Elon Musk's Tesla Still 'One Generation Ahead' Of EV Competition: Ex-Ford CEO

Tesla faces increasing competition in the electric vehicle sector, with a growing number of Chinese makers as well as traditional auto firms such as General Motors and Volkswagen — AFP

KEY POINTS

Fields noted that Tesla competitors Ford and Hyundai are making progress in the EV industry
Fields predicted no one company will become the leader of the EV market
Tesla slides presented on Investor Day hint at a possible SUV model and a third-generation EV

Former Ford CEO Mark Fields on Thursday said Elon Musk's Tesla is still ahead of its competition despite a recent lackluster Investor Day event.

However, Fields also noted that other automakers manufacturing electric vehicles, such as Ford and Hyundai, are continuously making progress to dominate the EV industry.

"The key is gonna come down to who wins around this appealing product and around the software and user interface. It's around cost leadership and consistent execution. And Tesla right now is one generation ahead of the other automakers," Fields said in an interview with CNBC. "Tesla still has the leg-up on the competition, and I think they demonstrated that yesterday."

Fields predicted that no one company will emerge as the leader of the EV industry, adding that the market for electric vehicles continues to strengthen. "There's going to be a number of winners and there's going to be a number of losers because, when you look at the adoption of EVs over time, I mean, this is a huge addressable market," he added.

Fields' remarks come a day after Tesla held its Investor Day event where Musk announced his "Master Plan 3," which involves calls to switch to EVs and invest $10 trillion to create a sustainable future.

In addition, Musk's "master plan" includes Tesla's commitment to sell 20 million cars a year by 2030. It also includes plans on expanding production by opening a Gigafactory "near Monterrey" in Mexico, which could allow the company to manufacture vehicles for under $30,000, as per activist investor Ross Gerber.

"I really wanted today to be not just about Tesla investors who own stock, but really anyone who is an investor in Earth," Musk was quoted as saying by The Business Insider. "What we're trying to convey is a message of hope and optimism and optimism that is based on actual physics and real calculations, not wishful thinking."

Musk, however, failed to provide immediate details on new EV models during the Investor Day event, leading Tesla stocks to fall by 7%. The presentation slides shown at the event, however, hint at Tesla possibly manufacturing an SUV model and another third-generation EV, Yahoo Finance reported.