Home > Resources > Articles > Tesla's disruptive success in competitive car-making and how it can airlift Boeing

Tesla's disruptive success in competitive car-making and how it can airlift Boeing

AJINKYA BAGADE | January 28, 2020 | 368 views



  • Ferragu boosted his price target on the equity to $800, implying that the stock could gain another 57%, which fuelled Tesla's most recent success.

  • Many reports suggested that Tesla is not only attracting customers from the all-electric-luxury vehicle market but also the entire luxury car market.

  • Musk has a knack of making safe, cost-saving, environmentally friendly products and he might just be the man to save Boeing.


Tesla's success in the recent months has defied investors' low confidence in Elon Musk and his company, as it outpaced long-established car companies like Ford and GM in market capitalization, even though their businesses dwarf Tesla’s. Last year Ford and GM delivered 2 million vehicles in the US, while Tesla delivered 367,500 around the world.


Tesla reportedly manufactured over 100,000 vehicles and delivered even more in the fourth quarter of 2019, ending the year on a higher note.

“ When you deliver more cars than you produce, you get into your bank more cash than you spent. ”

- Pierre Ferragu, analyst with New Street Research.


Even in the run of its success, analyst and investors remain skeptical about the company's ability to deliver profit. Tesla's history of missing deadlines and the fickle behavior of Elon Musk in recent times is termed as the possible reason for this skepticism. Some analysts continue to rank Tesla in the 'buy and sell' stock category, unusual for companies on Wall Street.

Tesla's winning streak


Tesla's market value reached surged at $104.5 billion, as it overtook the combined market capitalization of Ford and GM. Tesla has ousted German carmaker Volkswagen to become the world's second most valuable carmaker, as its share rose by 6% in early trading last Wednesday making it the highest valued automaker in the US. 

The soaring market value is the most recent Elon Musk accomplishment. Since its surprise return to profitability in October, the shares have doubled, mainly due to the solid vehicle-delivery in the fourth quarter and the optimism around its Gigafactory in Shanghai. Ferragu boosted his price target on the equity to $800, implying that the stock could gain another 57%, which fuelled Tesla's most recent success.

Tesla's Impact on the Automotive Industry


“ “I think it’s great to have good competition. We think that Tesla plays a very important role in the transition because they are paving the way. They showed that electric cars are working, that a fully electric car is the right solution. So, we appreciate that. ”

- Herbert Diess, CEO, Volkswagen.


Tesla has made a huge impact on car manufacturers in the U.S, and Musk's contribution to it is undeniable. Though their early difficulties like getting the cars out of the Fremont unit, missed deadlines and prioritizing Model X ahead of Model 3, Tesla has been successful in building a mindset of switching to EV vehicles. It is difficult to say where the automotive industry must have been with Electric Vehicles without the entry of Tesla.

For instance, Tesla's relentless effort to create its space in the automotive market with its futuristic EVs gave Volkswagen enough reasons to enter the EV market with MEB. With the EV revolution, Volkswagen was granted a chance to recover from its diesel cheating scandal broke in 2015. Since then, it has once again become one of the top car makers in the world and plans to become carbon neutral in all of its manufacturing activities by 2050.

Destroying the competition:


In 2018, Citron Research reversed its earlier prediction: "By the time this (Tesla's) product is even approaching market, there will be multiple other 200-mile range plug-ins that have been out for years," saying "Tesla is destroying the competition".

Then, many reports suggested that Tesla is not only attracting customers from the all-electric-luxury vehicle market but also the entire luxury car market. Tesla or Musk haters believe that one of the major car manufacturing companies will soon launch a 'Tesla-killer', but no one has yet to come closer to Tesla's high performing EVs.

Tesla's Model S promises to drive 370 miles before stopping for a charge. The closest that companies like Chevrolet, Jaguar, and Nissan have gone with their EVs is 240 miles.

