GM has revenue of around USD 150B. VW of around USD 260. Tesla's was USD 20B in 2018. So compared to revenue, Tesla spends much more on R&D. And don't forget that a lot of the traditional car manufacturers' R&D is spent on combustion engine improvements and other tech that is not related to EVs whereas Tesla is only spent developing EV tech. Further, Tesla has been developing EV tech for 17 years now, the last 8 years at some scale. The traditional car manufacturers have only just begun in earnest 3-5 years ago.
I do agree that Tesla isn't investing that heavily in R&D but they also cannot afford to. They are not turning profits. And they are already 5-10 years ahead of many competitors on tech, so I think it's wise to invest in production capacity instead. This year and in 2021, VW, GM, Mercedes, BMW etc. are getting into the EV market with cars that in specs seem to be competing with Tesla's 2012 model S.
The most important spec right now is price and range. None of the old companies are close to delivering competing range at a competing price. None of them have a charging network or battery efficiency or battery production capacity close to what Tesla has.
>So compared to revenue, Tesla spends much more on R&D
No, they don't spend "much more".
Old, dying GM and high-flying, take-over-the-world Tesla spend nearly identical amounts as a percentage of revenue. How can that be possible? One is building factories and semi-trucks and solar roofs and AI chips and robo-taxis and "ramping up investment" and the other is going out of business (so I hear).
>None of them have a charging network or battery efficiency or battery production capacity close to what Tesla has.
Tesla arguably makes the best EV on the market right now, that's true. But this idea that no one wants anything else, once again, flies in the face of the data. Competitors are selling well all over the world. And that's what we want, isn't it?
>None of them have a charging network
The charging network was a genius way to get people to buy EVs at time when range anxiety was an issue. It was one of Elon's best moves.
But the days of it being a real competitive advantage are almost gone. Car companies don't own gas stations. It's cost center. Did you see the lines over the Thanksgiving and Christmas holidays? Who wants that?
I do agree that Tesla isn't investing that heavily in R&D but they also cannot afford to. They are not turning profits. And they are already 5-10 years ahead of many competitors on tech, so I think it's wise to invest in production capacity instead. This year and in 2021, VW, GM, Mercedes, BMW etc. are getting into the EV market with cars that in specs seem to be competing with Tesla's 2012 model S.
The most important spec right now is price and range. None of the old companies are close to delivering competing range at a competing price. None of them have a charging network or battery efficiency or battery production capacity close to what Tesla has.