Hi everybody, and welcome back to another episode of the Elon
Musk Podcast. Today, we're turning our focus
to the world of electric vehicles, with an emphasis on
European automakers. The IAA Motor show in Munich was
a hotbed of activity featuring the grand unveilings of electric
concept cars from BMW and Mercedes-Benz.
Both German giants are making massive strides to ensure they
don't lag behind in the global EV market that's dominated by
Tesla in emerging Chinese companies.
But before we get into the nitty gritty of these unveilings and
what they signify for the automotive sector, and before we
get into the nitty gritty of these unveilings and what they
signify for the automotive sector, let me quickly remind
you that today's episode is brought to you by
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Make sure to check them out. Now let's start with BMW's grand
reveal. At the IAA Mobility Motor Show
in Munich, BMW showcased its electric concept car named the
Vision New Claus. Now this car is expected to be
the harbinger of a new era for BMW, built on a new
architectural foundation that will serve as the blueprint for
all its future Ev's. Oliver Zipped, the CEO of BMW,
shared that they're planning to double their EV sales this year.
We also estimated that by the end of 2023, battery Ev's will
comprise 15% of BMW's global sales.
For a brand steeped in a history of internal combustion engines,
that's a very significant pivot. Now, Mercedes-Benz wasn't far
behind either. They unveiled their concepts CLA
Class, another electric vehicle designed from the ground up to
serve as a cornerstone for their future electric offerings.
Their CEO was all praised for the car, claiming that its specs
are unparalleled in its class. It boasts an impressive range of
750 kilometers and a quick charge feature that can juice up
the car to run 400 kilometers in just 15 minutes.
If that doesn't show their ambition in the EV sector, I
don't really know what could, and the introduction of
dedicated EV platforms for BMW and Mercedes marks a significant
departure from their previous strategies.
Earlier, they would retrofit their existing combustion or
hybrid vehicles to accommodate the batteries, but with these
new reveals, they're setting up a dedicated assembly line for
EV's. It's a very serious commitment,
but despite these efforts and lists of pine that both Mercedes
and BMW have a mountain to climb to catch up the Tesla, let alone
to dominate this sector. Now a senior research analyst at
Bernstein Research, Daniel Roska, pointed out that while
these new platforms are a step forward, they may not completely
close the gap with Tesla and the competitive Chinese players.
And Speaking of competition, price wars are becoming
increasingly common the EV market.
Tesla has been aggressive with its pricing strategy, which puts
additional pressure on premium market players like BMW and
Mercedes. Now Collinius from Mercedes
emphasize that they aren't aiming to push volume, but are
focusing on value over volume. This could be a significant
differentiator in a market where many players, including Tesla,
are fighting fiercely for market share.
Now Volkswagen is also in the race with unique strategy.
They plan to target various market segments by offering cars
at different price points, and with the announcement of
launching 11 new EV models by 2027, they're definitely not
holding back. While these vehicles themselves
are impressive, the real differentiator in the EV sector
seems to be technology. Tesla software capabilities,
especially with Autopilot, have set a high standard, but
European automakers are catching up.
BMW, for example, is touting its head up display that projects
information out of the driver's windshield.
Now, Zips also highlighted their significant investment in
digital aspects, including semiconductors.
So the electric vehicle market is getting more and more
crowded. It's no longer just Tesla and
the Chinese companies like BYD. But why is this happening?
One reason could be the growing consumer awareness about
environmental issues. And as the climate crisis
intensifies, people are increasingly considering
sustainable modes of transportation, thereby driving
up the demand for Ev's. And governments around the globe
are also implementing stringent emission regulations, forcing
automakers to pivot to more eco friendly technologies.
Now BMW and Mercedes-Benz in particular have historically
been associated with luxury, performance and engineering
excellence. But they also recognize the
urgent need for sustainability and are taking big strides to
make their fleet more eco friendly.
This urgency is partly due to market demand, but it's also
because the competition is fierce in not waiting for them
to catch up. BMW is offering a concept car
that aims to set the stage for a brand new lineup for their EVs
and they plan to introduce it over the next few years.
And according to BMW CEO, this framework is such a huge game
changer. It's not about creating another
electric car, it's about shifting the very core of what
BMW represents as a brand. They're not only electrifying
their vehicles, but they're also reimagining how these cars will
interact with the drivers and with the environment and other
vehicles. The user experience is expected
to be significantly augmented by digital features, aiming to make
driving more intuitive and also enjoyable.
And on the flip side, Mercedes-Benz Concept CLA class
offers not just an electric vehicle, but a feat of
engineering that pushes the boundaries of what Ev's can do.
750 kilometer range is impressive, or really what
caught everyone's attention was its rapid charging capabilities.
15 minutes for 400 kilometers is something that even Tesla hasn't
achieved in their consumer models, and if you can bring
this from a concept to an actual car available in the market,
that would represent a massive leap in EV technology.
Now let's talk about some of the challenges they faced.
First off, the issue of battery technology and sourcing lithium
ion batteries are at the heart of all Ev's right now, and
securing a steady, sustainable supply of these materials is a
logistical and ethical challenge.
Companies are racing to find alternative materials or improve
the efficiency of existing ones. This is where Tesla has an
advantage with its Gigafactories and plans to manufacture its own
batteries. Whether BMW and Mercedes can
catch up on this front, it's something to keep an eye on.
Another challenge? Infrastructure.
Europe does have a growing network of charging stations,
but it's not yet an extensive network like it is in the US,
and it needs to be a bigger market to support a mass
adoption of electric vehicles. Now both BMW and Mercedes will
need to consider how their cars will fit into the existing
infrastructure, or what steps they could take to expand it or
make their own. And let's not forget about the
emerging competition from China. Companies like NEO and Sbegg and
BYD are not just content with conquering the domestic market.
They have global ambitions that are slowly but steadily entering
European and North American markets.
With often lower price models and impressive tech features.
These companies are set to give the traditional European
automakers a run for their money.
Meanwhile, VW and Audi are also stepping up their game.
VW has made it clear that they intend to cater to various
segments of the market, providing options for every type
of consumer, and the versatility in their approach can make them
a formidable competitor to both BMW and Mercedes.
Now we have to remember again Tesla's Autopilot Tesla
software, the hardware that drives that software.
It set a standard for autonomous driving features.
And how will BMW and Mercedes compete on them?
They're working on it, but as mentioned earlier, BMW is
investing heavily in digital features, semiconductors, which
can significantly enhance vehicle performance and
experience. And these moves by BMW and
Mercedes-Benz are not mere incremental steps in the realm
of EVs. They signify a wholesale
commitment to the future that's electric.
And while these are challenges and there's stiff competition
out there, their willingness to invest, innovate and adapt
speaks volumes about the resilience and vision of these
iconic brands. Thank you so much for tuning
into the show today. I hope you found this discussion
insightful and also entertaining.
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Until next time, carry yourselves in each other and
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