2020 is deemed as the "year of electric cars" across Europe. Many of the leading car-makers are poised to present their EVs such as Ford's Mustang Mach-E, Nissan's Ariya, and Fiat's Jeep Wrangler. Tesla is already one of the best EVs selling companies in the continent, which is mainly due to the more high-powered battery tech and the number of risks taken.Tesla has been designing and improving its battery-powered cars built from the ground. It has taken the risk of making its batteries more denser and used different materials, which its traditional car-making competitors would not.

Even as traditional car-maker have stuck to hybrids models and had to go through federal scrutiny due to their EV batteries, Tesla's battery range has helped it to maintain a firm grip over the EV market. But it's not just the batteries that sell Tesla. The futuristic designs with features like autopilot have largely attracted crowds.

Learn More:   Where is all the Cybertruck merchandise? (Because it's everywhere but Tesla's site)

Can Musk's take off the landed Boeing?

 

In 2018, a video showed Tesla's Model X pulling Boeing's 787-9 Dreamliner.

Boeing has been struggling to get its 737 MAX aircraft in the sky since it got grounded worldwide after two crashes that killed 346 people. While a year has turned since the aircraft was grounded, Boeing now faces an investigation into other aircraft, an economic slowdown, distrust in the industry, and strong competition.

Elon Musk might just be the man to save Boeing. Musk is the mind behind Tesla's moving in a direction that it has. Innovating, taking the risk, and believing. Back in 2018, Musk had revealed big ideas for an electric plane. He described his aircraft to take off and land vertically and powered by an electric battery.

This might just be the turnaround Boeing is looking for. Working with Musk would give it much needed confidence and help create one of its safest, and most exciting products ever, while moving the world closer to a sustainable, zero-carbon economy.

Musk turned around Tesla fortunes from being at the edge to a $100bn market cap in one year. He has a track record of cost savings in aerospace too. With the SpaceX Falcon 9, Musk cut the rocket launch costs from $18,500 per kilogram to $2,720 per kilogram. Musk has a knack of making safe, cost-saving, environmentally friendly products. An electric Boeing aircraft will help its customers cut down fuel costs and making air travel cheap. An electric aircraft will save money on maintenance.

Handover Boeing to Elon Musk, already?

Learn more:

Elon musk says the bizarre-looking new Cybertruck from Tesla was 'inspired by games like halo' - here's how they compare

 

Spotlight

SCSK Corporation

A global IT service company, SCSK Corporation will utilize the strength of both firms to provide customers with a powerful one-stop support survice, from system integration, IT infrastructure implementation, and IT management, through to BPO and IT hardware and software slaes.

OTHER ARTICLES
SOFTWARE

Empowering Industry 4.0 with Artificial Intelligence

Article | August 8, 2022

The next step in industrial technology is about robotics, computers and equipment becoming connected to the Internet of Things (IoT) and enhanced by machine learning algorithms. Industry 4.0 has the potential to be a powerful driver of economic growth, predicted to add between $500 billion- $1.5 trillion in value to the global economy between 2018 and 2022, according to a report by Capgemini.

Read More
FUTURE TECH

How Artificial Intelligence Is Transforming Businesses

Article | July 26, 2022

Whilst there are many people that associate AI with sci-fi novels and films, its reputation as an antagonist to fictional dystopic worlds is now becoming a thing of the past, as the technology becomes more and more integrated into our everyday lives. AI technologies have become increasingly more present in our daily lives, not just with Alexa’s in the home, but also throughout businesses everywhere, disrupting a variety of different industries with often tremendous results. The technology has helped to streamline even the most mundane of tasks whilst having a breath-taking impact on a company’s efficiency and productivity

Read More
FUTURE TECH

The advances of AI in healthcare

Article | July 14, 2022

With the Government investing £250 million into the project, the Lab will consider how to use AI for the benefit of patients – whether this be the deployment of existing AI methods, the development of new technologies or the testing of their safety. Amongst other things, the initiative will aim to deliver earlier diagnoses of cancer. It is estimated that in excess of 50,000 extra patients could see their cancer being detected at an early stage, thus boosting survival rates. More specifically, a study has shown that AI is quicker in identifying brain tumour tissue than a pathologist.This would have a positive knock-on effect in other areas, such as enabling money to be saved (that otherwise would have been spent on further treatment) and reducing the workload of staff (at a time when there is a crisis in NHS workforce numbers).

