How Tesla Is Becoming the KING of Electric Cars

How Tesla Is Becoming the KING of Electric Cars


You are watching Kings! Every Saturday we tell the story of how big brands conquered the world Welcome to ALUX.com! The place where future billionaires come to get inspired! Hello, Aluxers, and welcome to another original video presented by Alux.com. In the electric car conversation, there is one name that continually rises above the others. Tesla almost single-handedly established the electric car market about 10 years ago, and today they are still claiming their spot at the top in an increasingly competitive field. There’s no doubt that the future of cars is electric, and Tesla is certainly in position to become the reigning king; however, there are more companies than ever trying to dethrone them. We’re about to take a look at how Tesla got to where they are today and what they will need to do to secure their crown, but first a little background. Tesla, Inc. is an American automotive and energy company that specializes in electric car and solar panel manufacturing. They currently offer Model S, Model X, and Model 3 cars with the Model Y and the new model Roadster planned for release in 2020. Tesla has struggled to become profitable and has recently ramped up production of the more affordable Model 3 to try to help in this area. The revenue in 2018 was about $21.5 billion, but they still missed profitability for the year by almost one billion dollars. Musk has said in the past that he plans for Tesla to become profitable in 2020 and remain profitable from there on out. As of 2019, Tesla has a $43 billion market value. Elon Musk is the primary owner with a 21.9% share of the company and over $55 million invested. If you’re interested, you can find out some more interesting facts about him by clicking in the top right corner, to watch our video of the 15 things you didn’t know about Elon Musk. Tesla has come a long way in a relatively short period of time, so let’s take a few steps back now to see how it all began. Many people think that Tesla was the brainchild of Elon Musk, but the origins of the company are traced to an engineer named Martin Eberhard. His goal was to prove that electric cars could compete with standard gasoline cars and could even be quicker, more fun to drive, and better overall than their counterparts. To say this was ambitious is an understatement—the last successful American car startup was Ford over 100 years prior to Tesla’s founding. His proof of concept was an electric car called the “Tzero” that was hand-built by a boutique electric car maker called AC Propulsion. It proved to him that electric cars could indeed be fast and fun to drive, but he wanted to make this experience accessible to the average car buyer with a production-level vehicle. He used this car, which could go from 0 to 60 in less than four seconds, to convince other engineers to buy into his vision and join his new company. Tesla Motors was officially founded in July 2003 by Eberhard and fellow Silicon Valley engineer Marc Tarpenning, but they would need more support to get off the ground. The electric car market was wide open because some of the big players in the auto industry had tried and failed to launch an electric vehicle. General Motors spent over one billion dollars developing the EV-1, but they found that the car didn’t have mass appeal. The environmentalist market couldn’t sustain the model, and GM soon abandoned their venture into the electric sector. Other major car manufacturers concluded that if GM couldn’t do it, it couldn’t be done. Eberhard and Tarpenning, however, were up to the challenge even though they had absolutely no experience making cars. They set out with their plan of designing and building the Tesla Roadster, the first high-performance electric sports car. At first, they had difficulty securing major donors. Then Eberhard had the idea of pitching to PayPal and SpaceX founder Elon Musk. He reached out to him through email and Musk replied the same day. Elon soon not only invested millions of dollars but also became the chairman of the board. They also made important partnerships with AC Propulsion to license their technology and Lotus as they planned to build the Roadster on the Lotus Elise chassis. Barney Hatt, who was then the principal designer for the Lotus design studio, submitted the winning design and work soon began on building a prototype. On July 19, 2006, the Tesla Roadster was introduced at an elite party in Santa Monica, California, with potential high-end customers, including Michael Eisner, Arnold Schwarzenegger, and Ed Begley Jr. Within two weeks of the party, Tesla had 127 pre-orders, including 100 people who were willing to spend $100,000 to own one of the Signature One Hundred special edition roadsters. The press also wrote many glowing reviews of the anticipated vehicle. Everyone was soon buzzing about the car that The Washington Post described as “more Ferrari than Prius,” but everything wasn’t so optimistic at Tesla headquarters. Behind the scenes, Musk was getting increasingly frustrated as he felt the perception was that he was merely an investor and wasn’t an integral part of the company’s operations. The press mainly was interested in talking to Eberhard, and Musk wasn’t even mentioned in the New York Times article written about the party where the Roadster was introduced. He emailed Eberhard to tell him he found that incredibly insulting and embarrassing. This was the beginning of tensions between the