There’s been tons of talk about Tesla’s partnership with Volvo, and the fact that it was only last year that these two car companies were rivals makes it even more interesting to see them team up now. So what does this partnership really mean?
What has Tesla promised Volvo? And how does this partnership affect the other major automotive companies? In this article, we’ll explore these questions and learn what the future holds for Tesla and its competitors.
What it means for TESLA
In exchange for a 5-year agreement, Tesla will give $1.8 billion to Volvo as part of a so-called supply chain deal that could eventually have Tesla producing autonomous driving and electric car technology in collaboration with its former rival. Both companies have identified areas where they can optimize and streamline their operations, potentially saving both companies time and money while improving performance. This is exactly what Elon Musk had predicted when he said earlier today that his long term goal was to achieve synergies between Tesla and other parts of his ecosystem (henceforth Tesla Ecosystem). My bet is that by working closely together for 5 years these two EV manufacturers will be able to realize massive cost savings on shared parts, production processes and product lines.
Although right now, there is no guarantee that any of these predictions will be true. We have to wait and see how things unfold. What I am sure about is that if it works, we will see a lot more cooperation between Tesla and other EV manufacturers in upcoming years as they try to keep up with Tesla on their way to fully autonomous driving. As for today, one of my favourite investors David Einhorn said it best: when you’re considering an investment you’re buying into a story. And in Tesla’s case, we have yet another story to look forward to and it involves synergy between EV manufacturers around the world! Stay tuned… 🙂
And it’s already on its way! 😀 I have included a link to Volvo’s Press Release here so you can read about their perspective. Also if you want to know more about Tesla’s Ecosystem, then go to Elon Musk’s Master Plan Part Deux from July of last year in which he outlined Tesla’s future and why they are doing everything they are doing in creating an Ecosystem. 🙂 *Sorry if you get bored reading through that epic post!
This year it seems Tesla has made good on that promise by making an agreement with Toyota. Furthermore, many of Tesla’s competitors have already started investing heavily in their electric vehicle programs so they can be ready to enter mass production sooner than later. 😀 Stay tuned folks! It is going to be fun to watch other EV manufacturers trying to keep up with Tesla! 🙂 As always thanks for reading! Until next time! 😉
What it means for VOLVO
For a long time, companies were hesitant to partner up with Tesla. Now they’re seeing that Tesla is an ecosystem that brings value to their businesses as well. Even major players like Ford and Mercedes have partnered up already. The wave of change is coming and it won’t be halted any time soon!
This partnership means that eventually, every new vehicle that is produced by VOLVO will have self-driving capabilities. Instead of having to wait years and years for every car on their line to get a driverless update, VOLVO can build all of their cars with a compatible platform, meaning they’ll be able to roll out new software updates faster than before. Plus, all those sensors they’re using are built into Tesla’s vehicles – so they don’t need to go through expensive rework or redesigning when designing new models. Not only does it make building these vehicles easier and more cost-effective for VOLVO – but it also gives them a ton of extra info about how these vehicles are performing in real-world conditions!
With Tesla having so much experience in driverless tech, VOLVO is going to get a massive leg up when they start integrating it into their own designs. Plus, because they’re using sensors and cameras from Tesla, they’ll be able to easily switch over to their own devices if needed. This means that even though these first models will come out soon – VOLVO can swap in new tech as time goes on without wasting any time or money! Plus, by adding more advanced systems like these sooner rather than later, VOLVO is setting itself up for a huge competitive advantage over other automakers that aren’t going to be able to compete for years.
Tesla and VOLVO already share a similar ideology when it comes to their approach to developing new vehicles. Each company has sought to build eco-friendly vehicles, so partnering up makes sense – but that’s not all there is to it. Tesla has now established itself as an ecosystem for developing self-driving cars and other features that could have wide applications in multiple industries. They’re also one of the very few automakers that are owned by someone who doesn’t have a stake in another major automaker, meaning they can truly do what they want without worrying about upsetting any of their competition. This means that VOLVO should be able to leverage Tesla in many ways going forward as well!
