Traditional car companies are moving away from petrol engines, prompted by changing consumer tastes, ever more urgent calls for action on climate change, and ensuing government rulings.
Tesla has won so far because it was ahead of the curve, it has had the luxury electrical car market almost to itself until now.
Mercedes, BMW, VW and others are now getting their act together and can go to school on Tesla’s mistakes and lessons.
The German, Japanese and indeed the big American auto firms have been around a while for good reason. They are really good at making cars.
As a car driver one problem with Tesla cars, aside from their price is this: they look boring.
From a practical point of view, Tesla does not have enough European presence.
Which means they are likely to run into all sorts of problems with transporting their wares and with tariffs.
Moreover, if you have an accident in a BMW, the dealership up the road can get you the replacement parts you need very quickly. It might take Tesla months.
One thing Tesla has benefitted from is massive flows into ESG funds – those that invest in companies that have good environmental, social and corporate governance credentials.
That favouritism will unwind once Mercedes and the rest are no longer making petrol vehicles.
So congrats to Elon Musk. Enjoy that $130 billion. Spend it while you can.
