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Tesla won’t be ‘king of the hill’ forever, but it will be for the foreseeable future
Tesla is the “king of the hill” in the electric vehicle sector, former company board member Steve Westly said on CNBC’s Power Lunch yesterday. However, Westly, who joined Tesla in 2007 and left several years later, doesn’t believe the automaker will remain at the helm of the EV industry forever. Driven by growing competition from both low-end and high-end automakers, Westly says Tesla’s time at the top is dependent on its competition, because other markets, like Europe, have pushed Tesla to the wayside in favor of other companies.
While it is safe to say Tesla won’t be at the top of the EV industry “forever,” it is certainly also safe to say that they will lead the sector for a considerable amount of time. With legacy automakers dragging their feet and releasing electric vehicle models for the first time in 2021 and beyond, they sit years behind Tesla, whose only focus is building sustainable, high-performance battery electric vehicles. Meanwhile, companies like Ford and GM continue to drag their feet in the mission of developing a lineup of EVs, and European car companies face issues related to production, transitioning away from ICE, and software. Volkswagen is the automaker that comes to mind with the latter issue.
Westly cited GM going all-electric by 2035, Volkswagen indicating that they’re “all in” on EVs, and Volvo, who announced an all-EV lineup by 2030, as indicators that Tesla won’t be the king forever.
But what have any of these car companies done to prove that Tesla won’t be on the top in 2030? 2035? 2050, even?
It is true that Tesla has fallen a tad in terms of European EV sales figures, but it’s not for no reason. Tesla has not yet started the operation of Giga Berlin, its introductory European production facility that could bring at least 500,000 cars to the market every year. Refusing to export Model Y variants from the United States or China, Europe is stuck with the Model S, Model X, and the Model 3, but only for a few months as Giga Berlin is set to begin production during Summer 2021.
While it is true that Tesla is facing competition from both economical EV brands and luxury manufacturers, this fact alone is a testament to the wide range of EVs that the company is able to offer. Not only is Tesla manufacturing the Model 3 and Model Y, which are more than affordable to many families across the world, but it is also making a point to continue the production and sale of its two, more luxurious models: the Model S and Model X. Not necessarily a huge contributor to the company’s yearly production and delivery targets, both of the vehicles were put off as “sentimental” projects by Elon Musk several years ago. However, a recent refresh to both of these cars seems to indicate that the flagship Tesla vehicles are not going anywhere anytime soon.
In the United States, Tesla reigns supreme with the Model 3 and Model Y. In China, the only car to dethrone the Model 3 is an inexpensive, low-range GM project known as the Wuling HongGuang Mini EV that boasts between 80 and 110 miles of range per charge. In Europe, Tesla was once the “King of the Hill.” But, the lack of a production facility ultimately dethroned the company’s title as the highest-selling EV brand on the continent most thirsty for electric powertrains. When Giga Berlin begins production, this will likely change, and Tesla will reopen its potential to compete with the brands that have ruled the European EV sector for the last few years.
Tesla has continued to grow and expand its footprint through a few challenging years, which indicates that, despite the proven adversity that will likely always exist, the company is robust enough to deflect most of the challenges that come its way. Despite production bottlenecks in 2017 with the Model 3, continued issues in 2018, and the COVID-19 pandemic in 2020, Tesla has sustained a growth pattern that most automotive startups can only dream about. The point that Westly made about Tesla not being “King of the Hill” forever is true, but the foreseeable future belongs to Tesla. Until a company comes along and proves otherwise, Elon Musk’s EV company will remain at the helm, as long as it continues to develop a series of mind-blowing EV products that offer range, performance, and aesthetics that are unmatched by any car company within the last decade.
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https://youtu.be/eeizzrlFaZM
Tesla has made two big interior changes to several Model Y vehicles in its lineup, and the changes come just as the new model year begins production.
Last year, Tesla launched the Model Y Standard, which separated the previous models into the “Premium” category. The Standard vehicles lack several features, including more premium interior materials, acoustic-lined glass, and storage.
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
The Model Y “Premium” trims are now getting several new upgrades, which come after the company launched a seven-seat configuration of the vehicle last night in the North American market for an upcharge of $2,500.
The new Model Y seven-seat configuration did not come with just an additional row of seating; it also came with a slew of other goodies that now come standard and were previously only available on the Model Y Performance, which was launched late last year.
All Black Headliner
The new Tesla Model Y Premium trims will now come standard with a black headliner, something that many owners have been requesting for some time.
