Electric cars are in their early days, and there’s a good chance they won’t be here much longer. But the future looks bright for electric cars, with carmakers investing heavily in this segment. So what happens to all the electric cars that are manufactured now?
Not everyone is optimistic about the future of electric cars. Many people think that the technology isn’t advanced enough to support growth in this segment. For example, some believe that battery technology cannot keep up with demand.
As a result, several carmakers have already ended the production of their electric cars. In this article, we look at the implications of an electric car manufacturer disappearing and how it might affect the auto industry as a whole.
What If Tesla Disappeared?
If Tesla were to disappear, it would be a big deal for the auto industry. However, carmakers are already seeing the effects of this in the form of lower production.
The fact that there are now more electric cars on the road than there were a year ago is a result of Tesla’s success. The savings Tesla generated for its owners through its reduced price offerings will help compensate for any lost production that Tesla’s absence would cause.
What Would Happen to Electric Cars Now That Tesla Has Left the Market?
If Tesla were to stop making electric cars, it would affect the auto and battery industries. Most carmakers source some or all of their battery cells and pack materials from suppliers worldwide. Tesla’s dominance in the American car market would help maintain the industry’s momentum.
But the effects in the broader market would be significant. Without Tesla to drive demand for electric cars, the market would significantly contract.
What Would Happen to Electric Cars After Tesla?
Beyond the impact of Tesla’s absence on the auto industry, the implications for the individual car manufacturer would be significant. If a major carmaker were to stop producing electric cars, it would significantly affect the entire industry.
For example, if BMW had to give up making electric cars, it would significantly affect the market for these types of vehicles. On the other hand, Tesla is essentially a part of the auto industry.
A World Without Elon Musk
The disruption caused by Tesla’s death would be so significant that it would cause a recession or depression. The entire world would lose access to Tesla’s technology. We’d have no reason to have power, no way to run our transportation systems, and very little to cope with the effects of extreme weather.
The entire global energy industry, which is still being built around his work, would grind to a halt. Businesses and people would be without power for extended periods, reducing transportation to slow and expensive modes of transport.
Individuals living in regions without power would find it very difficult to survive. Food and other essential supplies would become more expensive, and people would face hardship.
The Economy Would Crash
Businesses would go out of business, and there would be drastic consequences for the entire global economy. We’re already seeing signs of this. The entire financial system would be in shambles, and there would be massive job losses in the energy industry.
The entire value of the stock market would fall, and many financial institutions would fail. As the system missed out on the benefits of Tesla’s technology, it would have very little to show for itself. Without the constant flow of new technology, there would be a carbonic black swan event.
The whole world would be affected, and the world would look very different.
The World Would Be in Trouble
As I mentioned above, the disruption caused by Tesla’s death would be so significant that it would cause a new world order. It includes political terms, foreign policy, and the economy.
The entire system of government, social organization, and international trade would have to be rethought. The implications of this are staggering: the mores of human nature would be altered, and there would be a long-term effect on religion, science, and the arts.
Tesla Would Have No Employees
One of the first things to go would be Tesla’s workforce. With no business to run and no customers to serve, the doors would close, and Tesla would go quietly into the night.
There would be no need for the thousands of contractors, employees, and vendors that make up Tesla’s culture. With no one to run the show, the board of directors would have no one to answer to, and a sea of red ink would fill their offices.
The Tesla board of directors consists of the CEO, the largest individual shareholder, six independent directors, and a small group of Venture capitalists. It’s a very active board with a lot of power behind it. With no one to run the show, the company would likely go dark very quickly.
There Would Be No New Tesla Products
New products are essential to a business’s success. Tesla is no exception to this rule. Without new products, the company would effectively die. The board of directors would be left with nothing to run the business, and there would be no one to take orders from, no fuel for the engine, and no way to get to work.
Tesla has several new products in development, including a solar roof tile, a new roadster, and an electric pickup truck. It would be challenging for the company to survive without these products.
Without Tesla, the Renewable Energy Industry Would Die Out
As mentioned above, the entire global energy industry is built around Tesla’s work. Without Tesla, the entire industry would grind to a halt. The impact on the environment of a world without fossil fuels would be significant. The earth would be very different with no electricity, transportation, industrial processes, food production, water sanitation, and power plants.
Desertification and pollution would be catastrophic. The entire industry would die out, along with much of the agriculture and livestock sectors. Food production would be reduced by at least 50% and perhaps as much as 90%. Vegetation would die, and freshwater flow would become essential to survival.
