When European drivers were still clinging to diesels and motoring journalists didn't sense the coming revolution, Elon Musk and China were already planning the cars of the future - with only a third of the parts. Is a poor understanding of technology to blame for the decline of the European car industry? Let's see why the EU car industry is in decline.
When you would before ten years who said they would cars of the future composed of only a third of parts, they would probably laugh in his face. But this is exactly what Elon Musk and many Chinese car manufacturers have realized. While European manufacturers have been slow to step into electrification, innovators have already understood that the revolution is not only about changing the fuel. It's about changing the entire system, for eliminating old supply chains, and, most shockingly for many, for cars that will be assembled almost entirely with the help of artificial intelligence and without human labor. This is why the EU car industry is in decline. Because he does not understand changes that are not simply related to the replacement of the energy source.
Tesla and the industrial revolution 2.0
Elon Musk, seen as a character as controversial as he is brilliant, has been emphasizing for years that Tesla is more than just a car company. "It's a software company that happens to make cars," he said. His emphasis on artificial intelligence was no accident - from Autopilot to Robotax, which recently began to take more concrete forms. All this is part of a bigger picture: the cars of the future will not be purely electric, but will be the result of fully automated production based on artificial intelligence.
While they are European manufacturers were thinking about how to improve the efficiency and reduce emissions of their diesel engines, Tesla already manufactured most of their components in-house, which gave them complete control over quality and costs. Vertical integration of Tesla meaning they make all the key parts, from the battery packs to their own autopilot chips, in their own factories. This is the key to faster innovation and lower production costs. Thus, while European manufacturers are still juggling many external suppliers, Tesla is already announcing the arrival of cars that will be almost without human labor.
Europe - latecomer or imminent loser?
Although there are some European manufacturers such as BMW, have begun to invest in the development of robots (for example, with their investment in the company Figure), the question remains whether this will be enough. While Korean manufacturers, which bought Boston Dynamics in 2021, are already using robots to assemble cars, there is still strong resistance to full automation in Europe.
European manufacturers realized that they were no longer competitive just because of their internal combustion engines, but they missed out on key changes in production. The development he brought Elon Musk with Tesla's Gigafactory and their ability to produce huge volumes of vehicles at much lower costs and much faster cycle times means that the European car industry will have to change its methods. But is it already too late?
Automation, artificial intelligence and China - who will win?
When the Chinese entered the market with huge investments in electric vehicles and technologies that enable fully automated production, it became clear that it was no longer a race to build a better car. It's about who will know how to make a car the fastest that can be adapted to the market. China, which is already taking a leading role with its production capacity and access to key battery materials, has understood that the future of motoring lies in full automation.
Chinese companies such as BYD and NIO, began producing cars using similar methods as Tesla, with fully automated factories and vertical integration. They very quickly achieved competitive prices and capabilities that European manufacturers simply cannot match anymore. It is a new era of motoring, in which the classic supplier model has survived.
FSD: a stealth revolution that separates the past from the future
One of the biggest trump cards of Tesla, which European and other global manufacturers find it difficult to catch up with, is Full Self-Driving (FSD) technology. Tesla is the only one to develop this technology completely in-house, using its own chips specially adapted to process complex artificial intelligence algorithms. FSD is not just a feature – it is a turning point that will separate the automotive world into two eras, much like the iPhone replaced previous generations of phones such as flip phones. The question for the future is no longer which car has more horsepower, but: Will you buy a car that can drive itself, or at least offers that option?
It will be in the coming years FSD probably became a key factor in choosing a car, as it will enable completely autonomous driving without the need for human control. With its own chips, Tesla is developing a platform that will turn cars into smart machines that will navigate the roads without any problems, which will mean a revolution in motoring. While European manufacturers are still considering the future of autonomous vehicles, it is Tesla already on the threshold of that, yes FSD becomes the standard. The choice will be easy - either you will choose a car that drives you alone, or your car will be just a memory of the past.
Diesel – a stumbling block or a sign of stubbornness?
Of course, in all this story we cannot overlook the European resistance to electrification. Advocates diesel engines they still insist that electric cars are not the solution, while data on comfort, low maintenance costs and longer service intervals tell a different story. Diesel engines have become a symbol of stubbornness, which does not understand that it is no longer an energy product, but a complete upheaval of the industry.
Conclusion: Europe at a crossroads
To summarize, the European automotive industry faces a choice: adapt to rapid changes in production methods based on artificial intelligence or risk falling behind China and Tesla. Ironically, it is the automotive journalists who have long overlooked the importance of this industrial revolution that are also to blame for Europe not jumping on the bandwagon in time.
