However, the competition has been catching up, and the likes of Ford and Volkswagen have decided to invest billions in the development of their own Electric lineup. In this article, we analyze the RD strategies of Tesla and its rivals.

Understanding RD Strategies in the Automotive Industry

Research and Development (RD) is critical to the success of any company, but it's even more important in the automotive industry. In this rapidly-evolving space, companies that fail to innovate quickly falter and fall prey to their competitors. R&D in the automotive industry is highly complex, and typically involves teams from various departments working together to develop new technologies, improve existing models, and create new ones from scratch.

The RD Strategy of Tesla Motors

Tesla has been the paradigm shift in the Electric Vehicle industry, and its RD strategy is unique in multiple ways.

• Investment in Battery Technology: Tesla spends a considerable amount of resources in improving its battery technology. Its team of engineers is constantly working on making the battery more efficient, less expensive to manufacture and with a longer lifespan.
• Vertical Integration: Tesla has created a highly integrated manufacturing process. By producing their own electric engines, battery cells, and charging infrastructure, they have full control over the production process and can quickly adapt to new market trends.
• Simulation and Modeling: Tesla uses advanced computer simulations to test and optimize various aspects of its cars, including performance, safety, and durability, without the need for physical prototypes, allowing them to iterate faster and more efficiently than their competitors.

These efforts have paid off, and Tesla currently leads the electric Vehicle market with incredibly high customer satisfaction ratings and strong brand loyalty.

The RD Strategies of Tesla's Competitors

Tesla's success in the electric vehicle industry has not gone unnoticed, and many traditional automotive manufacturers have decided to invest heavily in their own electric vehicle lineups. Let's take a look at the RD strategies employed by some of Tesla's key competitors.

Volkswagen

Volkswagen is one of the world's most prominent automotive manufacturers, and it has invested over $90 billion in its electric vehicle strategy. The company is focusing on several key areas to ensure their success.

• Modular Platform: The Modular Electric Drive Matrix (MEB) platform is being designed to work for a wide range of vehicles, from city cars to SUVs. This strategy allows VW to produce multiple models on the same platform reducing production costs and streamlining manufacturing efficiency.
• Large Scale Production: By 2025, Volkswagen aims to produce around 1.5 million electric cars per year, making them one of the largest manufacturers of electric vehicles in the world.
• Investment in Charging Infrastructure: Volkswagen is investing heavily in building a robust charging infrastructure across Europe, including high-speed charging stations which will provide 80% charge in just 30 minutes.

Ford

Ford, one of the largest automobile names globally, has pledged to invest over $11 billion into its electric vehicle plans through 2022 with the following strategies:

• Investment in Autonomy: Ford is investing in autonomous technology and has partnered up with leading Silicon Valley start-ups to develop self-driving technology to integrate into its electric vehicle lineup.
• Collaboration: To accelerate its electric vehicle RD efforts, Ford has partnered with Rivian, another electric vehicle start-up, to develop Ford's first long-range electric vehicle.
• Production of Battery Cells: For better control over the production process, Ford has decided to mirror Tesla's approach and plans to produce its battery cells through a new subsidiary launched in partnership with SK Innovation.

Key Takeaways

In conclusion, Tesla's RD strategies have been the driving force behind their success in the electric vehicle market. Their integration of battery technology, vertical integration, and simulation modeling have allowed them to innovate much faster and more efficiently than their competitors. On the other hand, Volkswagen and Ford have relied on their traditional supply chains to make large-scale investments into modular platforms, charging infrastructure, and battery technologies to step into the EV market. There is no single plan that guarantees success in the EV market, the industry's complexity favors those with the fastest and most efficient means of bringing ideas to fruition.

Investing in RD is a crucial aspect of any automobile manufacturer's ability to stay ahead of its competitors, as the industry is changing rapidly. RD's pursuance is being taken further seriously every day in the industry through collaborations, partnerships, and even subsidiary launches.