Traditional automakers are transforming their business models to adapt to an all-electric future. General Motors Company GM increased its investment to have a zero tailpipe emission line-up by 2035 with plans to invest $7 billion in electric and autonomous vehicles this year and $27 billion by 2025. Ford Motor Company F will be more than doubling its EV investment by 2025 with $22 billion designated for electric vehicles and $7 billion for autonomous vehicles. The biggest obstacle to electric cars was that they cost much more to build than conventional models. However, the high costs aren't stopping anyone, even smaller players who are going full speed ahead as they try to adapt to an electric future.
Affordability – Chinese Budget Electric Car Takes On Tesla
A budget EV by China's top automaker, state-owned SAIC Motor (selling in China for $4,500) is a top. SAIC Motor is outselling Tesla Inc's TSLA tech savvy cars which do not compare when it comes to affordability. The Hong Guang Mini EV is being built as part of a joint venture with General Motors. Last month, sales were around double those of Tesla, which was questioned this month over safety issues. While the model clearly lags well behind Tesla when it comes to its battery, range and performance, its convenience and low price have made it one of China's bestselling "new-energy" vehicles. The Chinese government offers license plates for free to support EV adoption. In many cities, it can take months and even years to get a license plate for a petrol engine, whereas for EVs it is guaranteed.
Premium – European Carmakers Are Transforming Their Models
Jaguar Land Rover's portfolio will be all-electric by 2025. The British carmaker will launch electric models of its entire Jaguar and Land Rover line-up by 2030, JLR is a smaller company, so instead of focusing on achieving scale, it will re-emphasise Jaguar's credentials as a luxury brand when it goes all-electric to take advantage of its premium positioning. While that makes sense from a marketing point of view, it doesn't make EV-related production costs any less challenging. However, British automakers do not have a choice as the UK plans to ban the sale of new petrol and diesel cars from 2030. German luxury car brand Bentley Motors, owned by Volkswagen WWAGY revealed back in November its range will be fully electric by 2030, so all of Europe is serious about emission-free cars.
Pickups To See The Light Of Day
2021 will also be the year when the world's first electric pickup sees the light of day. The U.S. pickup truck market is now dominated by the Ford F-150, Ram 1500, and Chevy Silverado, with smaller contributions from GMC, Toyota Motor Corp TM, Nissan Motor Co NSANY, and Honda Motor Co HMC. Even Jeep joined the fray last year, as the Jeep Gladiator arrived in the marketplace. But, things are about to change as besides an electric Ford F-150, the market is about to get richer with highly anticipated models from new entrants such as Rivian, Bollinger, Lordstown Motors Corp RIDE, Atlis Motor Vehicles and Hercules Electric Mobility.
Worksport Provides Update On Growing Profitable Private Label Sales
Worksport Ltd WKSP announced today it has shipped over 1,900 covers to its newest U.S based Private Label customer and that the company is in discussions with two New Private Label customers. Private label customers represent national middle-market brands. The #1 accessory of pickups are tonneau covers and Worksport is a well-established manufacturer of both innovative and affordable tonneau covers. But this company is also a game-changer due to its Terra Vis solar system that can also be used independently from pickup trucks, allowing the company to expand its customer market. Worksport received trademark protection in China along with partnering with Atlis and Hercules to configure its ground-breaking technology for its upcoming pickups. Worksport gathered its target funding of over $4 million more than half a year before the end of its Regulation A offering and the orders and deals just confirm the demand for its unique offerings, including its TerraVis Solar Tonneau Cover and COR battery system.
Although Financial Times research shows that EVs will remain significantly more expensive for carmakers to produce than ICE models for at least a decade and affordability is essential for a wider adoption, the market is expanding at a pace that is nothing short of extraordinary. As carmakers fine-tune their production know-how to deliver battery-powered cars which also benefit from a simpler structure and fewer components, costs will go down eventually, and even faster with potential breakthroughs in battery technology.
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