- BMW will be going after Tesla’s bread and butter in a big way.
- The German giant will launch an army of electric vehicles (EVs) in the coming years.
- BMW’s brand value and global sales presence give it an edge over Tesla.
Elon Musk and Tesla (NASDAQ:TSLA) have grabbed the headlines thanks to their bizarre pick-up truck that looks like a hurried concoction of popular geometrical shapes, but that isn’t helping the stock go anywhere. TSLA is down more than 3% in pre-market trading Friday, and it is not difficult to see why.
Tesla pickup truck #RevealFail
Looks like a 5 year old tried to draw a DeLorean
Elon Musk claimed “armored glass” windows “bulletproof from 9mm handgun”
Then this happened:
— Gabe Hoffman (@GabeHoff) November 22, 2019
Tesla stockholders might not be happy with the obnoxious design of the pick-up truck and a long waiting period before it hits the market. But the more pertinent reason why Tesla investors are panicking right now could be because of BMW. The German luxury carmaker has just revealed that it plans to enter into the electric vehicle market in a big way.
If I had a long-term Tesla investment Jim I’d be dumping it!https://t.co/qxdK688NWY
— Nick G (@thegnick) November 22, 2019
BMW’s grand EV plans revealed
TechCrunch reports that BMW is going to spend €10 billion ($11.07 billion) to buy battery cells in the coming years from Contemporary Amperex Technology Co. (CATL) and Samsung SDI. This new deal with CATL is much bigger than the earlier one – worth €4 billion – that was announced last year.
According to BMW, the new battery deal will run from next year through 2031. The German company has also signed up Samsung SDI on a €2.9 billion deal to procure electric drivetrains. This is another long-term contract that will run from 2021 through 2031.
These multi-billion dollar investments from BMW don’t come across as a surprise. The German giant is in the cross-hair of the Tesla Model 3, according to…