executives of the company, but they had bigger worries on the horizon. Production was delayed not just by months but by years. Eberhard had expected for the first Tesla to be ready in 2006, but that date was pushed back to 2008. This was due to numerous issues, including supplier issues, cost problems, design concerns, and Lotus’ stability. Eberhard realized he was out of his depth and decided to step down as CEO. Although he intended to be part of selecting his replacement, the board—led by Chairman Musk—voted without his knowledge to place Michael Marks in the position before Eberhard could even officially resign. This left a bad taste in Eberhard’s mouth. He took on the position of president of technology but soon found that he was left out of everything except for troubleshooting. He no longer had a strong voice at the company he had founded. This dissolved the relationship between Musk and Eberhard, and Eberhard even brought a lawsuit against Musk for libel. A little over a month later, in January 2007, Eberhard left the company altogether, remaining only a shareholder. Regular production of the Tesla Roadster finally began on March 18, 2008. In October 2008, after the first 100 vehicles were finally being delivered to those who had ordered them two years prior, Musk announced that he would be taking over as CEO.
He stated in an interview, “I’ve got so many chips on the table with Tesla. It just made sense for me to have both hands on the wheel.” Although some initial dependability issues were a concern, Tesla was off and running. The popularity of the cars and Musk’s increasing celebrity helped elevate its $100 million initial public offering in June 2010. Although Eberhard was left on the outside looking in, his vision for electric cars had finally become a reality. Tesla had proven that it could live up to the hype with the Roadster, and then they focused on introducing a more affordable sedan model, the Model S, which became available in June 2012. Deliveries of the Model X SUV began in September 2015. As of July 2017, over 500,000 people had made advance reservations to buy the highly anticipated Model 3, representing sales of about $22 billion. The Model 3 was the top-selling plug-in electric car in the US in 2018 with almost 140,000 units delivered, marking the first time a plug-in car had sold more than 100,000 units in a year’s time. As of 2019, Tesla is the world’s best-selling plug-in passenger car manufacturer. They are ranked first both by brand and by automotive group in the electric car space. In 2018, 245,240 cars were delivered, and sales increased by 280% in the US alone from 2017. They claim 12% of the total electric car market, in what is becoming an increasingly competitive sector. Now that Tesla has erased all doubts that it can be done, nearly every big name automotive brand is trying to get a piece of the electric car market, so what does Tesla have planned to remain competitive in the years to come? In November 2017, Tesla unveiled the prototype for its 2020 Roadster, which is expected to have a range of 620 miles and reach 0 to 60 in 1.9 seconds. Its top speed will be over 250 miles per hour, and it can reach a speed of 100 in 4.2 seconds. The base price of the car is $200,000. The Model Y, which is similar to the Model 3 but 10 percent bigger, will also be released in 2020. A prototype for a Tesla pickup truck, called the Cybertruck, will also be revealed in November 2019. Tesla is also developing an all-electric semi-trailer truck, which Musk intends to eventually make self-driving. This innovation could potentially put the livelihoods of the 3.5 million truck drivers in the United States at risk. In 2019, Tesla was approved to start manufacturing in China, which promises to greatly increase output and future profitability. There’s no question that Tesla essentially founded the electric car industry by proving that electric cars could be fast, luxurious, and even affordable. This broadened the appeal for electric cars and created a market that is growing year after year. By this fact alone, Tesla appears worthy of the title of king of electric cars, but we can’t quite place the crown yet. The fact is that for the majority of its operation, Tesla has not had much competition as everyone has been playing catch up in the electric car scene. However, with a new wave of electric cars either set to be released or already released from every brand from Hyundai to Jaguar, Tesla will have to prove itself in a crowded field of competitors. All indicators show that Tesla is up to the challenge, but only time will tell whether they continue to reign supreme. Now that we’re wrapping up this video, we’d like to know: Let us know what you think in the comments. And, of course, for sticking with us until the end, you must be waiting for something, right? You might be wondering where Eberhard and Tarpenning got the initial capital needed to start their own car company. Well, Tesla was not the first company the two founded together. In 1997, the partners created NuvoMedia, one of the earliest eBook companies. They ran the company for about two years when out of the blue they received a buy-out offer. They sold the company to Gemstar-TV Guide in 2000 for $187 million. Thank you for spending some time with us Aluxers. Make sure to subscribe so you never miss another video. We also handpicked these videos for you to watch next. As always the conversation continues on social media. Thanks again and we can’t wait to have you back tomorrow.

