We’ve all heard of Tesla and its hyped-up story tales. The company’s growth in the recent decade has been mind-boggling, as it amassed billions in revenue and still dominates the electric car market! Furthermore, to fuel their electric cars, they have littered countless supercharges all around the US. Just take a look at the sheer amount of superchargers you see on the map!
After studying Tesla’s rapid growth and domination, however, there arises a question: have they reached the ceiling at this point? Well, there isn’t much growth potential at the moment. They have already set superchargers everywhere, they lead the market and there are plenty of customers ready to buy a Tesla! If you think about it, the only thing they have left to do is come up with new cars and sell them. But wait! I know what you’re thinking. Tesla only dominates the U.S; the other nations except for the whole of Europe drive anything but Teslas.
Thus, the only gigantic leap that Tesla can make is catering to nations outside the U.S.
However, the king of one nation isn’t the king of another. Tesla faces incredible competition in different parts of the globe. Geely and Nio from China, BMW, and Daimler AG from Germany are just a few competitors. But what about developing countries? Expanding in developing countries with rising gas prices is a groundbreaking idea! And third-world countries don’t have competitors right? Wrong! Excluding Africa, the first third-world country that comes to mind is India. But now, even India has an electric revolution.
The first competitor:
Ola, a software company with an uncanny resemblance to Uber, has announced the most mind-blowing and seemingly eco-friendly product. And to cater to the 1.3 billion people, they have also launched a gigantic factory, and their superchargers are on the way as well. They just need to iron out a few obstacles! And how big is Ola, you ask?
Well, according to wikipedia.com,
“The Ola company is based in Bengaluru, Karnataka, India. As of October 2019, Ola was valued at about US$6.5 billion.”
But how did this company, which started in India, raise so much capital to not only grow big but also set up a $327 million electric scooter factory in south India?
The answer is simple! The major investment giant Softbank, which quite literally gambles on everything, provided the funding.
A different choice of transport:
The car market in India is more saturated than ever, and with competitors like Toyota, Hyundai, Tata, and Mahendra nobody stands a chance. The only way to start an electric revolution in India is to target a type of vehicle that is mundane and has been the same for more than a decade. There has to be one revolution to back up the second one; which is exactly what Ola did. They targeted the scooter market!
But wait, why scooters?
No matter what corner of the globe you live in, it will take you at least 15 minutes to spot a second scooter. However, the Indian transportation industry is completely different. Since most of the Indian population comprises millennials who belong to the middle class, they need the most affordable vehicle there is. Therefore, the demand is also shooting through the roof. You would be surprised to know that 2 in three households in India own two-wheelers and more than 35% of those two-wheeler sales include scooters. And what’s more affordable to manufacture than a scooter? Nothing! Scooters are worth a dime a dozen in India. An average scooter will run you about 60,000 rupees, which is just 816.04 dollars!
While scooters are the most affordable vehicle in India, they are also the most boring of all. In terms of engine, design and features, close to nothing has changed in a decade. The only factor that has changed is price. Everything otherwise is more or less the same. So it doesn’t come as a surprise that Ola decided to revolutionize this vehicle. Furthermore, scooters are also extremely easy and less time-consuming to manufacture. In fact, with the help of Ola’s new gigafactory, they can produce 1 scooter per 4 seconds!
Tesla’s lost shot at doing something new:
Tesla keeps experimenting beyond cars. From flamethrowers, a yacht prototype, solar power roof tiles to power walls: they have done everything. And this isn’t necessarily a waste of time. Tesla’s experimental attitude could’ve worked wonders if they tried making a scooter. Now, unfortunately, Tesla has no choice but to break through the webs of the Indian car market!
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If you wish to know more about Elon Musk, I recommend reading ‘Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future