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From Rimac’s Electric Hypercars to Volkswagen’s Big EV Spend, Everyone’s Racing to Catch up with Tesla

In a world where human-caused climate change is increasingly damaging and harmful, a global race to produce electric, zero tailpipe emissions vehicles is a positive development. And just such a global race appears to be in the offing.

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We’ve heard a lot recently about how traditional automakers are spending boatloads of cash on electrical vehicles. Every week, we see new concept cars and planned production vehicles floated to the public in an apparent effort to show competitiveness in a key emerging industry. And the vaunted term that appears to be the sought-after standard is ‘better than Tesla.’ Ironically, this is a tacit admission that Tesla is presently the first horse in what appears to be a ramping race in mass electrical vehicle production.

Rimac’s Concept Two vs the Tesla Roadster 2.0

A recent example of this trend came in the form of the electric start-up Rimac’s Concept Two. Fresh off a 30 million euro fundraising round, Rimac is planning to produce a clean electric hypercar that’s capable of edging out Tesla’s Roadster 2.0 in a number of performance parameters. To be clear, the Roadster 2.0 is a revolution in automotive engineering — leaving former ICE hypercars in the dust in practically every performance specification that matters. But typical to the presently irresistable lure to compete with (or to appear to compete with) Tesla, Rimac attempts a one-up.

(Rimac’s Concept Two is another all electric hypercar that leaves fossil fuel based vehicles in the dust. But can it outsell Tesla’s Roadster 2.0? Image source: Commons.)

Concept Two boasts a stupendous 1,914 horsepower. And its 1425 kWh battery pack can push the car from 0-60 in 1.85 seconds while achieving a top speed of 258 miles per hour. This acceleration and speed edges out Tesla’s Roadster 2.0. But only just.

Of course a big underlying question here — is how many will Rimac build and for how much of an asking price? Rimac produced another electric hyper car (with far less compelling capabilities) — the Concept One during 2013 to 2014. Eight were ultimately built. In contrast, the Roadster 2.0 is a hypercar that’s starting at around 200,000 dollars (which is rather inexpensive for a car that can blow the likes of Lamborghini out of the water) and will likely produce hundreds to thousands.

Can Legacy Diesel Volkswagen Catch Tesla by Spending Big?

Another automaker that’s trying to catch up to Tesla is Volkwagen. Globally, the world’s largest automaker, the company appears to be setting aside 50 percent of its slated investment capital in an effort to produce a massive line of electrical vehicles. Its stated goal is to have an electric version of every model and to sell 5 million EVs annually by 2025. And the company is apparently willing to spend 60 billion dollars to achieve it.

Volkswagen is also investing in not one but 16 battery production facilities. And it states that it will be producing one new hybrid, plug in hybrid, or all electrical vehicle per month by next year. These are major goals. One that is in stark contrast to the present reality in which Volkswagen currently produces just one all-electric mass market vehicle — the E-Golf. And that, admittedly capable, attractive and well-priced, EV is selling at rather lower rates than Nissan’s popular Leaf EV.

(Volkswagen’s E-Golf is presently its only all-electric model. But the company plans a big surge into the EV market over the next couple of years. Image source: Volkswagen.)

In other words, despite big investments and big stated plans, Volkswagen is presently just barely on the EV leader board, if that. This puts the company at a pole position in the EV race far behind Tesla in 2018. And major investments and innovations will be required for it to catch up.

We’ve heard big EV promises from other traditional automakers before. And those like Volvo and Ford appear to have struggled with legacy issues in their stated attempts to put EVs on a fast track. One such issue that could hamper Volkswagen is the fact that it invested heavy sums in diesel vehicle technology during the 70s and 80s. As a result, the carmaker will have to overcome a decent amount of institutional inertia to jump into an EV leadership position. Pollution and emissions scandals plaguing the company have helped to spur its EV drive. But a history of profit-making selling polluting cars may inject a degree of cynicism into the company’s leadership. So self-sabotage is something to look out for here.

If Volkswagen manages a major internal transformation and if its engineers are capable of producing market EVs with mass appeal, then it could take a huge share of the emerging EV market and surge to match Tesla sales during 2019-2021 while possibly surpassing it by 2022-2023. Perhaps. But there’s a lot of hurdles for Volkswagen to overcome before gets there, all promises and talking aside.

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