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BMW and Mercedes' Big EV Push against Tesla · Elon Musk Podcast

• 0:00
  Hi everybody, and welcome back to another episode of the Elon
• 0:04
  Musk Podcast. Today, we're turning our focus
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  to the world of electric vehicles, with an emphasis on
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  European automakers. The IAA Motor show in Munich was
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  a hotbed of activity featuring the grand unveilings of electric
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  concept cars from BMW and Mercedes-Benz.
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  Both German giants are making massive strides to ensure they
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  don't lag behind in the global EV market that's dominated by
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  Tesla in emerging Chinese companies.
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  But before we get into the nitty gritty of these unveilings and
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  what they signify for the automotive sector, and before we
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  get into the nitty gritty of these unveilings and what they
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  signify for the automotive sector, let me quickly remind
• 0:43
  you that today's episode is brought to you by
• 0:45
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• 0:55
  Make sure to check them out. Now let's start with BMW's grand
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  reveal. At the IAA Mobility Motor Show
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  in Munich, BMW showcased its electric concept car named the
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  Vision New Claus. Now this car is expected to be
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  the harbinger of a new era for BMW, built on a new
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  architectural foundation that will serve as the blueprint for
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  all its future Ev's. Oliver Zipped, the CEO of BMW,
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  shared that they're planning to double their EV sales this year.
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  We also estimated that by the end of 2023, battery Ev's will
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  comprise 15% of BMW's global sales.
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  For a brand steeped in a history of internal combustion engines,
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  that's a very significant pivot. Now, Mercedes-Benz wasn't far
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  behind either. They unveiled their concepts CLA
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  Class, another electric vehicle designed from the ground up to
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  serve as a cornerstone for their future electric offerings.
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  Their CEO was all praised for the car, claiming that its specs
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  are unparalleled in its class. It boasts an impressive range of
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  750 kilometers and a quick charge feature that can juice up
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  the car to run 400 kilometers in just 15 minutes.
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  If that doesn't show their ambition in the EV sector, I
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  don't really know what could, and the introduction of
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  dedicated EV platforms for BMW and Mercedes marks a significant
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  departure from their previous strategies.
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  Earlier, they would retrofit their existing combustion or
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  hybrid vehicles to accommodate the batteries, but with these
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  new reveals, they're setting up a dedicated assembly line for
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  EV's. It's a very serious commitment,
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  but despite these efforts and lists of pine that both Mercedes
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  and BMW have a mountain to climb to catch up the Tesla, let alone
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  to dominate this sector. Now a senior research analyst at
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  Bernstein Research, Daniel Roska, pointed out that while
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  these new platforms are a step forward, they may not completely
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  close the gap with Tesla and the competitive Chinese players.
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  And Speaking of competition, price wars are becoming
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  increasingly common the EV market.
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  Tesla has been aggressive with its pricing strategy, which puts
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  additional pressure on premium market players like BMW and
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  Mercedes. Now Collinius from Mercedes
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  emphasize that they aren't aiming to push volume, but are
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  focusing on value over volume. This could be a significant
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  differentiator in a market where many players, including Tesla,
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  are fighting fiercely for market share.
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  Now Volkswagen is also in the race with unique strategy.
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  They plan to target various market segments by offering cars
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  at different price points, and with the announcement of
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  launching 11 new EV models by 2027, they're definitely not
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  holding back. While these vehicles themselves
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  are impressive, the real differentiator in the EV sector
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  seems to be technology. Tesla software capabilities,
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  especially with Autopilot, have set a high standard, but
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  European automakers are catching up.
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  BMW, for example, is touting its head up display that projects
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  information out of the driver's windshield.
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  Now, Zips also highlighted their significant investment in
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  digital aspects, including semiconductors.
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  So the electric vehicle market is getting more and more
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  crowded. It's no longer just Tesla and
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  the Chinese companies like BYD. But why is this happening?
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  One reason could be the growing consumer awareness about
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  environmental issues. And as the climate crisis
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  intensifies, people are increasingly considering
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  sustainable modes of transportation, thereby driving
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  up the demand for Ev's. And governments around the globe
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  are also implementing stringent emission regulations, forcing
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  automakers to pivot to more eco friendly technologies.
