Tesla is lapping Germany’s automakers in the global EV race
Tesla delivered 889,015 cars in the first half of this year, more electric vehicles than Volkswagen AG, BMW AG, Mercedes-Benz Group AG and Porsche AG sold combined. The Germans are struggling as software issues delay key models and contribute to waning sales in China, their biggest market, where Tesla and local champion BYD Co. have raced ahead.
They’re even playing second fiddle in their home market, where Tesla remains the top EV brand. Investors will hear from three of the German companies this week, with Porsche reporting quarterly earnings Wednesday, followed by Mercedes and VW on Thursday. As Tesla pushes for more volume with aggressive price cuts, it’s dialing up the pressure on legacy manufacturers that are struggling to keep pace.
Tesla’s EV sales increased 30 percentage points more than VW’s in the three months that ended in June, widening its lead. While the Germans are mired in difficult talks with unions about retooling their combustion-era production sites, Tesla plans to expand its German factory and is preparing to build a new plant in Mexico. “Tesla is still miles ahead of the German carmakers in all the major markets," said Matthias Schmidt, an auto analyst based near Hamburg.
“They’re under pressure to boost volumes to reach the kind of economies of scale needed to make EVs profitable." Germany’s automakers thrived in the past because they perfected the production of vehicles running on gasoline and diesel, with hundreds of high-quality local parts makers supplying them with gearboxes, fuel injectors and crankshafts. Now that the battery is taking over, their “Vorsprung durch Technik" has evaporated. In Europe’s biggest economy, inflationary pressures, a dearth of skilled workers and high energy prices
. Read more on livemint.com