Read More

Three Keys to Successful AI Adoption

Article | February 10, 2020

Over the past several years, we have begun to see the emergence of artificial intelligence (AI) in businesses. According to a study for the AI Index 2019 Annual Report, more than half of respondents report their companies are using AI in at least one function or business unit. Thirty percent report they have AI embedded across multiple areas of their business. As businesses continue to develop their understanding of what is possible with AI, we can expect to see a continued increase in AI adoption.

Read More
SOFTWARE

How are Low-Code and No-Code Apps Fuelling Digital Transformation?

Article | August 8, 2022

The next step in industrial technology is about robotics, computers and equipment becoming connected to the Internet of Things (IoT) and enhanced by machine learning algorithms. Industry 4.0 has the potential to be a powerful driver of economic growth, predicted to add between $500 billion- $1.5 trillion in value to the global economy between 2018 and 2022, according to a report by Capgemini.

Read More
FUTURE TECH

Analyzing the Potential of Digital Business Models

Article | July 26, 2022

Whilst there are many people that associate AI with sci-fi novels and films, its reputation as an antagonist to fictional dystopic worlds is now becoming a thing of the past, as the technology becomes more and more integrated into our everyday lives. AI technologies have become increasingly more present in our daily lives, not just with Alexa’s in the home, but also throughout businesses everywhere, disrupting a variety of different industries with often tremendous results. The technology has helped to streamline even the most mundane of tasks whilst having a breath-taking impact on a company’s efficiency and productivity

Read More
FUTURE TECH

The Revolutionary Power of 5G in Automation and Industry Digitization

Article | July 14, 2022

With the Government investing £250 million into the project, the Lab will consider how to use AI for the benefit of patients – whether this be the deployment of existing AI methods, the development of new technologies or the testing of their safety. Amongst other things, the initiative will aim to deliver earlier diagnoses of cancer. It is estimated that in excess of 50,000 extra patients could see their cancer being detected at an early stage, thus boosting survival rates. More specifically, a study has shown that AI is quicker in identifying brain tumour tissue than a pathologist.This would have a positive knock-on effect in other areas, such as enabling money to be saved (that otherwise would have been spent on further treatment) and reducing the workload of staff (at a time when there is a crisis in NHS workforce numbers).

Read More

Three Keys to Successful AI Adoption

Article | February 10, 2020

Over the past several years, we have begun to see the emergence of artificial intelligence (AI) in businesses. According to a study for the AI Index 2019 Annual Report, more than half of respondents report their companies are using AI in at least one function or business unit. Thirty percent report they have AI embedded across multiple areas of their business. As businesses continue to develop their understanding of what is possible with AI, we can expect to see a continued increase in AI adoption.

Read More
MORE ARTICLES

Spotlight

SCSK Corporation

A global IT service company, SCSK Corporation will utilize the strength of both firms to provide customers with a powerful one-stop support survice, from system integration, IT infrastructure implementation, and IT management, through to BPO and IT hardware and software slaes.

