of being the industry’s leader in the field of profitability and manufacturing efficiency when Musk made the announcement using the stats of the quarterly earnings of the company. However, there were numerous factors that were brought in the picture that resulted in Tesla getting the same title. The main reasons involved the restructuring of the Nissan-Renault partnership which was a clear indication of both companies trying to get a hold of the running market of the EV segment and the sudden and unexplained change in the leadership of the Japanese multinational automotive, Toyota Motor Corporation.
Although, the news that the companies have declared in their recent pasts, it doesn’t skip the mind of the readers that the timeline of the declaration is extremely close to one another. Akio Toyoda, the former CEO of Toyota stepped down from his position on April 1 just hours after Musk made the declaration of Tesla becoming the world’s best-seller in automaking which has been the position held by Toyota for the past three decades.
The new CEO of Toyota, Koji Sato will have to deal with the changing market head first with the company slipping places on the index. The acceleration of the development of more competitive electric vehicles from the Japanese company comes not only from the threat that Tesla faces but from the Chinese EV manufacturers as well, as they create a firm market for themselves by leading it with the low production prices that they offer.
To put the competition between the auto-markers in numbers, with its high pricing and premium technology, Tesla currently makes 7 times more on each of its vehicles than made by Toyota. The stocks for the company are also skyrocketing as it gained 28% when it opened in 2023.
The extremely active nature of the owner of Tesla also keeps an engaging audience of the company as he makes a good number of announcements through social media which makes the young and upcoming generation intact to the growth of the company. Recently, Musk took to social media to hint about the new vehicle that the company is working on which would sell on profits under $30,000 in the US market. The vehicle would also act as the competition of the mass models of Toyota, Volkswagen and Ford.
Tesla has declared an all-out war with Toyota by getting into all the sectors of the auto industry that were previously dominated by the company. The motto of Tesla’s chief has now been established as ‘reordering the auto industry hierarchy that for decades had Toyota at the top.’