Tesla Reverses Course While Traditional Automakers Continue Accelerating Their EV Efforts

Another week, another milestone on the EV journey. Tesla Inc TSLA took an interesting turn by including advertising in its strategy. A disruptive automotive parts player, Worksport Ltd WKSP made another important step towards launching its promising solar-powered equipment. Meanwhile, traditional automakers such as General Motors GM and Volkswagen AG VWAGY are facing increasing pressure to accelerate their EV progress.

Tesla 2023 Shareholder Meeting

During its annual meeting in Austin Texas, Musk revealed that Tesla will be trying a little advertising after all. This decision is quite a turnaround as its CEO Elon Musk was saying for years that there is no need for advertising as demand exceeded supply, adding that those funds are being used to make Tesla’s product great.

After receiving a positive reaction, Musk also warned of tough economic times that he expects to be around for at least the following 12 months, saying Tesla is not immune to a worsening economy. Musk also stated that Tesla Roadster which was due for production in deliveries back in 2020 is expected to get on the production line in 2024, while its competition Rivian R1T, Ford F-150 Lightning and Ford Mustang Mach-E have already hit the road. Putting aside the fact that Ford is known for producing America’s most beloved pickup, Tesla has no time to waste. Ford also stated that it will be doubling the production of Lightning’s older all-electric sibling, the Mustang Mach-E, this year. 

Worksport Reaches Another Milestone

After having embarked on a journey of becoming a positive economic force in Western New York, Worksport Ltd WKSP has now hired new staff to operate its U.S. facility. The highly skilled staff bring Worksport another step closer to starting U.S. assembly of its hard folding tonneau covers in Western N.Y.

Worksport will soon be providing an update regarding the production launch of its improved COR advanced hot-swap battery system. After testing and completion, Worksport will be able to produce its eagerly anticipated SOLIS solar-powered tonneau covers.

General Motors And Volkswagen Face Threat Of Largest Idled Capacity In China

On Tuesday, Greenpeace warned that Volkswagen and General Motors could have considerable unused production capacity for internal-combustion-engine powered automobiles in China by 2030 if they do not speed up their EV transition. Chinese EV startup BYD Company Limited BYDDY  has been luring away Volkswagen’s customersas it followed Tesla’s price discounting strategy, with General Motors revealing it will be converting more than half of its manufacturing footprint in China to be EV-capable by the end of the decade.

General Motors, Toyota And Volkswagen State Biden’s EV Goals Are Too Ambitious To Meet

According to Reuters, The Alliance for Automotive Innovation that represents General Motors, Volkswagen, Toyota Motor Corporation TM, Hyundai, Kia, BMW, Ferrari, Honda Motor Co Ltd (NYSE HMC), McLaren, Subaru, Porsche, believes the goals posed by Biden’s administration are too challenging to meet with building blocks to realize this future not being available due to a restricted supply chain. The new standards aim for 60% of all vehicles sold in the U.S. to be fully electric by the end of the decade, rising from prior goal of 50%. Acc

Considering that even Tesla decided to change its strategy that seemed to be ‘written in stone’, it’s safe to say that anything can happen as automakers accelerate their progress towards realizing an all-electric future.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.