Related News

INNOVATION, SOFTWARE, FUTURE TECH

Postman Makes Building Software Accessible to All, Announces Postman Flows

Businesswire | March 23, 2023

Postman, the world’s leading API Platform, today announced the general availability of Postman Flows, a visual tool for creating API applications. Postman Flows simplifies building software by using APIs as the building blocks, allowing anyone to produce workflows, integrations, and automations in a collaborative environment without needing to write a single line of code. With Postman Flows, the company is leaning into demand for a low-code solution that lets people build software without extensive programming experience. Using tens of thousands of readily available APIs, business users can manipulate data with API calls and create workflows. This allows everyone, from financial analysts and customer service agents to senior business leaders, to devise solutions to problems they encounter every day. “APIs are the building blocks of modern software. However, those blocks have not always been accessible to everyone,” said Abhinav Asthana, co-founder and CEO of Postman. “We are on a mission to change this. With more than 25 million users across every continent, we believe Postman can accomplish this at a massive scale so that any user, anywhere, can build and participate in today’s API-first world.” Postman Flows makes it simple to construct API applications without needing to write code or fiddle with a command line. Inspired by the concept of “blocks” to form and visualize an application, users simply drag the blocks, build the application, and deploy the workflow. And Postman Flows leverages artificial intelligence (AI) to enable users to manipulate data returned by APIs by simply typing out what they want to do in natural language, making it easy for all. Hundreds of thousands of users have already built API applications using Postman Flows during its beta program. “Postman Flows is the sweet spot for us, as it gives our non-technical team members a low-code tool to build, document, test, and implement an API workflow,” said Thomas Schlegel, distinguished engineer at Built Technologies. “We can accomplish tasks faster with fewer errors, and we look forward to maximizing these benefits across the organization.” “Postman Flows makes prototyping and testing easy,” said Sid Verma, partner engineer at Notion. “Building connections visually is more intuitive and clear, which results in spending more time building and less time digging through code. I’m excited to see the future of Flows and Notion!” About Postman Postman is the world’s leading API platform, used by more than 25 million developers and 500,000 organizations, including 98% of the Fortune 500. Postman is helping developers and professionals across the globe build the API-first world by simplifying each step of the API lifecycle and streamlining collaboration—enabling users to create better APIs, faster. The company is headquartered in San Francisco and has an office in Bangalore, where it was founded. Postman is privately held, with funding from Battery Ventures, BOND, Coatue, CRV, Insight Partners, and Nexus Venture Partners.

Read More

INNOVATION, SOFTWARE, FUTURE TECH

Fivetran Launches Fivetran Lite to Accelerate SaaS Connector Development and Seamless Data Integration

Fivetran | February 09, 2023

Fivetran, a world leader in automated data movement, has launched Fivetran Lite, a new offering that brings more SaaS connectors to market faster. The Lite connectors are backed by Fivetran's commitment to high quality, data integrity, and security, and they can be developed in a fraction of the time it takes to develop Fivetran's standard connectors. The Lite connectors meet the increasing demand for managed connectors for a growing number of SaaS services. The By Request Program enables Fivetran to build new Lite connectors in as little as 30 days, and the company expects to introduce hundreds of new connectors over the next year, bringing the total number of fully-managed connectors to over 500. Head of Product at Fivetran, Alexander Lovell, said, “Our customers, like all enterprises, are under enormous budgetary pressure and are looking for every available way to streamline their operations and cut infrastructure costs. Developing homegrown connectors and maintaining data pipelines is a heavy economic burden they do not need to take on.” (Source - Businesswire) Fivetran Lite connectors provide consumption-based pricing and follow the February 1, 2023, launch of Fivetran's new free plan, which is aimed at growing businesses with low data volumes. This commitment to creating Lite connectors that provide both data integrity and security in a fraction of the time it takes to develop Fivetran standard connectors is part of Fivetran’s effort to meet the increasing demand for managed connectors for SaaS applications. About Fivetran Fivetran automates data movement in and out of cloud data platforms. It automates the most time-consuming parts of the ELT process, such as extracts, schema drift handling, and transformations, allowing data engineers to focus on higher-impact projects while maintaining total pipeline peace of mind. With 99.9% uptime and self-healing pipelines, Fivetran facilitates hundreds of leading brands around the world to accelerate data-driven decisions and drive business growth, including Autodesk, JetBlue, Conagra Brands, Lionsgate, Morgan Stanley, and Ziff Davis. Its headquarters are in Oakland, California, and it has offices all over the world.

