According to an article recently published on Reuters, Faraday Future, a rival of Tesla Motors Inc , has been given approval to test self-driving cars on the roads of California. On the 17th of June, the news was confirmed by a spokesperson from the California Department of Motor Vehicles. The firm is based in Los Angeles, & has received a lot of funding from Chinese investors. Faraday Future began operating in 2014, & it is speculated that they will test their prototype self-driving car later this year (in the state of California.)
Like Tesla, both companies are designers, developers & manufacturers of electric vehicles, & they are both based in the state of California. On the 31/03/2016, Tesla Motors Inc unveiled its first mass market car, called the Model 3. Within less than 2 months, nearly 400,000 potential buyers had paid a $1,000 reservation fee. Unlike many of the firm’s other electric vehicles, the Model 3 is relatively affordable (with a starting price of just $35,000.) It is believed that the first Model 3 electric cars will be delivered towards the end of 2017, although Tesla does have a history of missing deadlines.
Faraday Future Plans to Start Production & Sales in 2017
The start-up plans to begin producing & selling electric vehicles in the United States of America (USA) in 2017, but it has not given details on its self-driving program, which is comparable to the autopilot system that features on many of Tesla Motors Inc’s automobiles. Faraday Future is not a publicly traded company, & it currently employs around 750 workers.
Tesla Motors Inc Could Face Increasing Levels of Competition in EV Market
The Reuters article read “Faraday is one of several Chinese-funded start-ups hoping to challenge the firm in premium electric vehicles. Like Tesla, Faraday also hopes to add self-driving capability to its vehicles, but has not provided a timetable. Faraday has been testing prototype vehicles for the past year at private facilities, according to the source familiar with the company’s program.”
The extract above suggests that the electric car market is becoming increasingly competitive, with many innovative U.S. based firms attempting to penetrate the market in the near future. Tesla Motors Inc may also face competition from established auto manufacturers (in April 2016, the CEO of Fiat Chrysler Automobiles , Sergio Marchionne said “If he can show me that it can be done, I will do it as well, copy him, add Italian style to it and put it on the market within 12 months.”)
As the markets closed on the 21/06/2016, a share in Tesla Motors Inc was trading at $219.61, giving the firm a market capitalization of $32.67 billion.