It has become crystal clear in the recent democratic debates that combating climate change is a central focus of the Democratic Party, and governments around the world as a whole. The growing pressure of climate change can’t be ignored, and lawmakers are working toward solutions. These plans will be daunting for established auto manufacturers to adapt to, essentially having to reshape their entire business models to conform with new regulations. In stark contrast, Tesla is in the unique position that it has not only embraced changing times, but built its entire business around them.
The Green New Deal, introduced by Rep. Ocasio-Cortez and her progressive colleagues, which include supporters like Bernie Sanders, aims to transition the nation to emission-less vehicles by 2030. This staunch timeline only allots traditional car companies 10 years to flip their lineups to all-electric, a formidable and costly endeavor. China and Europe are so far even more aggressive in their anti-emission policies. From the conception of the company, Tesla has always had an all-electric lineup. During these 10 years, Tesla can use its head start to do any number of things, possibly positioning itself as the leading player in the industry.
In terms of battery production for Tesla vehicles, Ark Invest estimates that Tesla is already 3 years ahead of the competition. Although Tesla allows other companies to use its batteries, those competitors have been hesitant to accept this offer, likely due to the fact that they wouldn’t want to rely on Tesla for something so integral. It will take plenty of time and research to reach Tesla levels of battery efficiency, and unless traditional automakers focus adequate resources on battery tech, and in a smart way, this 3 year gap will only grow.
If Tesla continues to have the most compelling, most competitive electric cars for years to come, it will swallow more and more of the auto market, while other automakers shrink or even close down. By the middle of the coming decade, we should know whether Tesla’s lead and size will continually grow, but recent history and a glance at coming electric vehicles provide positive signs for Tesla.
Energy in the Home
Additionally, the Green New Deal plans to move 100% of the nation’s energy toward renewable sources. Tesla has invested heavily in the solar business, building an array of products related to energy production and storage. Tesla’s ambitious solar roof tiles and Powerwall are cutting-edge technologies in the industry, and will be hard to match. Tesla recently announced a rental program for its rooftop solar power systems, which will put them in the hands of even more consumers.
Tesla faces many challenges in the upcoming years, but it has placed itself in a good spot in terms of potential future legislation related to combating climate change. In many ways, Tesla is ahead of its conventional rivals, which is impressive for such a young company. Ultimately, the 2020s will be the decisive decade for Tesla’s success, a challenge which the company has made its own.