Read More

INNOVATION, SOFTWARE, FUTURE TECH

Expert.ai Releases New Features for its Hybrid Natural Language Platform to Enhance NLP Workflow

expert.ai | February 08, 2023

On February 7, 2023, Expert.ai, a company specializing in AI for language understanding, released new features for its Natural Language (NL) platform, aimed at enhancing its purpose-built NLP workflow support. With the new features, Expert.ai's NL platform can find complex entities and their relationships, which helps it understand text better. The new features include more options for on-premise deployment and taxonomy management, the ability to store core data with Kubernetes (K8s), APIs that can be used with visual documentation, and knowledge graphs (KGs) that can be used to quickly find related ideas and connections. Chief Product Officer at expert.ai, Luca Scagliarini, said, "Organizations increasingly recognize the value of hybrid natural language as they can get to market faster, supporting a broader range of use cases with improved efficiencies and enhanced accuracy." She further added, "Practical and useful AI is no longer about the future; it provides enterprises with value now." Furthermore, she added, "We continue to expand the platform capabilities to enable our customers and partners to create new processes, solutions, capabilities, and offers that grow their businesses and impact their bottom lines." (Source - PRNewswire) The hybrid NL platform, which combines machine learning and symbolic AI, is made to help organizations find the most value out of their unstructured data, create new business models, improve time to market, and optimize processes. About expert.ai Expert.ai is a leading company in AI-based natural language software that offers a purpose-built platform to analyze and understand complex documents. It combines symbolic and machine learning to turn language into data and enhance business operations across various industries, including insurance, banking and finance, publishing, media, and defense. The company serves global businesses with offices in Europe and North America, and offers a range of on-premise, private, and public cloud offerings to simplify AI adoption.

Read More

INNOVATION, SOFTWARE, FUTURE TECH

Postman Makes Building Software Accessible to All, Announces Postman Flows

Businesswire | March 23, 2023

Postman, the world’s leading API Platform, today announced the general availability of Postman Flows, a visual tool for creating API applications. Postman Flows simplifies building software by using APIs as the building blocks, allowing anyone to produce workflows, integrations, and automations in a collaborative environment without needing to write a single line of code. With Postman Flows, the company is leaning into demand for a low-code solution that lets people build software without extensive programming experience. Using tens of thousands of readily available APIs, business users can manipulate data with API calls and create workflows. This allows everyone, from financial analysts and customer service agents to senior business leaders, to devise solutions to problems they encounter every day. “APIs are the building blocks of modern software. However, those blocks have not always been accessible to everyone,” said Abhinav Asthana, co-founder and CEO of Postman. “We are on a mission to change this. With more than 25 million users across every continent, we believe Postman can accomplish this at a massive scale so that any user, anywhere, can build and participate in today’s API-first world.” Postman Flows makes it simple to construct API applications without needing to write code or fiddle with a command line. Inspired by the concept of “blocks” to form and visualize an application, users simply drag the blocks, build the application, and deploy the workflow. And Postman Flows leverages artificial intelligence (AI) to enable users to manipulate data returned by APIs by simply typing out what they want to do in natural language, making it easy for all. Hundreds of thousands of users have already built API applications using Postman Flows during its beta program. “Postman Flows is the sweet spot for us, as it gives our non-technical team members a low-code tool to build, document, test, and implement an API workflow,” said Thomas Schlegel, distinguished engineer at Built Technologies. “We can accomplish tasks faster with fewer errors, and we look forward to maximizing these benefits across the organization.” “Postman Flows makes prototyping and testing easy,” said Sid Verma, partner engineer at Notion. “Building connections visually is more intuitive and clear, which results in spending more time building and less time digging through code. I’m excited to see the future of Flows and Notion!” About Postman Postman is the world’s leading API platform, used by more than 25 million developers and 500,000 organizations, including 98% of the Fortune 500. Postman is helping developers and professionals across the globe build the API-first world by simplifying each step of the API lifecycle and streamlining collaboration—enabling users to create better APIs, faster. The company is headquartered in San Francisco and has an office in Bangalore, where it was founded. Postman is privately held, with funding from Battery Ventures, BOND, Coatue, CRV, Insight Partners, and Nexus Venture Partners.

