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View Poll Results: Is Tesla the World's Most Important Automaker?
Yes 4 17.39%
No 16 69.57%
Maybe 2 8.70%
Not Sure 1 4.35%
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World's Most Important Automaker

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Old 06-20-14, 04:33 PM   #1
Hoovey2411
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Default World's Most Important Automaker

Normally I'd put this into the Tesla thread but a question arises from this article. Is Tesla the most important automaker in the world? Do you agree with Morgan Stanley? Do you have another suggestion as to the worlds most important automaker, please read the article and discuss below!



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Tesla is now most important automaker in world, Morgan Stanley says

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Could Tesla Motors be the world’s most important car company?.

Morgan Stanley Research analyst Adam Jonas makes that argument in a new report to investors.

“Not even two years after the delivery of the first Model S, Tesla Motors has transformed from fledgling start-up to arguably the most important car company in the world. We are not joking,” Jonas wrote. “Tesla is also emerging as an emblematic force in America's effort to foster high tech manufacturing job growth.”

Here’s why.

Tesla has gone from zero to hero with automotive suppliers, which once shunned the Palo Alto, Calif., car company.

Jonas recently dined with a senior executive at one major supplier and said the dinner talk centered on what Tesla does differently in terms of electrification, connected cars and autonomous vehicles. Now suppliers are considering developing dedicated lines and facilities just for Tesla’s business.

Rival automakers derided now-failed start-ups such as Fisker and Coda, but they see Tesla as a true competitor.

General Motors has a “Team Tesla” devoted to the development of long-range electric vehicles like Tesla’s Model S sedan, Jonas said.

“A BMW engineer recently explained to us how Tesla's presence has helped reinvigorate the spirit of automobile innovation that was beginning to run stale, further testifying that BMW will be a stronger company longer term because Tesla is around,” he said.

Tesla is having a positive effect on the U.S. economy.

Five states are developing incentive packages to land Tesla’s proposed giant $5 billion "gigafactory" battery facility, a project that could create 6,000 manufacturing and technical jobs, Jonas said.

A “governor would need a very good reason to say no to a Tesla factory,” Jonas said.

Including the battery factory and expanded auto production at its factory in Fremont, Calif., Jonas sees Tesla’s U.S. employment rising from about 6,000 workers today to as many as 20,000 within seven years.

That would indirectly support more than an additional 100,000 U.S. jobs.

It’s “GDP moving stuff,” Jonas said.

This is especially important to California, Tesla’s home state. It already has the automaker’s headquarters, the auto factory and is in the running for the battery plant, although some think that is a long shot.

Tesla is uniquely America.

Tesla also establishing itself as the “most American made car on the road, pushing 90% U.S. content,” according to Jonas. That’s more than such American pie vehicles as the Ford F-150 and Chevy Silverado pickup trucks, he said.

This all means that investors should look at Tesla as more than a traditional auto company. Jonas has a price target of $320 for the automaker’s stock. That valuation implies that Tesla will have slightly less than 1% of the global auto market by 2028. It has traded between $225 and $230 for most of the past week.

There are risks.

Tesla is guaranteeing the value of its Model S in a lease-finance transaction. If the price of used Teslas fall short of the company’s estimates, it could lose a lot of money.

Tesla remains dependent on key government programs such as environmental credits and federal and state incentives for people who purchase electric cars.

Those could go away. Lawmakers, for example, might decide not to give wealthy consumers as much as $10,000 in federal and state benefits to purchase a car that starts around $71,000 and easily crosses the $100,000 range depending on options and features.

Finally, the potential for Tesla to expand into non-automotive related business such as using its battery technology for energy storage devices exposes the company’s operations to untested cost, competitive and regulatory forces, Jonas said.

http://www.latimes.com/business/auto...620-story.html
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Old 06-20-14, 05:42 PM   #2
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Tesla remains dependent on key government programs such as environmental credits and federal and state incentives for people who purchase electric cars.

The government crutch,I would like my tax dollars back please....
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Old 06-20-14, 05:53 PM   #3
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Tesla does have some interesting technology and high-quality, long-range batteries for their cars, but I wouldn't consider them the world's most important auto maker right now. Their prices are too high for most car buyers, and they generally appeal to a relatively small slice of the auto-buying public.
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Old 06-20-14, 06:17 PM   #4
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Toyota is.

That said, if they come along with a 6 or 7 vehicle lineup of electrics that have 400 mile ranges and cost the same as gas equivalents, then maybe we could talk about their importance. I see one Tesla every 2 weeks and I drive 750 miles a week in a high population area. I know we're not debating volume but it does go to show that it is a car only for the top 1-2% of the population, and of those, still only a small portion want an electric.
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Old 06-20-14, 06:18 PM   #5
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Tesla is leading the future of cars, so yes it is.
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Old 06-20-14, 08:04 PM   #6
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Tesla is delivering genuine innovation, will soon have a full model range, is arguably the leading alternative energy automaker, has just open sourced some key patents, and is a genuine American automotive success story. I'd say yes.
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Old 06-20-14, 08:28 PM   #7
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This whole article, IMO, is more hyperbole than fact. The intense competition between automakers today, the global nature of the industry, and what each company or corporation contributes to that industry, has made the former concept of "'most important" redundant today. This not the 1960s, when GM owned more than half of the market, and everyone else was clearly overshadowed.

