General Motors (GM), Ford Motor (F), and Stellantis N.V. (STLA), the traditional automakers, are currently facing an unprecedented strike by the UAW. In contrast, Tesla Inc (TSLA), the leading electric vehicle (EV) company, is reportedly making strides in revolutionizing EV manufacturing. Tesla’s stock has risen by 7% since the beginning of September, reaching $274.39 last week, and the company has experienced a more than 150% increase in stock price year to date. Meanwhile, BMW (BMWYY), the legendary German automaker, has announced the development of an electric version of its iconic high-performance car. As General Motors, Ford, and Stellantis struggle with negotiations, Tesla and BMW are confidently progressing towards their EV objectives.
Tesla’s Breakthrough in Manufacturing
According to Reuters, Tesla is on the verge of revolutionizing EV manufacturing through the use of a die-casting technique that allows for the creation of nearly the entire underbody of an EV as a single unit, as opposed to the approximately 400 components required in the conventional method. This manufacturing development, if successfully implemented, could significantly benefit the EV industry. Sources have indicated that using this technique, Tesla could reduce its EV manufacturing timeline from the usual three to four years to just 18 to 24 months. If achieved, this advancement will likely make it even more challenging for Tesla’s competitors to catch up.
BMW’s Exciting News
During a roundtable interview in Portugal, BMW’s product development chief, Frank Weber, confirmed the rumors surrounding the first electric BMW M3 sports sedan. Weber announced that the first electric BMW M3 will be built on BMW’s next-generation Neue Klasse platform around 2027. Earlier this year, BMW introduced the powerful and fast i7 M70 xDrive electric sedan and teased a quad-motor i4 electric model. However, the Neue Klasse, scheduled for 2025, will take EVs to a whole new level with a 30% increase in range, 20% faster charging, and a 25% improvement in vehicle efficiency. The electric M3 is expected to launch shortly after the start of Neue Klasse production. BMW is committed to making its Mini brand fully electric by the end of the decade and will invest £600 million (approximately $743 million) in its UK manufacturing facilities to support the production of two EVs: the Mini Cooper 3-door and the crossover Mini Aceman, both scheduled for release in 2026 at the Oxford manufacturing plant, which will exclusively produce EVs by the end of the decade, primarily for international markets. While Ford has incorporated hybrids into its strategy, BMW is demonstrating its dedication to electrifying its offerings.
As Ford, General Motors, and Stellantis grapple with an unprecedented strike, Tesla and BMW are confidently heading towards an all-electric future.
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