BMW, Audi posed to Challenge Tesla?

Tesla Motors has been making prolific international headlines for the better part of 2014. From their legal battles in key states for the right to sell direct-to-consumer to the much anticipated decision to build their $5 billion dollar Gigafactory. The company also announced their intent to resell their own cars. One thing Tesla hasn’t seen much of in some time is competition. The Tesla Model S sedan sells for easily under $100,000 and can go (in 85 kWh trim) 265 miles on a single charge. No other electric vehicle can come close to that. However, BMW and Audi are looking to create vehicles to give the California-based electric car company more competition.

Several reports indicate that Audi is working on a crossover meant to rival the Tesla Model X. Ruper Stadler, the CEO of Audi confirmed those reports when he said referring to Audi’s latest project, “it’s probably going to be a crossover, but development work is still ongoing.” That ongoing development could mean the creation of a strong competitor to Tesla. The latest rumor indicates that the Audi crossover EV is expected to have a range of 280 miles. It won’t be available until 2017, however, that range is further than the best Tesla Model S.

Tesla’s Model X is a dual-motor all-wheel-drive vehicle with “Falcon Wing” side doors, which open vertically much like a Lamborghini or the Delorean made popular in 1985 in the movie “Back to the Future.” The Tesla Motors website claims that the Model X has a center of gravity lower than any SUV and can accelerate to 60 miles per hour in under five seconds. Tesla has also indicated it will be the first electric vehicle with towing capacity. That ability to tow will be essential considering the fact a roof rack isn’t possible with the “Falcon Wing” doors. The demand for the Model X looks substantial. The pre-order estimate now sits at around 20,000. In a letter to customers who put a deposit down to reserve their Model X, Tesla Motors told them it would be delayed. Part of that letter to customers reads, “While we’ll be working through all orders as fast as possible, anyone ordering the car today should not expect delivery until well into 2016.” Tesla has a history of making proclamations and then changing the date. For example, last June Elon Musk announced in a Bloomberg interview that Tesla wouldn’t pick a site for their much-anticipated Gigafactory until the end of the year. That date, of course ended up being September 3rd of this year. Production dates are certainly more likely to be scattered with Tesla, since they are, after all, a relatively new automaker.

In addition to Audi, BMW wants to take a swing at Tesla and into the EV/Hybrid performance market. They just introduced the i8 green supercar. With a price tag that begins at over $140,000, it’s more costly than the Model S, however, some experts think that it will take market share away from Tesla Motors. Karl Brauer of Kelly Blue Book told Yahoo the i8 would impact the Telsa fleet. “The i8 will absolutely pull buyers away from Tesla. It’s got a similar philosophy while being even more overt and distinctive in its exterior design.” Granted the i8 isn’t a true EV like Audi’s unknown crossover. It’s a three-cylinder, turbocharged engine coupled with an electric motor. The electric motor in the i8 only currently has a range of 20 miles. However, what’s important is that BMW is getting involved in the EV/Hybrid market. Tesla started with the Roadster and now has the Model S. It will be interesting to see what BMW decides to do after the i8. Could they produce an electric car that’s cheaper than the i8?

Tesla, a company that hasn’t known competition, appears poised to face true challenges during the next few years from more established automakers. Do you think that BMW or Audi will take buyers away from Tesla? Will anyone else be able to make a performance vehicle with a range of over 265 miles. Are electric vehicles going to eventually dominate the retail automotive landscape?