Tesla Remains A Moving Target But The Competitive EV Landscape Is Also Evolving

The EV market, at least in the U.S., is still the playground of Tesla Inc TSLA with other automakers playing by the EV king’s rules. Yet, Tesla is basically selling only four EVs with the eagerly anticipated Cybertruck yet to have its debut by the end of the year. Although Tesla sold the most EVs in the U.S. from January to June, by far, the competitive landscape is bound to change at some point. With 2024 Honda Prologue, Honda Motor Co HMC is getting back in the EV game with the help of the General Motors GM Ultium battery platform. But as the first-ever simultaneous strike against the Detroit three automakers, GM, Ford Motor F and Stellantis STLA entered its third week, legacy automakers will undoubtedly have an even harder time staying in the EV game. 

Honda Is Getting Back In The EV Saddle

The funky looking sedan, the first Honda-made EV, attempt was a flop. But, with the help of General Motors, Honda’s second EV for the U.S. can help it get back to the EV game. The Japanese automaker just unveiled its midsize all-electric SUV that promises to challenge the Tesla best-seller, Model Y. Ruggedly styled, spacious with a power and range that match those of Tesla, the 2024 Honda Prologue promises to provide drivers with a sporty yet refined experience. 

Legacy Automakers Are Being Challenged By The UAW Strike

Last week ended with UAW president Shawn Fain announcing that the ongoing strike will expand to two more assembly plants, hitting Ford and GM. With Ford’s Chicago and GM’s Michigan plant, the strike now includes 25,000 workers. 

GM And Ford Were Already Far Behind Tesla

While Tesla sold 325,291 vehicles in the United States from January to June, General Motors took a distant second place through Chevrolet with 34,943 sold vehicles, followed by Ford Motor F, Hyundai Motor Company HYMTF and Rivian Automotive Inc RIVN. Chevrolet Bolt and the Ford Mach-E were found to be rivals to the Model 3 and Model Y but in comparison to volumes of Model Y and Model 3, GM and Ford ended up with a niche EV label as EV makers with a small output. 

Ford and GM have announced ambitious EV investments but with the costs and consequences of the ongoing strike, especially if they adhere to UAW’s demands, they even risk having unprofitable business models. Producing EVs profitably is a daunting endeavor that even Tesla had trouble with in the beginning. 

The EV Game Continues To Evolve

Besides new EV models hitting the road, the EV story is also about revolutionary technology as these vehicles are essentially more about software than hardware. One example is a tonneau cover manufacturer Worksport Ltd WKSP who is bringing to life a solar-powered tonneau cover SOLIS and remote battery system COR that promise to disrupt the pickup market as well as the entire EV game. As Worksport works on developing this green power duo, it already made a long-term supply agreement with an automotive aftermarket reseller for its advanced hard-folding and soft-folding covers that come with solar charging capabilities. Potentially making $16 million in annual sales from the deal, Worksport already has an order of $1.6 million for its hard-folding covers and another of $720,000 order for the soft-folding covers from the same customer. Therefore, Worksport has the financial ‘fuel’ it needs to bring its groundbreaking yet affordable power duo to the finish line.

Catching up to Tesla remains a challenging, if not impossible, mission

As it continues to push boundaries, Tesla undoubtedly remains a moving target and therefore, quite challenging to catch up. But once Worksport hits the market with its SOLIS and COR revolutionary accessories, automakers who didn’t stand a chance just might the super power they need to challenge Tesla or at the very least, the tech support without which one cannot even dare to play the EV game.

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