100 thoughts on “How Tesla Is Becoming the KING of Electric Cars

  1. Hey Aluxers, is the future electric?
    Make sure to join www.alux.com
    Should TESLA Make Electric Planes: https://www.youtube.com/watch?v=Ph_OP_a6GyE

  2. imo, Tesla has too big a lead, at the moment. I don't think the major car companies will be able to retool – and change their business model – fast enough to catch up.
    Plus, when you examine their financials, most of them won't be able to retool.
    Rock vs hard place.

  3. The Ford Mustang Mach E reveal is tonight, and I'm intrigued. They are attempting to show off this vehicle in the same way Tesla does product announcements. I'm going to watch. The leaked pics and specs look pretty promising. They have also partnered with Rivian. So, maybe Ford has got a shot to remain relevant in the future market. I'm a Model 3 owner BTW.

  4. Uh… corruption killed the GM EV1. Everyone loved that car. If they had just built upon that car we would be breathing much cleaner air today… Some facts about EV history need to be clear…

  5. Tesla was profitable in Q3 2019. A lot of talk about the lack of profits and miss that?
    Also, Tesla's market value is $63 Billion, not $43 Billion.

    The information on here is not only outdated, but it's also generally incorrect. Whoever is doing the research, did not do a good job.

  6. All auto makers are at least 7years or more behind TESLA…When Tesla hits 2025..they will just be knocking on 2018's door…they are late to the dance. Tesla is the professor in college…other auto makers are cutting class in high school

  7. TO SAY THE EV1 DIDN'T HAVE MAS APPEAL IS A LIE A LOT OF PEOPLE WANTED TO BUY THE CAR BUT GM DIDN'T REALLY WANT TO SELL IT SO WHEN IT WAS FINALLY BEING MADE THEY SENT LOBBYISTS TO CALIFORNIA TO PRESSURE POLITICIANS THAT GM WOULDN'T HAVE TO SELL THEM … THEY JUST LEAS THEM AT AND A HIGH RATE … MOST PEOPLE BACK IN THE DAY DIDN'T WANT TO LEASE CARS THEY WANED TO BUY THEM SO INTEREST IN LEASING THEM AT A HIGH RATE DRIED UP BUT NOT DEMAND FOR THE CAR GM JUST WOULDN'T LET YOU BUY IT . MEANY WANTED TO BUY THE CARS AFTER THEIR LEASE WAS UP AS WAS THE CUSTOM PRACTICE BUT GM REFUSED TO SELL A SINGLE ONE THAT'S NEVER HAPPENED BEFORE WITH ANY OTHER CAR COMPANY THEY COULDN'T EVEN LEASE THEM AGAIN … THE CARS WERE THAT GOOD AND PEOPLE KNEW IT SO GM KILLED THE ELECTRIC CAR THERE IS A MOVIE ON U TUBE THAT TELLS EVERYTHING THEY TOOK THEM ALL AND CRUSHED THEM IN THE DESERT … NEVER TRUST A GAS COMPANY TO MAKE AN ELECTRIC CAR

  8. I don't think they'll be another car manufacturer that will over take Tesla.
    Every other car manufacturer that comes out with "new technology" for electric car their prices will always be higher, and Tesla will always be ahead in the technology for electric cars.

  9. The norator's voice is getting monotonous and standard…should try to get different norators for every video or some of the videos.

  10. Most of people also forget about self driving capability Tesla have which unable profit the company est. $ 3 billion in the future. The semi truck alone in my opinion will be one of the biggest profit in the truck market.
    Also the was no word about Tesla Energy ?

  11. The existing companies are just about now starting to get serious about building electric cars in mass quantities. At this point in the economic cycle it is going to be next to impossible for car companies to start building millions of electric cars. They don't have the battery capacities and don't want to sabotage their gas car business too fast. Tesla is getting farther and farther ahead. In 2 or 3 more years they will own the auto industry.

  12. Unfortunately, Tesla won't stay at the top for too much longer.
    And I'm not saying this because I hate Tesla, I think they make some neat cars.
    I'm saying it now because all the Germans have begun their electric car transformation,
    And there is a point where their funding and resources will exceed Tesla's experience, and some point the Germans will make the better EV.
    This will probably happen in the next 5-6 years too,
    Oh well.