Just consider the big auto shows, for example. If one company was "most important", then the floor-space for displays wouldn't be divided up so much. Although it is true that the "Big Four"...Toyota, GM, Ford, and Fiat/Chrysler...get much of the floor space at the big American shows, in Europe you also have numerous brands that are not available stateside....and some, like Buick, that are not sold in Europe at all.
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Old 06-20-14, 08:31 PM   #8
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With all the driving aids in an S-class and the electric offerings from Nissan (forget Mitsubishi) and the BMW i division, there is plenty of leading innovation from these automotive companies. Plus Toyota's huge global (and innovative) hybrid footprint built over the last 15 years is nothing to ignore.
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Old 06-20-14, 10:02 PM   #9
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I would disagree with the article. Tesla is important and beat a lot of odds, but most important automaker? probably not.

In a world without Tesla right now, it wouldn't be that much different of a world now. A world without Toyota right at this second? Much different landscape. Tesla probably employs a handful of people compared to all the factory workers of the big 3. The same goes to suppliers that depend on these companies. The reality is that Tesla is so small in the automotive landscape that it doesn't matter if they exist. Their powertrains are not anything that cannot be recreated. They are opening patents to everyone.

Im a firm believer that the electric car is just a midpoint to the end solution, so Tesla will not be prominent in the distant future
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Old 06-20-14, 11:55 PM   #10
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The position in the article isn't based on scale or sales volume. It's based on innovation and current industry thought leadership. And right there is where tesla is doing things much, much larger manufacturers aren't.
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Old 06-21-14, 08:54 AM   #11
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Quote:
Originally Posted by swajames View Post
The position in the article isn't based on scale or sales volume. It's based on innovation and current industry thought leadership. And right there is where tesla is doing things much, much larger manufacturers aren't.
I think most of us get the argument, but Tesla still isn't the most important based on their innovation.
There's a reason Toyota has all but ignored full electrics. Most people don't want them. They aren't fully practical. And on and on. They've sold millions of hybrids though that do make sense.

Nissan builds what could be said to be a more important electric than Tesla. It's a practical 5 passenger hatch priced for average people, although with a shorter range. Still, the Leaf barely sells. Is Tesla really that much more innovative when they build one that costs 5 times more?

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Originally Posted by RXSF View Post
I would disagree with the article. Tesla is important and beat a lot of odds, but most important automaker? probably not.

In a world without Tesla right now, it wouldn't be that much different of a world now. A world without Toyota right at this second? Much different landscape. Tesla probably employs a handful of people compared to all the factory workers of the big 3. The same goes to suppliers that depend on these companies. The reality is that Tesla is so small in the automotive landscape that it doesn't matter if they exist. Their powertrains are not anything that cannot be recreated. They are opening patents to everyone.

Im a firm believer that the electric car is just a midpoint to the end solution, so Tesla will not be prominent in the distant future
I agree with this point. Electric cars are NOT the future. They are the past. They are just a small segment alternative for a little while until we settle on the true replacement for ICE powertrains. Hydrogen, for example, seems much more likely. Whatever the alternative is, it has to do everything gas cars can. Cheap, safe, reliable, and unlimited range.
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Old 06-21-14, 09:45 AM   #12
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Hydrogen is so much more likely? Riiiiiiiiiiight.
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Old 06-21-14, 10:23 AM   #13
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Great responses thus far.

Pushing for a cleaner energy, American assembled, and Factory Direct sales are some admirable and important things in my opinion. I personally don't believe however that any one manufacturer is the most important because many have innovated the industry, many have a rich heritage and pedigree and many will continue to strive for excellence. That said, competition fuels the drive. If there's no pressure, the passion ceases and becomes stale. So while Tesla is the current 'IN' it's not going to save the world, it's going to take everyone.
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Old 06-21-14, 10:56 AM   #14
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Quote:
Originally Posted by swajames View Post
The position in the article isn't based on scale or sales volume. It's based on innovation and current industry thought leadership. And right there is where tesla is doing things much, much larger manufacturers aren't.
Whose to say Toyota and other manufactures aren't innovating? They could have huge things behind closed doors but things that never see the light of day. Kind of like Google's X lab. Things that the world is not ready for or aren't feasible yet on scale.

Im a huge Tesla fan but just because Tesla has an electric car that can go 200+ miles does not mean that they are the only ones who can make one. Stick a bigger battery in it, and watch it go farther.

I worry that Tesla is building all these superchargers around the world will become obsolete in the future. They are only tesla specific and currently only model S specific. So much resources wasted if Tesla ever goes out of business or stops building electric cars. Its kind of like building a gas station for a single brand.
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Old 06-21-14, 11:16 AM   #15
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I think Toyota is the most important automaker. I can go to pretty much any country in the world and a get Toyota vehicle. I know what the reliability and build will be like and generally Toyota is really good to the buyer.

I can't say I would want to trust Ford or GM is some countries.
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