The internal combustion engine is on its way out for luxury car brands, and it’s a big opportunity for investors in chip stocks like Monolithic Power Systems.
Listen closely. It’s the sounds you don’t hear that count. The electric car revolution is happening.
Balding and mustachioed, Dieter Zetsche does not look the part of a futurist. Still, the Mercedes-Benz chief is pushing the 92-year old automaker headlong into the future. It’s electric.
The internal combustion engine is on its way out, and it’s a big opportunity for investors.
Electric propulsion has been softly creeping up on us for years. Prior to the new millennia, Toyota’s (TM) Prius was a hit with the Sierra Club set. Tesla (TSLA) pushed the market beyond green patrons with a fleet of no compromise electric vehicles. A Tesla SUV recently crushed a $530,000 gas swilling Lamborghini. I commute on an electric performance motorcycle made in Santa Cruz, Calif., called the Zero S. Electric has also piqued the interest of luxury car markers
In addition to the 2019 Mercedes EQC, all electric SUV, Porsche is bringing Taycan to market. The head turning, swooped, stretched Targa sports car looks more concept than reality. And the Audi e-tron and the Jaguar I-Pace are muscular EV crossovers that look fast even when they are parked.
These vehicles are not supposed to be for soccer moms. They are designed for eye-stabbing flashes of neon light. They beg for drivers with a heavy foot.
They are being called Tesla killers, but this characterization misses the point.
The Silicon Valley carmaker is an easy target. It has been plagued with production woes since inception. It can’t keep top brass, and Elon Musk, its brilliant chief executive, is an emotional mess eager to please. Too often, the result is over-promise.
The Germans are promise keepers. They know how to make cars. But they are not going to kill Tesla, at least not intentionally. In a way, they are surrendering to Musk’s vision of the future of cars. They are migrating production to electric propulsion.