Back in 2000 Blockbuster were everywhere.
They were the kings of video distribution. They had global reach and looked set for world domination.
Then along came competition, in the form of an unknown brand called Netflix. The Netflix CEO and co-Founder, Reed Hastings, approached Blockbuster to see if a partnership might be formed. His approach was rejected, the partnership never happened and the rest is history.
In the same way that Blockbuster changed how people watched movies, we have Tesla to thank for making Electric cars sexy. Without Tesla, it is questionable if the take up of Electric Cars would be as strong as it is today. The problem with being a trail blazer however, is that it attracts interest, envy and sometimes fear too.
After Blockbuster pioneered the concept of watching movies at home, competition came in the form of Netflix and others. The Economist magazine have predicted 2018 will be the year of the Electric Car. As we approach the end of 2017, Tesla look set to face competition from not just from one new competitor, but from a whole industry.
Battle lines are drawn
Competition look set to take place across two fronts. There are lots of new cars ready to be launched by the long established car giants. Interestingly, it is also now clear that the established motor manufacturers are set to co-operate as they make charging points available that are suited to the needs of their car brands. On 3rd November 2018, BMW, Daimler Benz, Ford, Volkswagen, Audi and Porsche announced they are teaming up with a venture, named IONITY, to roll-out 400 HPC super-fast charging stations by 2020. Just as Tesla have set-up charging stations specially suited for Tesla drivers we can now anticipate IONITY will promote charging stations for their industry giant partners.
New Cars from 2018
We will see an avalanche of new car launches starting in 2018. These will bring luxury-end competition to the sector. Until now, Tesla have been immune from challenge from these industry heavyweights. Of the many formidable challenges, to the ground-breaking Model S Tesla that will come along in 2018, three from Mercedes, Audi and Jaguar look particularly eye-catching…
Mercedes EQ – Range 500 Km
Audi E-Tron Quattro – Range 500km
Jaguar I-Pace – Range 300Km
So What next for Tesla?
Right now, we know three things…
- Launch of the Model 3 is being delayed and 700 workers have just been let go
- The share price has fallen following a recent announcement of loses of $619.4m
- Competition is hotting up
So what happens next? Will sales of Model 3 soar? Will the Model S fight off competition from Mercedes, Audi, BMW, Volvo and all the rest? Will the direct sales model employed by Tesla usurp that of their conventional rivals?
Or, might someone suggest a partnership – just as the Netflix man did with Mr. Blockbuster all those years ago.
We live in interesting times.