Tesla Inc stands to secure the better part of $7 trillion a year. Although, this can only happen if all goes well for the company. Research by Strategy Analytics predicts the autonomous driving market will be worth $7 trillion annually by 2050. That spells great news for Elon Musk and his very young, electric car business. The company just reiterated its position as the best EV maker around. Tesla announced the official arrival of Enhanced Autopilot this week — another forward leap for its autonomous driving protects. However, investors and market watchers can’t ignore the budding rivals cropping up everywhere. Each comes with deeper pockets and eager to outdo the rest. So, just how safe is Tesla’s rule over the market of autonomous driving?
Tesla avidly sells the future of the auto industry today and worked tirelessly to make safe self-driving cars a reality. This afforded the company a massive head-start over other automakers and tech giants that are only now catching on. The week reveals just far ahead the car company is from its competitors. Couple the latest Autopilot announcement with Stategy Analytics’ findings, and you get an automaker poised to make trillions a year in decades to come.
Strategic Analytics calls it the “Passenger Economy”. It is coined by Intel and refers to the emerging and fast-growing market of automotive autonomy, or self-driving cars. The likes of Uber, Google, Apple and Tesla, of course, help put this market in the spotlight. Research shows that the rise of vehicle autonomy will make driving more service-based and less dependent on end-product car purchases.
The success of Uber and Lyft hints at an incoming generational change in how people see transportation. “Ironically, carmakers have turned to offering these same car-sharing and ad hoc use applications to drive up utilization rates,” the study points out. Urbanization, cost saving and time-efficiency will ultimately make people and businesses love the conveniences offered by the passenger economy
The efforts dedicated to autonomous driving technology and services will see the new Passenger Economy pull in $7 trillion per year by 2050. It is truly a long way off, but the auto industry has always been a long-term. Companies like Tesla and Uber promise to lead the revolution for now, but how well-off will they be in years to come, as bigger and richer rivals join the market.
There is no denying that Tesla holds a formidable lead in the electric vehicle market. That gap can only widen with the every man’s Model 3 about to roll out. This week, the company pointed out that is not only a great player in the EV market, but has much of the autonomous driving space in the bag too.
Tesla pushes autonomous driving
Tesla Inc just launched the latest edition of Autopilot. Drivers are offered a host of new safety and detection features with the upgrade. These include Auto Lane Change, Parallel and Perpendicular Autopark, Summon Autosteer and Traffic-Aware Cruise Control. Features like Forward and Side Collision Warning, “and more advanced safety features” also come standard with the upgrade.
Tesla reminded its users that ever one of its cars is equipped with the hardware needed for complete vehicle autonomy. The safety level remains “greater than that of a human driver”, the company stated.
While Elon Musk and his car company aren’t the the only ones pushing vehicle autonomy, Tesla remains distinct among the hoard of emerging rivals. The company offers a recognized self-driving product that already widely used and constantly innovated. That innovation, from the user end-point, is often as simple as accepting an over-the-air software update. All this puts the young and ambitious carmaker in a great position, set to secure much of the incoming trillions heading for the self-driving car scene.
That said, market competition can never be ignored and Tesla is in no position to fend off players with deeper pockets. If it isn’t already common knowledge, then in should be pointed out that Tesla burns through cash like very few other businesses. Sure, it can be argued that the company is laying the foundation and infrastructure for what promises to be a thriving business. Yet the fact remains; Tesla is not as well funded as Uber, Le Eco, and Faraday Future. All these are gunning the top spot, with deep pockets funding their success.
A direct jab at Tesla
The design brains behind the Aston Martin DB9, as well as the BMW Z8, recently showcased his Tesla rival. Henrik Fisker held the car market’s attention when he revealed the Fisker EMotion. The concept car promises to demolish Tesla vehicles. However, it is clearly still a long way off. The EMotion will cover more than 400 miles on a single charge, fully power up within nine minutes and offer autonomous driving.
This next vehicle will be direct jab at Elon Musk and his cars, Fisker admitted. The EV market only has one formidable player, “and it’s Tesla.”
Sure, the number of Tesla competitors out there are many. More businesses are yet to arrive too, keen on getting on the self-driving car market. Reliable electric cars that can navigate by themselves are the future of the auto industry, it seems. Henry Fisker says his newest unveiling will be a lot more distinct, though. The most alluring and unique aspect of his Fisker EMotion will be its capacity to charge under ten minutes. Ditching lithium-ion for super-capacitors of graphene will make this possible.
Car companies are clearly going out of their way to prove themselves. Tesla Inc. remains at the top for now with every opportunity to hold onto its advantage. Yet the Elon Musk company is also in a very delicate position. Since $7 trillion is up for grabs, the market can expects tons of new well-funded rivals to disrupt the market and steal its favor. Only the succeeding decades will reveal how the company’s actions will weigh on its market position.
For now, we look forward to seeing Tesla’s incoming autonomous semi-truck concept, set to be unveiled this spring.