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BMW, Mercedes, Audi aim to run across Tesla



Last week was a bad one for Tesla (TSLA) and Managing Director Elon Musk, as internal problems threatened to counteract Musk's power and choke the company's business. But now the electric car manufacturer faces several more common problems – this time from the outside.




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A number of major automakers come on the market with all-electric vehicles that boost the pressure on Musk and Tesla. Analysts see performance specifications and pricing that match well with Teslas three vehicles, model S, model X and model 3. These automakers hope to challenge Tesla's current dominance on the electric car market for the first time.

The first to hit the Market is Jaguar I Pace, a product of Tata Motors (TTM), to be followed by Audi e-throne from Volkswagen (VWAGY). Others on the market are Mercedes-Benz EQC from Daimler (DDAIF), BMW (BMWYY) iX3 and Porsche Taycan, also from Volkswagen.

Jaguar is currently selling cars in Europe and plans to make its American debut later this year. The others plan to enter production and reach the market in the next two years.

"It will be interesting to see how this evolves, as these new vehicles hit the market at the same time. Tesla's federal tax credits cease," said Jeremy Acevedo, an analyst at Edmunds.com.

Musk a victim for his own success?

The boom in electric vehicle design and manufacturing is a result of Musk's own phenomenal success. Tesla's success in the all-electric vehicle category led to the car industry jumping. They are now intensively focused on making electric cars like never before. Almost every car company with brand names is in the game. These are companies with decades of experience in the automotive industry.

"They are convincing vehicles and they can safely take market shares from Tesla," says Acevedo.

But how much does Tesla still have to be seen. Tesla's current advantage is first-class brand recognition and a loyal band of fans.

"What Elon Musk could do is catch lightning in a bottle," says Acevedo. "Hundreds of thousands of people make their reservations for their model 3."

Problem is that Tesla can not make them fast enough. The company fought vigorously to reach its goal of producing 5,000 Model 3 sedans per week, with plans to double it. But it is still unclear whether Tesla can make a profit on model 3.

Slammed By Bulls

Many analysts also wonder about Tesla's financial situation. The company had a large operating capital loss at the end of the second quarter. Billions of debt will expire in the next few years.

Even Tesla's most prominent followers become nervous. One of Tesla's biggest bulls recently hit Musk, slashed his prize goal and regretted the CEO's wrong behavior.

That behavior involves a bizarre incident with muscular smoking marijuana and drinking whiskey during a news interview that called alarm clocks about its overall stability. Musk revealed how his myriad executive responsibility has taken a steep personal toll in a new article in the New York Times. He had worked up to 120 hours a week, the split time between Tesla and his rocket ship company SpaceX.

Tesla initially invested Model 3 at a base price of $ 35,000, the first car intended for the mass market. No current model 3s goes to that price. Model 3s currently being delivered are premium versions of the car that sells for much more than that.

Keeps quantity and quality

Can Tesla ramp model 3 and maintain quality?

"Possible but not currently" UBS analyst Colin Langan recently wrote in a note to customers. "While Tesla could ultimately produce Model 3 in a relatively high volume, the production delays challenge the perception that it has invented a superior manufacturing process. In addition, our teardown (of Model 3) highlighted significant quality problems."

Tesla's first car was Model S, a medium-sized luxury car with a base price of 74,500 USD. It followed with Model X, a medium sized, all-electric, luxury, crossover utility vehicle. Model X sells for $ 79,500, but both vehicles usually go a lot more than that with options.

Jaguar I speed compares favorably with model X. It has similar ranges and acceleration, although Model X is larger and has more seats and storage space. But the base price of $ 70,495 is about $ 9,000 under model X.

After I Pace, Audi is e-throne. It is the first fully electric SUV unit from Audi, which begins to start the book this week. The production of the e-throne is already running, but a US sales date is still unavailable. Audi forecasts hit the US market in the first quarter of 2019.

BMW is planning its iX3 SUV debut for 2020. BMW currently takes orders without a price being announced. Mercedes-Benz plans EQC, another all-electric SUV, for a 2020 debut. The market sees prices for both in the same area as Tesla Model X.

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