Tesla, Inc. (NASDAQ:TSLA) scored Germany’s attention this week. On Saturday, the German chancellor’s head of staff urged the auto industry to dedicate more resources toward electric cars. The company to beat? You guessed it: Tesla.
Peter Altmaier was wondering about the country’s leading automakers and when they planned to outdo Elon Musk’s electric cars. “When is our automobile industry, which is so good, actually going to be in a position to build a car that travels 50 kilometers further than a Tesla and costs 10,000 euros less?” he asked. Altmaier strongly believes that the German auto scene is capable of this. “It must be possible to set this as a goal,” the chief of staff said.
Altmaier goes on to explain that Germany is moving slowly into the electric car race. It has to become an even bigger focus. “Electric vehicles,” he stressed, “especially in cities”. If the country’s leading carmakers fail to grasp that now, combustion engine cars will be a hard sell in the future. Altmaier demands that Germany make itself the home of the “best electric cars”.
Germany must make more electric vehicles
Although it is growing in popularity, the electric car is still a hard sell. Buyers are mostly skeptical with concerns about range per charge, performance speed, charging periods, and price. In light of this, the country’s Chancellor doubts the country can get 1 million electric cars on roads by 2020.
Angela Merkel is not misled. Among the entire arsenal of German auto legends, BMW alone has a fully electric car. And that’s the i3. Volkswagen has shared a few concepts and so has Mercedes-Benz, but those are set for late releases. Tesla, Inc. (NASDAQ:TSLA) remains immune from any real competition in the region for now.
There was no sidestepping the massive diesel emissions scandal that recently struck the country. Altmaier relayed his outright disappointment over the incident. He condemned industry executives for their malpractices. The political figure admits that his true concern lays with the more than half a million employees in the industry.
Right now, the future of diesel cars is in question. The VW emissions cheat was a damp moment in Germany’s automotive history. Daimler AG, BMW AG and VW finalized a deal with the government in August. The agreement will see as much as 5 million diesel cars upgraded. It also houses a promise for trade-in benefits on older models.
Tesla, Inc. paves the way
But pollution campaigns in Germany are fierce. Pushed by recent events, they have worked the issue of reduced pollution levels into a strong campaign topic. Through greed, auto leaders endangered the future of an entire industry. Bans and tightened regulations over diesel vehicles are imminent, experts say.
Hence the need to become more like Tesla, Inc. (NASDAQ:TSLA) “If the automobile industry doesn’t grasp the fact that it has to invest more in electric vehicles, it will be very to defend combustion engines over the long-term,” Altmaier warned.
Tesla’s most established models cost an arm and leg, the chief of staff pointed out. He highlights that the average Tesla costs $100,000, and goes as far as 250 miles on a full battery. Now the Elon Musk auto business has a new and affordable offering. Unveiled last month, it is called the Model 3 and goes for about $35,000 at its most standard.