Discover how Tesla has catapulted the automotive industry into the future with electricity, innovation and digital updates, while the traditional automotive giants are still wallowing in the petrol fog of the past.
There is a battle going on in the automotive industry – a battle not just for market share, but for the future of mobility itself. On one side we have a bunch of titans, car companies that have been forging gasoline-powered steeds for more than a century. On the other side is Tesla, a company that has taken over the world with electricity and digital technology. How did a dwarf become king?!
Elon Musk versus the rest of the world
As Tesla perseveres on the path to an electric future, there are some interesting conclusions to be drawn. Despite the lack of a century of experience in the automotive industry, Tesla quickly established itself as a leader in the field of electric mobility. How is this possible?
Let me start by distinguishing between Tesla and the classic car manufacturers. If the automotive industry were a symphony, the traditional car houses would be conductors who follow closely the score they created decades ago. Tesla, on the other hand, is like a jazz musician, taking a basic melody and changing it, improvising, experimenting.
The rigidity of traditional companies
Rigidity is a word I feel is appropriate when talking about traditional car companies. These organizations are like oil tankers – big, powerful, but also slow and difficult to maneuver. The culture is still based on the principles of mass production and standardization introduced in Henry Ford's time.
Tesla, on the other hand, is as fast and agile as a mountain goat. With digital updates that happen over the air, Tesla allows drivers to experience the feeling of getting a new car every time the software is updated. Classic car brands cannot offer this. Their models are updated slowly, often on multi-year cycles that rely on the release of completely new models.
A culture of innovation
What's more, Tesla has a culture that encourages innovation at every turn. Traditional automakers tend to be stuck in the past, committed to producing the gasoline-powered cars people are used to buying. Tesla, in contrast, is focused on the future and is determined to accelerate the transition to sustainable energy.
So when we look to the future, we see Tesla gaining an edge, not only because of its innovation, but also because of its commitment to rapid change. While traditional car companies continue their journey as if it were a slow marathon, Tesla is running a sprint. It seems clear at this point who will reach the finish line first.
Changing development cycles: When every day becomes a new year for the car
Development cycles are a key point where Tesla and traditional automakers differ greatly. While traditional manufacturers are committed to long development cycles, where a new model is introduced to the market every four years and a completely new generation every eight years, Tesla insists on the path of constant digital updates. At the same time, practically every car series comes off the production line slightly updated.
Think of it as the difference between waiting for a new episode of your favorite TV series every week and streaming the entire season on Netflix as soon as it's available. Traditional manufacturers trick you into promising a future update that won't be until a few years from now, while Tesla offers new updates as soon as they're available, sometimes several times a month. And it's all free!
These continuous development cycles are not only a feature of Tesla cars, but also a reflection of their culture. This is a company that doesn't believe in waiting. When a new technology or improvement is available, they want to deliver it to their customers immediately. This differs from most traditional car manufacturers, where long development cycles are part of their DNA.
This constant updating gives Tesla cars the feeling of always improving. This is something that classic car manufacturers simply cannot offer. Their cars are as good as the day they left the factory, while Tesla is constantly growing and evolving. Each series of cars contains the latest improvements, better cameras, less wiring, new sensors.
When we think about what this means for the future, it's clear that Tesla has a big advantage. While traditional companies are trying to catch up, Tesla is constantly moving forward. No wonder they gained such an advantage.
Will traditional brands survive? Will they be devoured by the Chinese dragon?
Future traditional car brands is somewhat uncertain. With the increasing shift to electric mobility and the constant pressure of climate change, these brands face unique challenges. Nevertheless, they have some key strengths, including a long history, strong brands and an extensive global manufacturing and distribution network.
One of the possible ones scenarios is that these brands will try to adapt quickly, accelerate their transition to electric mobility and digitalization, and adopt more agile development cycles. This is a difficult process that requires a deep transformation of their operational processes and corporate culture.
On the other hand, it could happen that there will be fast-growing Chinese and others startup companies, which cultivates the same culture of innovation as Tesla, has become a major competition. These new players can provide a fresh approach to the automotive industry and are more flexible in adopting new technologies.
In the future, it is possible that some of these startup companies will join forces with traditional car brands or even buy some of these brands. This would allow them to take advantage of the existing production capacity, marketing channels and brands of these companies, while introducing new technologies and innovative business models.
For example, brand, such as Mercedes, BMW and Audi, could benefit from partnering with agile and innovative startup companies to help them transform their operations. Ultimately, the success or failure of traditional automotive brands depends on their ability to adapt and innovate in a rapidly changing automotive environment.