Read More

INNOVATION, SOFTWARE, FUTURE TECH

Fivetran Launches Fivetran Lite to Accelerate SaaS Connector Development and Seamless Data Integration

Fivetran | February 09, 2023

Fivetran, a world leader in automated data movement, has launched Fivetran Lite, a new offering that brings more SaaS connectors to market faster. The Lite connectors are backed by Fivetran's commitment to high quality, data integrity, and security, and they can be developed in a fraction of the time it takes to develop Fivetran's standard connectors. The Lite connectors meet the increasing demand for managed connectors for a growing number of SaaS services. The By Request Program enables Fivetran to build new Lite connectors in as little as 30 days, and the company expects to introduce hundreds of new connectors over the next year, bringing the total number of fully-managed connectors to over 500. Head of Product at Fivetran, Alexander Lovell, said, “Our customers, like all enterprises, are under enormous budgetary pressure and are looking for every available way to streamline their operations and cut infrastructure costs. Developing homegrown connectors and maintaining data pipelines is a heavy economic burden they do not need to take on.” (Source - Businesswire) Fivetran Lite connectors provide consumption-based pricing and follow the February 1, 2023, launch of Fivetran's new free plan, which is aimed at growing businesses with low data volumes. This commitment to creating Lite connectors that provide both data integrity and security in a fraction of the time it takes to develop Fivetran standard connectors is part of Fivetran’s effort to meet the increasing demand for managed connectors for SaaS applications. About Fivetran Fivetran automates data movement in and out of cloud data platforms. It automates the most time-consuming parts of the ELT process, such as extracts, schema drift handling, and transformations, allowing data engineers to focus on higher-impact projects while maintaining total pipeline peace of mind. With 99.9% uptime and self-healing pipelines, Fivetran facilitates hundreds of leading brands around the world to accelerate data-driven decisions and drive business growth, including Autodesk, JetBlue, Conagra Brands, Lionsgate, Morgan Stanley, and Ziff Davis. Its headquarters are in Oakland, California, and it has offices all over the world.

Read More

INNOVATION, SOFTWARE, FUTURE TECH

Expert.ai Releases New Features for its Hybrid Natural Language Platform to Enhance NLP Workflow

expert.ai | February 08, 2023

On February 7, 2023, Expert.ai, a company specializing in AI for language understanding, released new features for its Natural Language (NL) platform, aimed at enhancing its purpose-built NLP workflow support. With the new features, Expert.ai's NL platform can find complex entities and their relationships, which helps it understand text better. The new features include more options for on-premise deployment and taxonomy management, the ability to store core data with Kubernetes (K8s), APIs that can be used with visual documentation, and knowledge graphs (KGs) that can be used to quickly find related ideas and connections. Chief Product Officer at expert.ai, Luca Scagliarini, said, "Organizations increasingly recognize the value of hybrid natural language as they can get to market faster, supporting a broader range of use cases with improved efficiencies and enhanced accuracy." She further added, "Practical and useful AI is no longer about the future; it provides enterprises with value now." Furthermore, she added, "We continue to expand the platform capabilities to enable our customers and partners to create new processes, solutions, capabilities, and offers that grow their businesses and impact their bottom lines." (Source - PRNewswire) The hybrid NL platform, which combines machine learning and symbolic AI, is made to help organizations find the most value out of their unstructured data, create new business models, improve time to market, and optimize processes. About expert.ai Expert.ai is a leading company in AI-based natural language software that offers a purpose-built platform to analyze and understand complex documents. It combines symbolic and machine learning to turn language into data and enhance business operations across various industries, including insurance, banking and finance, publishing, media, and defense. The company serves global businesses with offices in Europe and North America, and offers a range of on-premise, private, and public cloud offerings to simplify AI adoption.

Read More

Events