Ford and VW Give Thanks and Credit To Elon Musk and Tesla

Ford CEO Farley Joins VW’s Diess In Giving Credit score To Tesla & Musk https://t.co/8VagJ2KkJi by way of @insideevs.com

— InsideEVs (@InsideEVs) October 29, 2021

Giving Credit score to Tesla

Jim Farley, the CEO of Ford, publicly gave credit score to Elon Musk for main the best way in electrical automobiles:

Thanks for main the best way…. https://t.co/V5HpjAgl6A

— Jim Farley (@jimfarley98) October 28, 2021

There’s a variety of credit score to provide right here. Elon Musk has helped lead the cost to sustainable vitality with Tesla and has all different auto makers reacting to Tesla in making electrical automobiles. It is one of many largest disruptions in a market that I’ve ever seen. Not for the reason that 2007 iPhone launch from Steve Jobs have we had a disruption this massive.

There have not been too many merchandise launched by firms which might be really altering the world and serving to save humanity. Tesla and SpaceX are two firms. I’d enterprise to say that among the plant based mostly firms and genomics firms are others which might be serving to save human sort.

It takes humility for somebody to share the reality about somebody and Jim Farley, the CEO of Ford, has completed so. The query now could be, the place do issues go from right here? Will Ford and VW be capable to make the transition to electrical automobiles and accomplish that profitably? Let’s discover out.

A Lengthy Street Forward

There’s a lengthy street forward for Ford and VW. Tesla went by means of fairly a variety of rising pains as they launched the unique Roadster and unique Mannequin s automobiles a decade in the past. Then there got here the Mannequin three manufacturing ramp which prompted Elon Musk to place “all arms on deck” to make sure the success of the undertaking.

Proper now, Ford and VW nonetheless have their ICE (inner combustion engine) automobiles which might be producing earnings and gross sales for every of their firms. However what occurs when these ICE gross sales start to say no. If these firms can not promote sufficient electrical automobiles to make the distinction, then there begins to be issues on the firms.

One of many massive benefits that firms like Tesla, Nio, and Lucid Motors have is that they’re already producing all electrical automobiles. There’s charging infrastructure being constructed all over the place. Ford, VW, and some other ICE automobile producers are going to should discover a strategy to keep in enterprise and efficiently make the transition to electrical automobiles.

The strategy most are making is to slowly part out ICE automobiles and slowly part in electrical automobiles. However I do not assume this technique will work as a result of ever growing price of EV adoption. If the gross sales of ICE automobiles are declining considerably, and the gross sales of electrical automobiles are growing quickly, you’ve a problem of additional stock and area for ICE automobiles and never sufficient electrical automobiles to promote to fulfill demand. It’ll result in chapter for a lot of auto makers I imagine.

What Is the Answer?

I believe the answer is to go all in on electrical automobiles and ICE automobile producers ought to have completed this years in the past once they noticed the development beginning to change. However like most issues, there is not sufficient incentive to do it till it seems like a giant downside – as a result of, what in case you are incorrect and there was no have to do it?

Now that it is apparent that electrical automobiles are the place the longer term goes, how does a legacy auto maker make the transition with out failing? I believe they’ll should lose cash and in the event that they go bankrupt, get bailed out. Or they’ll should merge with one another and lay folks off to be able to preserve bills below management.

I believe it may get messy for among the legacy auto makers like GM, Ford, and VW, except they’ll discover a strategy to make the transition to electrical automobiles rapidly.

What do you consider electrical automobiles – are they the longer term? How will the legacy auto makers change to electrical automobiles with out going bankrupt?

Depart your feedback beneath, share the article with buddies and tweet it out to your followers.

Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he is grow to be a Tesla bull, masking something about Tesla he can discover, whereas additionally dabbling in different electrical automobile firms. Jeremy covers Tesla developments at Torque Information. You possibly can comply with him on Twitter, Facebook, LinkedIn and Instagram to remain in contact and comply with his Tesla information protection on Torque Information.