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Hi everybody, and welcome back 
to another episode of the Elon 

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Musk Podcast. 
Today, we're turning our focus 

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to the world of electric 
vehicles, with an emphasis on 

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European automakers. 
The IAA Motor show in Munich was

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a hotbed of activity featuring 
the grand unveilings of electric

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concept cars from BMW and 
Mercedes-Benz. 

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Both German giants are making 
massive strides to ensure they 

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don't lag behind in the global 
EV market that's dominated by 

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Tesla in emerging Chinese 
companies. 

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But before we get into the nitty
gritty of these unveilings and 

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what they signify for the 
automotive sector, and before we

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get into the nitty gritty of 
these unveilings and what they 

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signify for the automotive 
sector, let me quickly remind 

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Now let's start with BMW's grand

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reveal. 
At the IAA Mobility Motor Show 

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in Munich, BMW showcased its 
electric concept car named the 

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Vision New Claus. 
Now this car is expected to be 

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the harbinger of a new era for 
BMW, built on a new 

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architectural foundation that 
will serve as the blueprint for 

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all its future Ev's. 
Oliver Zipped, the CEO of BMW, 

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shared that they're planning to 
double their EV sales this year.

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We also estimated that by the 
end of 2023, battery Ev's will 

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comprise 15% of BMW's global 
sales. 

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For a brand steeped in a history
of internal combustion engines, 

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that's a very significant pivot.
Now, Mercedes-Benz wasn't far 

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behind either. 
They unveiled their concepts CLA

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Class, another electric vehicle 
designed from the ground up to 

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serve as a cornerstone for their
future electric offerings. 

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Their CEO was all praised for 
the car, claiming that its specs

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are unparalleled in its class. 
It boasts an impressive range of

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750 kilometers and a quick 
charge feature that can juice up

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the car to run 400 kilometers in
just 15 minutes. 

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If that doesn't show their 
ambition in the EV sector, I 

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don't really know what could, 
and the introduction of 

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dedicated EV platforms for BMW 
and Mercedes marks a significant

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departure from their previous 
strategies. 

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Earlier, they would retrofit 
their existing combustion or 

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hybrid vehicles to accommodate 
the batteries, but with these 

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new reveals, they're setting up 
a dedicated assembly line for 

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EV's. 
It's a very serious commitment, 

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but despite these efforts and 
lists of pine that both Mercedes

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and BMW have a mountain to climb
to catch up the Tesla, let alone

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to dominate this sector. 
Now a senior research analyst at

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Bernstein Research, Daniel 
Roska, pointed out that while 

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these new platforms are a step 
forward, they may not completely

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close the gap with Tesla and the
competitive Chinese players. 

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And Speaking of competition, 
price wars are becoming 

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increasingly common the EV 
market. 

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Tesla has been aggressive with 
its pricing strategy, which puts

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additional pressure on premium 
market players like BMW and 

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Mercedes. 
Now Collinius from Mercedes 

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emphasize that they aren't 
aiming to push volume, but are 

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focusing on value over volume. 
This could be a significant 

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differentiator in a market where
many players, including Tesla, 

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are fighting fiercely for market
share. 

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Now Volkswagen is also in the 
race with unique strategy. 

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They plan to target various 
market segments by offering cars

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at different price points, and 
with the announcement of 

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launching 11 new EV models by 
2027, they're definitely not 

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holding back. 
While these vehicles themselves 

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are impressive, the real 
differentiator in the EV sector 

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seems to be technology. 
Tesla software capabilities, 

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especially with Autopilot, have 
set a high standard, but 

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European automakers are catching
up. 

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BMW, for example, is touting its
head up display that projects 

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information out of the driver's 
windshield. 

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Now, Zips also highlighted their
significant investment in 

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digital aspects, including 
semiconductors. 

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So the electric vehicle market 
is getting more and more 

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crowded. 
It's no longer just Tesla and 

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the Chinese companies like BYD. 
But why is this happening? 

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One reason could be the growing 
consumer awareness about 

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environmental issues. 
And as the climate crisis 

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intensifies, people are 
increasingly considering 

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sustainable modes of 
transportation, thereby driving 

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up the demand for Ev's. 
And governments around the globe

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are also implementing stringent 
emission regulations, forcing 

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automakers to pivot to more eco 
friendly technologies. 