  13. Tesla is really the only company designed and made to make electric vehicles…so this statement is sort of obvious…

  14. Of course it's going to lead in electric vehicle sales if the companies it is in competition with make fossil fuel vehicles as well…

  15. Why even say this when it's obvious…if there isn't a company that makes just electric vehicles besides Tesla, then of course Tesla will lead in electric vehicle sales…

  16. It's sort of like saying subway sells more healthy food than mcdonalds… when subway was made to sell healthy food, and McDonald's just has healthy food as part of its options…

  17. That's a stupid question…unless there is a company that puts as much money into making electric vehicles and have that as the main focus, then Tesla is going to be the leader in electric vehicle sales…

  18. But Musk is already doing fine as Tesla’s largest shareholder. The CEO holds 22% of the company’s outstanding stock. On Oct. 23, he saw the value of his holdings rise $2 billion to $11.8 billion after a stellar quarter. Tesla turned a profit, surprising Wall Street analysts, sending its share price soaring about 20% in after-hours trading.
    https://qz.com/1734771/teslas-profitable-quarter-netted-2-billion-for-elon-musk/

  19. Tesla has many advantages.. not least of which is millions of miles of real world data to assist in its self driving ambitions.. then there’s battery technology which they lead also.. then there’s their own self driving chips/software over the air updates.. and the list goes on

  20. Real Tesla’s competitive car maker is Škoda with their new model “Vision iV”. Range, acceleration, fast charging from 0 – 80% in 30 mins, SUV – all is same or better then TMX. The most important is only half price for Škoda Vision iV than double price for TMX. 🤩

  21. I think competition has better quality in terms of exterior, gaps and all that stuff that tesla has not fixed for years but their charging network is main advantage

  22. 3:50, GM found that the EV 1 didn't have much appeal…
    Wrong! GM only launched EV 1 because of some government initiative at the time which would make car manufacturers produce electric cars. After the new administration got elected enough lobbying happened to cancel that law so GM took all EV 1s back from owners (cars were leased) and scrapped them.
    Owners were so sad they held candles, protested… But GM didn't care, they just wanted electric cars gone

  23. I hope for the sake of the fledgling electric car industry, Tesla never does become a "king" of the road. Elon Musk himself hoped others would participate to make "electric transport" a reality. And that needs a robust selection of competitors. Which is why he opened his patents up to them. It is true Tesla is fairly far ahead of competitors in terms of range, price, and value. And certainly when you consider self driving. And if they continue on the same pace that'll remain the case. But certainly there'll be some that shine with their high end luxury models (like the Porsche Taycan) and with specialty vehicles (like Rivian and Bollinger). One area where I feel Tesla falls down is in the area of design. I LOVED the original (Lotus) Roadster and really liked the original 'S'. But the current designs seem kind of, well, stodgy to me. So any high end company that attends to design will have a leg up in that regard.

  24. That General motors statement is so wrong. The EV1 was very popular. It was so popular that they were destroyed under armed guard. You should do your homework

  25. I don't see a single earthly genius ICE chief, but a bunch of grease monkeys, trying a failing to enter the very sophisticated Electric car world of a super intelligent alien, we baptized as Elon Musk, putting to work futuristic technologies to offer stupendous machines that are fascinating and pampering the consumers, some of them waiting well over a year in line to get their truly dreamy cars. just Imagine. no more Gasoline, or oil changes. no more tune ups, no more servicing (Practically) no more costly at least yearly expensive general check ups. No exhaust, no noise, no timing belts, no coolant, no radiator, exhaust or converter, no transmission, no more valve jobs, no more gaskets to stop those annoying oil leaks ruining your drive way. No more of a big list I don't have space for. In comes the super clean supercharging station practically cost free. except for a few dollars you normally gave the gas station attendant, to fill up your old ICE car. in comes the inter connectivity that will keep your car always technologically up dated, for decades to come. The self driving operativity soon to be completed is the only tassel missing from Tesla becoming a perfect car. Competition? Where, they aren't even able to technologically match the first Tesla of ten years ago. King ? What King, Elon Musk earned the imperial throne of the car business, that has only started. Now that he has a little more time available probably one day he will have a shuttle available to anyone for a trip to watch our universe from close range.

  26. Your Question: Who has a chance of surpassing Tesla in the electric car market?
    Answer: In the U.S., no one. Worldwide, VW.

  27. I don't think anyone will ever be head to head to tesla. Ford has the mach e but as long as tesla does their software updates making the cars better and faster. The competition will have to do the same or there will always be a gap between tesla and the rest. Plus the super charging network helps put to boast as well.

  28. The king of electric cars? How about just the king of cars. Tesla's competition is not electric cars, it's gasoline cars. Electric cars represent just over 2% of the new car market in the US, leaving enormous room for growth. Tesla's mission is: to accelerate the transition to sustainable transport and energy. Tesla knows they won't be able to accomplish this mission by themselves. It will require many car companies to convert the US fleet to electric.

Leave a Reply

Your email address will not be published. Required fields are marked *