Peter Altmaier Urges German Automobile Giants to Compete with Tesla Motors

Peter Altmaier, the chief of staff in Angela Merkel government has urged German automobile majors to compete with Tesla Motors. Altmaier said that German automobile companies should invest money and time in development of electric vehicles. He added that German automobile companies must invest more money in order to compete with Elon Musk-led Tesla Motors. Tesla Motors is leading in the development of new technologies and improving per charge mileage for electric cars.

Following diesel emission scandal, many European governments are pushing forward the agenda for electric or alternative energy vehicles. During a public forum in Berlin, Altmaier said that he is waiting for German automakers to develop a car that can run 50 miles more than Tesla and would cost 10,000 euros less. Tesla has been very successful in improving miles per charge for its vehicles but the cars produced by Elon Musk-led automaker are expensive. Tesla has recently launched Model 3, the first mass market vehicle from the electric carmaker.

Tesla Motors enjoys higher valuation compared to some of the major U.S. automobile companies. Investors are confident that Tesla will bring in decent revenues and strong profit in near future. The company is still burning cash but Elon Musk has been successful in building investor confidence in Tesla products and technology.

Altmaier added, “If the automobile industry doesn’t grasp the fact that it has to invest more in electric vehicles, especially in cities, then it will be very hard to defend combustion engines, gasoline and diesel, over the long term,”

German companies are working on development of electric technology for their vehicles but they are still lagging behind. Additionally, the required investment in the segment hasn’t been committed by major automakers yet. Tesla enjoys market leadership as the company offers strong supercharging network in the United States and its cars have a long range compared to other electric vehicles.

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