What it means for the Environment
It has been a long time coming, but carmakers are finally waking up to their responsibilities when it comes to dealing with carbon emissions. A new announcement from Tesla and Volvo marks a significant moment in automotive history as they begin to move towards electrifying their vehicle fleets. Not only will hybrid and fully electric cars begin hitting our roads, but they’ll also be manufactured by automakers themselves—in some cases, right inside of their assembly plants. This means we’re approaching an electric-vehicle future sooner than we thought! By putting EV vehicles on mainstream display in dealerships across Canada, these two companies are sure to propel electric vehicles into the public consciousness like never before.
It’s clear that public consciousness is already changing, especially when it comes to electric vehicles. Today, EV vehicles make up a tiny sliver of total vehicle sales—around 1% globally—but they’re growing in popularity quickly. In fact, sales jumped 50% in 2017 compared to 2016. This growth is being driven by high-end luxury brands like Tesla and Porsche as well as newcomers like NIO, a Chinese automaker that plans to launch an EV on Canadian roads next year. Nissan has also said it will no longer manufacture gas-powered cars for sale in Canada by 2040, underscoring how major carmakers are slowly gravitating towards electrification. The reasons for automakers pivoting away from gas are twofold: environmental and economic.
The biggest problem facing our planet today is climate change. The leading cause of climate change is greenhouse gas emissions from fossil fuels—gas, oil and coal—and it’s a problem that is only getting worse. We need to take action now, or we could face catastrophic consequences in just a few short decades, including rising sea levels and widespread drought. By transitioning away from conventional internal combustion engines toward electric ones, automakers are making a massive contribution to curbing carbon emissions. They are also showing their customers that they care about their futures too. What it means for consumers: Consumers will benefit tremendously from more access to electrified vehicles across Canada in the coming years.
What it means for consumers – Second Paragraph: According to research conducted by Natural Resources Canada, EVs use only one-fifth of the energy that gas-powered cars do—meaning they are much cheaper to operate. What’s more, it takes 1.5-kilowatt hours of electricity to produce a one-kilowatt hour of gasoline; in other words, you have more than double your output for less than half your input when using electric vehicles versus gas-powered ones. This is great news for anyone with an eye on their monthly finances—EVs may cost a little bit more upfront but they’re paying themselves back every time you hit Refuel at a gas station!
Conclusion
As a green car company, Tesla has always marketed its vehicles as zero-emission electric cars that are cleaner than gasoline. However, their newly announced partnership with Swedish automaker Volvo changes everything. It’s not just about Tesla—it’s about the entire industry moving towards electrification. Now that car buyers have even more options to choose from, those who might have been unsure of buying an electric vehicle now have much less to worry about. If you want to be on board for what is likely going to be a fundamental shift in how we think about and buy cars, don’t wait for them all to become fully autonomous; it won’t happen for at least another decade.
The partnership between Tesla and Volvo is a massive game-changer in more ways than one. Not only are they working on a joint venture to combine their electric vehicle tech, but they’re also working on a range of EV and battery storage solutions that will make EVs more accessible for everyone. Think about it: right now, if you want to buy an electric car, your options are limited; there aren’t many mainstream automakers out there who are offering up fully electric vehicles as part of their core lineup. There’s Tesla, Hyundai (with its new Kona EV), and that’s about it. Most other brands have at least one or two EVs sitting alongside their gasoline-powered vehicles in showrooms around the world.
As a result, you’re limited in your purchasing options. Even if you can afford a fully electric vehicle, it may not have all of the features you want or need. If you live in an urban area and don’t have any children or other large family members, for example, EVs with five-seater capacities might be too much car for your needs. What about autonomous technology? You can always upgrade your Tesla Model S or X later down the line by adding Enhanced Autopilot to it, but why should you have to pay extra for that when all-electric vehicles without autonomous tech are often much cheaper?
As a result, Tesla’s partnership with Volvo opens up a whole world of possibilities for those looking to buy an electric vehicle. Instead of being limited to just one or two options, you now have multiple choices for your next car purchase. You can get one from Tesla—the brand that paved the way for all other automakers to take it seriously—or you can wait a little longer and see what else rolls out from Volvo. Whatever your preferences are when it comes to green cars, you’ll be able to find something that matches them. Best of all, they won’t cost you more than regular internal combustion engine (ICE) vehicles and some of them will even cost less!
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