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Now BMW and Mercedes-Benz in 
particular have historically 

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been associated with luxury, 
performance and engineering 

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excellence. 
But they also recognize the 

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urgent need for sustainability 
and are taking big strides to 

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make their fleet more eco 
friendly. 

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This urgency is partly due to 
market demand, but it's also 

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because the competition is 
fierce in not waiting for them 

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to catch up. 
BMW is offering a concept car 

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that aims to set the stage for a
brand new lineup for their EVs 

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and they plan to introduce it 
over the next few years. 

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And according to BMW CEO, this 
framework is such a huge game 

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changer. 
It's not about creating another 

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electric car, it's about 
shifting the very core of what 

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BMW represents as a brand. 
They're not only electrifying 

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their vehicles, but they're also
reimagining how these cars will 

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interact with the drivers and 
with the environment and other 

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vehicles. 
The user experience is expected 

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to be significantly augmented by
digital features, aiming to make

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driving more intuitive and also 
enjoyable. 

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And on the flip side, 
Mercedes-Benz Concept CLA class 

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offers not just an electric 
vehicle, but a feat of 

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engineering that pushes the 
boundaries of what Ev's can do. 

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750 kilometer range is 
impressive, or really what 

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caught everyone's attention was 
its rapid charging capabilities.

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15 minutes for 400 kilometers is
something that even Tesla hasn't

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achieved in their consumer 
models, and if you can bring 

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this from a concept to an actual
car available in the market, 

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that would represent a massive 
leap in EV technology. 

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Now let's talk about some of the
challenges they faced. 

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First off, the issue of battery 
technology and sourcing lithium 

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ion batteries are at the heart 
of all Ev's right now, and 

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securing a steady, sustainable 
supply of these materials is a 

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logistical and ethical 
challenge. 

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Companies are racing to find 
alternative materials or improve

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the efficiency of existing ones.
This is where Tesla has an 

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advantage with its Gigafactories
and plans to manufacture its own

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batteries. 
Whether BMW and Mercedes can 

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catch up on this front, it's 
something to keep an eye on. 

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Another challenge? 
Infrastructure. 

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Europe does have a growing 
network of charging stations, 

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but it's not yet an extensive 
network like it is in the US, 

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and it needs to be a bigger 
market to support a mass 

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adoption of electric vehicles. 
Now both BMW and Mercedes will 

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need to consider how their cars 
will fit into the existing 

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infrastructure, or what steps 
they could take to expand it or 

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make their own. 
And let's not forget about the 

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emerging competition from China.
Companies like NEO and Sbegg and

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BYD are not just content with 
conquering the domestic market. 

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They have global ambitions that 
are slowly but steadily entering

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European and North American 
markets. 

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With often lower price models 
and impressive tech features. 

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These companies are set to give 
the traditional European 

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automakers a run for their 
money. 

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Meanwhile, VW and Audi are also 
stepping up their game. 

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VW has made it clear that they 
intend to cater to various 

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segments of the market, 
providing options for every type

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of consumer, and the versatility
in their approach can make them 

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a formidable competitor to both 
BMW and Mercedes. 

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Now we have to remember again 
Tesla's Autopilot Tesla 

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software, the hardware that 
drives that software. 

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It set a standard for autonomous
driving features. 

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And how will BMW and Mercedes 
compete on them? 

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They're working on it, but as 
mentioned earlier, BMW is 

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investing heavily in digital 
features, semiconductors, which 

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can significantly enhance 
vehicle performance and 

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experience. 
And these moves by BMW and 

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Mercedes-Benz are not mere 
incremental steps in the realm 

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of EVs. 
They signify a wholesale 

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commitment to the future that's 
electric. 

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And while these are challenges 
and there's stiff competition 

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out there, their willingness to 
invest, innovate and adapt 

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speaks volumes about the 
resilience and vision of these 

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iconic brands. 
Thank you so much for tuning 

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into the show today. 
I hope you found this discussion

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insightful and also 
entertaining. 

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And if you did, if you enjoyed 
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subscribe or follow button on 
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Until next time, carry 
yourselves in each other and 

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I'll see you in the next one.