GAME CHANGER: Analyst Warns Industry That Tesla Has The Potential To Render All Other Cars Obsolete

GAME CHANGER: Analyst Warns Industry That Tesla Has The Potential To Render All Other Cars Obsolete

Before introducing the second generation Autopilot hardware, Tesla CEO Elon Musk said that once the first truly self-driving car is available, all other vehicles without the technology will have a “negative value”.

Echoing the idea, Morgan Stanley analyst Adam Jonas said this week that they started warning their clients that if Tesla is successful in enabling fully self-driving capability on its current vehicles equipped with the second generation Autopilot hardware, it could render all other cars obsolete.

Fresh off his note about the Tesla Model 3’s self-driving capability giving ‘superhuman’ safety to drivers and be ’10x safer than current cars’, Adam Jonas went on CNBC yesterday to drive his point.
 


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LexSucksLexSucks - 3/29/2017 4:15:23 PM
+10 Boost
What a BS article. Unless mandated autonomous driving will never be accepted by folks who like to drive. So enthusiasts will abandon their cars for a tesla because of autopilot?


carloslassitercarloslassiter - 3/29/2017 5:20:46 PM
-5 Boost
This is happening, and it is happening fast. You don't have to like it, but you aren't going to have a choice in a few years.

I'm sure when automobiles were first introduced, guys like LexSucks insisted that they preferred riding horses and refused to ride in the infernal contraption.




TomMTomM - 3/29/2017 8:50:10 PM
+8 Boost
Oh nonsense - This may be happening - but the word FAST is simply not a part of the equation. There are over 253 MILLION cars and trucks registered in the USA today - and the average life of them is over 11 years.

Last time I looked - the average person cannot afford to buy a Tesla - even a Model 3 will be above their ability to afford. Since most people have to buy USED cars to make it affordable - (Used cars sell around 40 Million compared to about 17 million new ones) - it will take TIME for those features to infiltrate the used car market - and even then - those used cars will take time to get to the prices many people need for them to afford it. I expect that it will be at least a two decades before most cars have these features available - and even then - I suspect many will not purchase them.

The idea that all other cars would have a negative value is elitist at best - and ignores the people in this country who simply cannot afford a new car at all - but still have to drive to get to work. Now - when Tesla has these features in a car for less than $15,000 - which It NEVER will as new - maybe you can start to consider them taking over the market completely. Not in my lifetime!


MrEEMrEE - 3/29/2017 7:01:09 PM
-1 Boost
BMW realizes this and why they need to become a technology company.
Who knows, in the near future the fastest vehicle on the track may be driven autopilot.


2ndbimmer2ndbimmer - 4/1/2017 9:58:37 AM
+1 Boost
Exactly. Everyone at the Chicago auto show was pissed BMW only had their electric and plug in hybrid vehicles on display. Well, it is going to be the future of the automobile industry.
However, petrol vehicles will not have a negative value. There are those of us who like to drive and like to hear an exhaust note. The whole fun of off roading as well!


MDarringerMDarringer - 3/29/2017 7:10:21 PM
+5 Boost
Shall I??? Nah! Too easy.


mplsmpls - 3/30/2017 2:27:22 AM
+9 Boost
paid analyst by tesla ?


malba2367malba2367 - 3/30/2017 12:06:26 PM
+1 Boost
Tesla has a lot of advantages in the EV market. They have the most mature battery technology and the lowest cost per KWH. More importantly they have something similar to the "Apple Effect" they have a cult like following, they have an incredible brand and customers who are willing to overlook many flaws in the product. The biggest intangible benefit they have is a charismatic CEO who turns mundane product announcements into theatrical events. Remember that they got 400,000 people to put down money on a vehicle 1+ year prior to availability...No other car company could pull that off.

What they don't have is the ability to deliver product on time or manufacture vehicles profitably. They are taking steps on the manufacturing side by hiring some people who have a lot of experience in these things. Tesla definitely deserves some credit in that they are the first brand new automaker in many years, and they have gotten up to speed pretty quickly considering all of the technical, engineering and logistical know how required to build automobiles.

Another thing remaining to be seen is if they have the infrastructure in place to provide adequate service to all these new customers when the Model 3 is released.

If they can get the manufacturing and service aspects right with the Model 3 they will be basically unstoppable. At that point they will have almost unlimited access to capital and brand power that no other automaker has. If they botch the Model 3 launch then it could call into question everything about the company, and established competitors will have a huge opportunity to establish a foothold into the EV market and Tesla will largely be relegated to the very high end of the market (Model S/X) and a supplier of batteries to other carmakers


malba2367malba2367 - 3/30/2017 4:28:09 PM
+1 Boost
To anyone who thinks that EVs are not going to quickly become the future of automobiles look at the recent announcement by the company that basically invented the gasoline powered motorcar...Daimler plans to have 10 EV models within 5 years.


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