EVs Take On Tesla

Karma Gse-6 teaser
Karma Gse-6 teaser

Tesla ($TSLA) has been thriving as the only cool EV choice you could make. Then came the gorgeous Porsche Taycan and a slate of upcoming EV choices, from the Rivian (SUV and pick up), the anticipated electric Hummer from GMC to the Air from Lucid Motors. While the Rivian is arguably the biggest long-term threat, the Air goes directly after Tesla flagship, the Model S.

Elon Musk isn’t taking the competition for granted either. He recently announced a lower price for the S, slashing it to $69,420, which beats the Lucid Air’s after-tax credit price of $69,900.

The Air is a new look EV that boasts 400+ mile range while the S hasn’t really changed it’s basic silhouette since 2012. Yet Tesla has Elon Musk’s uncanny talent for showmanship. His tweet announcing the price cut resulted in a 4% jump in $TSLA.

Takeaway: While new competitors are circling, Lucid Air should not be considered a serious threat to Tesla. Consider that they have no track record, the Air isn’t out until sometime in 2022 — at best. And the design, let’s be serious, isn’t sweet. It’s no Karma Gse6, which is absolutely stunning from what we can see so far. Yet the Karma is going to be $80K with less range.

lucid-air

While these upstarts may have some interesting designs to look at, keep in mind none of them have had the runway Elon has. He’s miles ahead in manufacturing, global distribution, sourcing of core materials, battery technology and autonomous driving technology. Oh yeah, he’s learned a few interesting things from Space X that has already been applied to upcoming vehicles like the Cybertruck. We love to see the competition and innovation, but as Nikola’s Travis Milton proved, it’s a lot harder to be Elon Musk than it looks.

Bottom Line: Tesla continues to be a best in breed with no equal – the closest true rival down the road may be Rivian, because a 100,000 unit order from Amazon is no joke and their pick up and SUV is a good alternative to the upcoming Cybertruck. As for semi trucks, forget Nikola ($NKLA), but pay attention to Hyliion ($HLYN) which may offer a more pragmatic, “bridge” alternative to an all-new electric semi truck.

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3 comments
  1. As with any industry, competition breeds lower prices and more innovation. Excited to see the EV industry play out.

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