Will The German Car Giants Ever Catch Tesla? – Forbes

Its becoming a bit of a clich to say that Tesla TSLA has a lead on its competitors. But when the CEO of Audi Markus Duesmann claims his company is years behind its American rival, it makes you wonder if they can ever make up the distance. Although Audis e-tron electric SUV has been a popular seller, driving it back-to-back with Teslas Model X is very informative about exactly where both companies strengths lie. Overall, the comparison doesnt look good for Audi.

Tesla's cars have clear technological advantages over their German competitors. (Photo by Yichuan ... [+] Cao/NurPhoto via Getty Images)

In the UK, the e-tron is quite a bit cheaper, starting at 60,650 ($77,500) where the Model X begins at 82,980 ($106,000). But in the US the e-tron is about the same price as it is in the UK, whereas the Model X Long Range is $84,990. If youre in the market for a luxury SUV, the price difference might not be so important, and its not that much in America anyway. What you get for your extra money is, though, and as Audis Duesmann points out, the most significant factor is range. The basic e-tron has a 71kWh battery, 30% less than the Model Xs 100kWh. But its WLTP range is just 190 miles, where the Model X Long Range has a 314-mile WLTP rating. So the Audi has around 60% the range of the Tesla from 70% as much battery. The difference is not just because the Model X has more batteries, it also gets more mileage out of them. The more expensive e-tron 55 Quattro has 95kWh of batteries, yet still only offers 271 miles of WLTP range.

One of the reasons for this is the aerodynamics of the two cars. Despite being a massive SUV, the Model X has a drag coefficient of 0.25, where the e-trons is 0.28. Both are good, when you consider that a Porsche 911 has a drag coefficient of 0.29, but the Model X has a major edge. The greater battery quantity is worth noting, too, when you sit inside a Model X and wonder where Tesla has actually put them all. Duesmann agrees that that is an area where Tesla has an engineering lead. The e-tron is resolutely a five-seater, while the Model X has six- and seven-seat options, plus a much bigger luggage space if you drop the rear seats down. It can tow 2.3 tons too, compared to the e-trons 1.8.

Audi's e-tron has won some popularity, but it lags behind the Tesla Model X in key specifications. ... [+] (Photo by Joe Scarnici/Getty Images for Audi)

Most car enthusiasts will agree that Tesla interiors are a bit bleak compared to their German competitors. There are precious few discrete button controls for things like the air conditioning, with virtually everything operated via the central LCD panel. The general sense of luxury is lower, too, with Audis, BMWs and particularly Mercedes having a much greater sense of attention to detail in the seating designs and fit and finish. Tesla also has a controversial reputation for quality control, and came tenth from bottom in a recent used car reliability survey in the UK.

Whichever Tesla Model X you buy, though, it will be faster than the e-tron, both to 60mph and in top speed. The e-tron tends to understeer and you can feel all of its 2.5-ton weight, whereas the Model X weighs around the same but somehow manages to handle much more nimbly. If you look at the Mercedes alternative, the EQC, the differences are similar. Its about the same price as the e-tron, but with similar deficiencies in range, interior space, towing capacity, handling and performance, albeit enjoying an interior design that many would prefer over the Model Xs.

The battery placement within the Tesla Model X chassis leaves room for loads of interior space. ... [+] (Photo by Sjoerd van der Wal/Getty Images)

Tesla isnt resting on its battery laurels, either. Weve already discussed how Tesla is already looking towards the next generation of Cobalt-free battery technology, but the company has also been great at making deals with battery manufacturers, such as the recently announced expansion of its joint venture with Panasonic to three years. The Cobalt-free batteries are rumored to be part of a deal with Chinese battery maker CATL.

To explain Teslas lead as coming mostly from its battery advantage would be wrong, however. Jack Dolan of A2Mac1 reckons its no individual advantage that gives Tesla the lead, but the combination of lots of factors. A2Mac1 is a global company that takes apart new vehicles from every manufacturer and builds a database of how they are put together, which major carmakers around the world subscribe to. So A2Mac1 knows a thing or two about what some cars do better than others. Everything from battery density to how the dashboard instruments are attached to a crossbar give Tesla cars incremental benefits. Nikkei Business Publicationss teardown of the Model 3 has also claimed to find electronics that was at least six years ahead of what a major Japanese automaker could achieve in self-driving.

BMW only just officially announced the iX3, its first electric SUV. (Photo credit should read ... [+] NICOLAS ASFOURI/AFP via Getty Images)

All of these advantages stem from one prime mover. Tesla took electric cars seriously when the German manufacturers were still putting all their motor design eggs in the diesel basket, because they thought CO2 emissions were the biggest problem. Then it turned out NOx particulates were an issue as well, and they had been massaging their CO2 figures anyway. Only once they realized their mistakes did they decide that they needed an EV strategy as well. Audi may have five different EV platforms to choose from, but the company has only been producing pure EVs for a couple of years, and VWs much-anticipated ID.3 just became available to order a few days ago. BMWs may have been launched its i3 in 2014, but has taken its eye off the ball since then and only just recently announced its first electric SUV, the iX3.

Overall, then, Tesla is ahead because it has been building mainstream EVs for longer than other car manufacturers and taken a more bullish stance on driving the market in new directions. The German automakers are still hedging their bets with hybrids and plug-in hybrids alongside pure electric vehicles, clinging onto internal combustion engines for as long as they can. They have lots of manufacturing history and huge capacity, but as the market shifts towards electric, a lot of what they were good at will become less relevant, and they may never catch Tesla. Thats why Teslas shares tripled in value over the last year, and theyre still going up. The investment community can see which direction things are headed.

Excerpt from:

Will The German Car Giants Ever Catch Tesla? - Forbes

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