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  Now BMW and Mercedes-Benz in particular have historically
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  been associated with luxury, performance and engineering
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  excellence. But they also recognize the
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  urgent need for sustainability and are taking big strides to
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  make their fleet more eco friendly.
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  This urgency is partly due to market demand, but it's also
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  because the competition is fierce in not waiting for them
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  to catch up. BMW is offering a concept car
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  that aims to set the stage for a brand new lineup for their EVs
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  and they plan to introduce it over the next few years.
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  And according to BMW CEO, this framework is such a huge game
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  changer. It's not about creating another
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  electric car, it's about shifting the very core of what
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  BMW represents as a brand. They're not only electrifying
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  their vehicles, but they're also reimagining how these cars will
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  interact with the drivers and with the environment and other
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  vehicles. The user experience is expected
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  to be significantly augmented by digital features, aiming to make
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  driving more intuitive and also enjoyable.
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  And on the flip side, Mercedes-Benz Concept CLA class
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  offers not just an electric vehicle, but a feat of
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  engineering that pushes the boundaries of what Ev's can do.
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  750 kilometer range is impressive, or really what
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  caught everyone's attention was its rapid charging capabilities.
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  15 minutes for 400 kilometers is something that even Tesla hasn't
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  achieved in their consumer models, and if you can bring
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  this from a concept to an actual car available in the market,
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  that would represent a massive leap in EV technology.
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  Now let's talk about some of the challenges they faced.
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  First off, the issue of battery technology and sourcing lithium
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  ion batteries are at the heart of all Ev's right now, and
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  securing a steady, sustainable supply of these materials is a
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  logistical and ethical challenge.
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  Companies are racing to find alternative materials or improve
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  the efficiency of existing ones. This is where Tesla has an
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  advantage with its Gigafactories and plans to manufacture its own
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  batteries. Whether BMW and Mercedes can
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  catch up on this front, it's something to keep an eye on.
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  Another challenge? Infrastructure.
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  Europe does have a growing network of charging stations,
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  but it's not yet an extensive network like it is in the US,
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  and it needs to be a bigger market to support a mass
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  adoption of electric vehicles. Now both BMW and Mercedes will
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  need to consider how their cars will fit into the existing
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  infrastructure, or what steps they could take to expand it or
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  make their own. And let's not forget about the
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  emerging competition from China. Companies like NEO and Sbegg and
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  BYD are not just content with conquering the domestic market.
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  They have global ambitions that are slowly but steadily entering
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  European and North American markets.
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  With often lower price models and impressive tech features.
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  These companies are set to give the traditional European
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  automakers a run for their money.
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  Meanwhile, VW and Audi are also stepping up their game.
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  VW has made it clear that they intend to cater to various
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  segments of the market, providing options for every type
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  of consumer, and the versatility in their approach can make them
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  a formidable competitor to both BMW and Mercedes.
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  Now we have to remember again Tesla's Autopilot Tesla
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  software, the hardware that drives that software.
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  It set a standard for autonomous driving features.
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  And how will BMW and Mercedes compete on them?
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  They're working on it, but as mentioned earlier, BMW is
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  investing heavily in digital features, semiconductors, which
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  can significantly enhance vehicle performance and
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  experience. And these moves by BMW and
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  Mercedes-Benz are not mere incremental steps in the realm
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  of EVs. They signify a wholesale
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  commitment to the future that's electric.
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  And while these are challenges and there's stiff competition
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  out there, their willingness to invest, innovate and adapt
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  speaks volumes about the resilience and vision of these
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  iconic brands. Thank you so much for tuning
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  into the show today. I hope you found this discussion
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  insightful and also entertaining.
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  And if you did, if you enjoyed today's show, please hit the
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  subscribe or follow button on your preferred podcast platform.
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  It's free. It takes just a minute.
• 9:09
  Until next time, carry yourselves in each other and
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  I'll see you in the next one.