“You don’t need to have a hundred-year legacy in the automotive industry to define what the next generation of transportation needs to look and feel like.”
This comes from the chief engineer of up-and-coming car-maker Faraday Future Nick Sampson, and he’s absolutely right.
Faraday is just one example of a new company that has broken into an old market and made its mark.
You see, for a long time, the world relied on the same handful of car companies to cover transportation demand. It wasn’t a market that was easily broken into.
But the breaking has happened. And while it didn’t necessarily start with Tesla Motors, the company has certainly been the most successful entrant.
And it did it by playing on a niche market that hadn’t yet found its feet: electric vehicles.
Tesla has progressed from expensive sports cars to its mass-market Model 3, which will hopefully be available for purchase in 2018. The car will be an averagely-priced $35,000.
But of course the problem with breaking into an established market is that its members aren’t likely to just let you come in and take over.
So many of the largest car companies in the world are working on their own EV’s, putting their own well-known brands on the niche. One of the most concerning for Tesla is Chevy’s Bolt, which will be out later in 2016 and cost a competitive $30,000.
Aside from the lower cost, Tesla will also have to compete with car makers who are already experienced mass-producers. The EV company has a history of production problems, though it hopes its coming Gigafactory in Nevada will help with that.
Faraday Future is also working on its own Nevada factory to help scale-up production of its first car; this factory is set to be online by 2018.
It’s a race to gain the largest share in the niche market of EV’s, and new companies are joining in every day.
Google and Apple, tech giants though they are, each have a car in the works already. Apple has been more hesitant to admit its intentions, but Google’s cars have already seen real world tests.
And a few start-ups are even coming forward with new technologies, such as Elio Motors with its three-wheeled car (pictured above), and Local Motors with its 3D printed car.
The tech is only going to get crazier from here. The strong, established car market of old is no more.
To continue reading about the new niche vehicle market, simply click here to read the NBC article.
Until next time,
A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
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