What Happens to The Gigafactory?
Beyond all, the survival of Tesla’s business is nothing more than an afterthought. There is no way for Tesla to survive without the Model 3, and the Model 3 is not expected to be available for at least six months. With no customers to service and no product to sell, there would be no reason for Tesla to exist.
The entire factory would go dark, and the workers in the nearby communities would be left with no jobs.
What Happens to Solar City?
Like Tesla, Solar City would be unable to survive without the Gigafactory. The factory is the source of nearly all of the company’s panels, and with no electricity, there would be no need for solar panels. Solar City’s operations would shut down entirely, and thousands of people would lose their jobs.
What Happens to Nevada?
Nevada has been a big winner from Tesla’s presence in the state, but that could change if Tesla goes bankrupt. The state has already lost a lot of money from previous gambling losses and is not in a position to take on another loss.
Thousands of people have made Nevada their home thanks to Tesla’s presence, but they would also lose their jobs if the company went under. The domino effect could be catastrophic for Nevada.
Is this Scenario Likely?
Of course not! It is doubtful that any company will cease operations like this without first trying to restructure its debt or sell itself off to another buyer. But even if it doesn’t happen, it is essential to recognize that Tesla Motors is more than just an automaker — it is also an energy company.
And just like other energy companies, it relies on the sale of fossil fuels to remain profitable and competitive in today’s market. If fossil fuels continue to fall out of favour, Tesla may be in trouble.
The Company Would Fold
If Tesla were to go public, it would fold. It doesn’t make sense for Tesla to have so much power and influence in the auto industry — it would be like having Google run insurance or Facebook as a car dealer. With that kind of power comes tremendous responsibility and a lot of risks.
If Tesla were to go public, it would need to raise a ton of money. It would need to raise equity and debt, and it would need to do so quickly. There’s no telling how the stock market would respond if Tesla were to go public.
The Auto Industry Would Be Left Without a Leader
The auto industry is changing — and not for the better. Cars are getting more and more sophisticated, with more and more features and capabilities. Stellar engineering and incredible innovation are now things of the past, as car companies look to move away from using exotic materials and towards cheaper and more accessible methods.
The auto industry is moving away from innovation and towards homogenization, and it’s getting close to being abandoned by a large portion of the population. Without Elon Musk leading the way, the auto industry is at risk of disappearing — and with it, the automobile itself.
What Happens Next for the Auto Industry?
The auto industry is in a state of limbo right now. On the one hand, it’s amidst a historic period of change. More people are getting their cars and trucks washed yearly, and this trend will likely continue. On the other hand, the automotive industry is deeply ingrained in traditional values. It’s in a transition phase, and the industry is still trying to find footing in the new world order.
If the auto industry were to go public, it would need a lot of capital. It would need to raise equity and debt, and it would need to do so quickly. There’s no telling how the stock market would respond if Tesla were folded.
Is There A Future For Automobiles After Elon Musk Leaves?
The future of automobiles is bright. In a world without Tesla, Big Oil, or Big Automobile, consumers will have more choices and be able to purchase a broader range of things. In a world without Elon Musk, Tesla, or others like them, no one person or company owns a large enough percentage of the country’s vehicles to have a meaningful impact.
In a world without Elon Musk, we will see more and more companies entering the market every year. Companies that will bring new technologies and make significant contributions to the industry. In a world without Elon Musk, the auto industry will continue to change and progress. It always does.
The Future of Tesla: Will it Continue to Exist?
If Elon Musk were to step away from his duties as CEO and hand the reins over to a professional manager, the value of Tesla would increase. And with the increase in value would come growth and new contributions to the broader industry.
If the company were to fold, the auto industry would be without a leader and a technology disruptor. If the company continued to exist, it would likely fold under its weight — or be acquired. With the amount of debt that the company has on its hands, it’s hard to see it surviving for very long.
It would also be without a vehicle. But the auto industry is at a crossroads. It has a choice: It can continue to follow the path that has defined it for generations, or it can chart a new path that will allow it to evolve with the times and remain relevant in a rapidly changing landscape.
The Bottom Line
The future of electric cars is bright. More electric cars on the road have a higher demand for charging stations. As more stations are built and operators learn to offer fast reliable charging, the number of electric cars on the road will drop precipitously. There’s no question about that.
It would affect both new and existing customers. Consumers must decide if they want to continue buying an electric car or switch to a different brand.
If you liked this article, check out: ‘What If 1 Dollar = Rs 1 Happened? The Real World Implications of This Economic Reality.’