The previous grey headliner and trim within the vehicle is now gone; it will be all black on all of the Premium trims from here on out, a welcome change:
Credit: Tesla
Larger and Higher Resolution Center Touchscreen
The center touchscreen in the new Model Y Premium configuration is now larger and has a higher resolution than the previous version.
In last year’s Model Y configurations (apart from the Performance), the center touchscreen was 15.4″. Now, Tesla has decided to go with the 16″ version across all Premium trims, which is a nice step up. It was nice to see this in the Performance, but it is really great to see Tesla include this in the Model Y’s more Premium trim levels.
Tesla Model Y Seven Seater
Tesla launched the latest iteration of the seven-seater for the Model Y on Monday night. Traditionally, the Model Y seats five passengers in total, but there were calls for a more spacious version several years ago.
Tesla released it, but it was extremely tight in the back, basically reserving those back seats for only small people or children.
Credit: Tesla
The new configuration looks to be slightly more spacious in the third row, but not as much space as most would require or want. Instead,
Elon Musk
Lufthansa Group to equip Starlink on its 850-aircraft fleet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Lufthansa Group has announced a partnership with Starlink that will bring high-speed internet connectivity to every aircraft across all its carriers.
This means that aircraft across the group’s brands, from Lufthansa, SWISS, and Austrian Airlines to Brussels Airlines, would be able to enjoy high-speed internet access using the industry-leading satellite internet solution.
Starlink in-flight internet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Starlink’s low-Earth orbit satellites are expected to provide significantly higher bandwidth and lower latency than traditional in-flight Wi-Fi, which should enable streaming, online work, and other data-intensive applications for passengers during flights.
Starlink-powered internet is expected to be available on the first commercial flights as early as the second half of 2026. The rollout will continue through the decade, with the entire Lufthansa Group fleet scheduled to be fully equipped with Starlink by 2029. Once complete, no other European airline group will operate more Starlink-connected aircraft.
Free high-speed access
As part of the initiative, Lufthansa Group will offer the new high-speed internet free of charge to all status customers and Travel ID users, regardless of cabin class. Chief Commercial Officer Dieter Vranckx shared his expectations for the program.
“In our anniversary year, in which we are celebrating Lufthansa’s 100th birthday, we have decided to introduce a new high-speed internet solution from Starlink for all our airlines. The Lufthansa Group is taking the next step and setting an essential milestone for the premium travel experience of our customers.
“Connectivity on board plays an important role today, and with Starlink, we are not only investing in the best product on the market, but also in the satisfaction of our passengers,” Vranckx said.
Elon Musk
Tesla locks in Elon Musk’s top problem solver as it enters its most ambitious era
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla has granted Senior Vice President of Automotive Tom Zhu more than 520,000 stock options, tying a significant portion of his compensation to the company’s long-term performance.
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla secures top talent
According to a Form 4 filing with the U.S. Securities and Exchange Commission, Tom Zhu received 520,021 stock options with an exercise price of $435.80 per share. Since the award will not fully vest until March 5, 2031, Zhu must remain at Tesla for more than five years to realize the award’s full benefit.
Considering that Tesla shares are currently trading at around the $445 to $450 per share level, Zhu will really only see gains in his equity award if Tesla’s stock price sees a notable rise over the years, as noted in a Sina Finance report.
Still, even at today’s prices, Zhu’s stock award is already worth over $230 million. If Tesla reaches the market cap targets set forth in Elon Musk’s 2025 CEO Performance Award, Zhu would become a billionaire from this equity award alone.
Tesla’s problem solver
Zhu joined Tesla in April 2014 and initially led the company’s Supercharger rollout in China. Later that year, he assumed the leadership of Tesla’s China business, where he played a central role in Tesla’s localization efforts, including expanding retail and service networks, and later, overseeing the development of Gigafactory Shanghai.
Zhu’s efforts helped transform China into one of Tesla’s most important markets and production hubs. In 2023, Tesla promoted Zhu to Senior Vice President of Automotive, placing him among the company’s core global executives and expanding his influence beyond China. He has since garnered a reputation as the company’s problem solver, being tapped by Elon Musk to help ramp Giga Texas’s vehicle production.
With this in mind, Tesla’s recent filing seems to suggest that the company is locking in its top talent as it enters its newest, most ambitious era to date. As could be seen in the targets of Elon Musk’s 2025 pay package, Tesla is now aiming to be the world’s largest company by market cap, and it is aiming to achieve production levels that are unheard of. Zhu’s talents would definitely be of use in this stage of the company’s growth.
Tesla makes two big interior changes to several Model Y vehicles
Lufthansa Group to equip Starlink on its 850-aircraft fleet
