Volvo, a Swedish car manufacturer, has recently announced that they will be coming out with an all electric high performance sedan. The car is not a Volvo though, it will be made by a manufacturer called Polestar which will be based out of China and owned by Volvo. This car will be manufactured in China which will give them an advantage in taking a lead in the Asian markets. I believe Polestar's new car could be direct competition to Tesla, requiring them to possibly innovate more or lower prices to stay competitive. This is huge for the high-end electric car market because Tesla has not been faced with competitors such as Polestar and it will be interesting to see how Tesla handles this kind of competition
https://www.wsj.com/articles/volvo-unveils-a-direct-challenge-to-tesla-1508252078
I agree that it will be interesting to see how Tesla handles competition after not having any for so long. I think this will benefit the economy because it will force Tesla to make their prices competitive, which could mean lowering them, or build better, safer cars, which is a plus for the consumers. This could potentially be hurtful for Tesla because they could be forced to update/renovate their cars faster than they originally had planned. That could then lead to Tesla producing cars that have not been tested as many times as they would have if they still had no competition. In addition, I think it will be interesting to see the competition of markets between the two cars. This could easily turn into a race of who can get the bigger markets on their side the fastest, as well as who has the most brand loyalty.
ReplyDeleteThis is interesting when wondering what steps Tesla will take to remain competitive. In my opinion I think we are going to start seeing a lot more manufacturers producing electric cars. This is the future of the car industry and now is the time to try and gain market share. This industry is going to continue to grow and I will be interested to see the effects it will have on other car markets and the economies of where they are being produced.
ReplyDeleteI believe this car will be far more accessible for those in the middle class, unlike Tesla, which is known for having high price points. It will still compete with Tesla in the electric car market, but most likely only with Tesla's lowest end model. This is due to the fact that Tesla is known for luxury and performance whereas this new Polestar sounds to be more of an affordable option with less perks. This could have some effect on net exports in the U.S economy if their products take off, as the U.S will have to import them from China.
ReplyDeleteIt seems like the new high performance electric Sedan will be more affordable for the average person. Tesla's are luxurious cars that only a high income person could afford. It could potentially benefit Tesla's by making charging stations more common if there are more electric car options. If more charging stations are available, people will be attracted by the electric cars because they are convenient.
ReplyDeleteCompetition in the all electric car market could make for great innovation and improvement in the industry as companies try to out do each other. I will be interested to see the differences between Tesla's all electric car and Polestar's. When polestar comes out with their new car this will also grow the market for all electric cars because there will need to be more charging stations and more technicians to work on the electric cars. I am excited to see polestar's new car and how it changes the market.
ReplyDeleteCompetition will bring out the best in these companies. With the background that Tesla has in the market already, they may have an advantage. Tesla also has an advantage solely because of their name. Tesla is a well known name, which may lead to more trust in their brand. I don't know much about Polestar but they could capture the Asian market if the cars will be made in China. Competition will only make the product better, we'll see how it goes.
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