Elon Musk has revealed which Tesla’s biggest competitor is: it’s not a car manufacturer

Tesla’s arrival in the automotive sector was a real revolution, especially for traditional brands, which saw how a new competitor began to impose its conditions. It is therefore easy to imagine what the company’s great rival would be, given that the name would be among the classic producers. However, Elon Musk has his eyes set a much bigger and more ambitious battle.

The answer to the question is much simpler when you consider that Tesla is not a company dedicated to the assembly of vehicles, since its component points of difference to hardware and software.

Which implies that the company does not specialize in vehicle manufacturing and pours a huge amount of resources into other areas. Furthermore, the company’s mission is accelerate the transition to renewable energies. This goal is not limited to electrification of the car fleet.

So it’s no surprise that Tesla’s main competitor for Elon Musk is not another automaker, but Tesla itself. Aramco, one of the largest oil companies in the world which is based in Saudi Arabia.

Aramco is a Saudi oil, gas and petrochemicals company – owner of 69% of SABIC – with origin and headquarters in Dhahran, which employs 76,000 people worldwide.

For Elon Musk, when Tesla manages to overtake Aramco, that will be the day “we know the future will be positive for the Earth”. She commented on it – as usual – on Twitter, replying to another person.

Add to this that while much of the auto industry is accelerating their efforts to electrify their cars, that doesn’t mean they are Tesla’s competitors. This is a position that could change in the future when all vehicles are electric. But for now, all companies are embarking on a similar transformation path.

Further back comes Volkswagen, the traditional manufacturer that is investing most of its capital in its electrical transformation. In turn, Ford is looking to launch many electric or Stellantis models over the next few years, which with all its brands will put on the market an offer that will cover all needs.

Aramco currently has a market capitalization of $ 2.431 billion. While Tesla is the car manufacturer with the highest market value: 786,000 million. This highlights the big difference between the two.

The day Tesla outperforms Aramco and other oil companies in terms of market capitalization, it can be understood that the market places greater value on the creation and use of renewable energy products. It will be the consequence of a general philosophical change in the world.

Tesla’s successes

With the launch of Tesla model SAt the beginning of the last decade, Tesla proved that it was possible to produce a luxury vehicle that could compete with other brands, even if it were 100% electric. It was 2012, when no one imagined it could happen.

With the Tesla Model 3 upped the ante and managed to prove that an attractive electric vehicle can be produced on a large scale, good value for money, with a long range, good space and interesting for different regions.

SL