Entering text into the input field will update the search result below

Heads, Tesla Wins

Feb. 04, 2019 11:45 AM ETTesla, Inc. (TSLA)BMWYY282 Comments
Randy Carlson profile picture
Randy Carlson


  • German carmakers and the German government are concerned, as electric car battery production shifts to Asia and/or Asian suppliers.
  • Home-grown battery cell development is underway in Germany.
  • One prominent voice in the German auto industry is calling for companies to begin talks with Tesla about batteries.
  • It is at best a coin toss whether Mercedes and BMW will embrace a Tesla battery solution. Heads and Tesla might sell a Gigafactory or two.
  • And, if the coin comes up tails, Tesla's competitors might lose on batteries, again.

There is opportunity for Tesla (NASDAQ:TSLA) that has seemed remote, but that may be getting a bit more likely as German carmakers continue scrambling for electric car battery supplies.

German carmakers, and even the German government, are coming to realize that as the industry transitions to electric cars, a large part of the vehicle value-add, and lots of industry manufacturing jobs, will move from ICE drivetrain manufacturing to battery making. Germany can't seem to make its own battery cells, and even Chancellor Angela Merkel is urging Germany's carmakers to work on the battery problem.

If Germany outsources battery cell manufacturing to Asia, industry profits and many industry jobs will be lost. The alternative of course is for German carmakers either individually or through a consortium to begin making their own battery cells. One way to do this would be to develop cell manufacturing technology in-house, from scratch.

BMW (OTCPK:BMWYY) is working in this direction, and the company's battery development lab can be seen in the following video. It is worth watching to see how BMW engineers design and go about making a battery cell.

This BMW battery lab is clearly that - a lab project. It is a very long way from making battery cells at rates comparable to Tesla's Gigafactory. Even so, it is interesting to see what is going into BMW's prismatic battery cells. Cell technology and the processes and methods for cell making will underlie the success or failure of carmakers as they transition from ICE to electric vehicles. A German carmaker or the German car industry making their own cells in their own cell factories will only succeed if the cells they make are technically and economically competitive.

Round Pegs and Square Holes

Tesla is one carmaker that, with its partner Panasonic (OTCPK:PCRFF), makes its

This article was written by

Randy Carlson profile picture
I am an engineer and long time technical consultant specializing in control and instrumentation systems for medical, industrial, vehicle and aerospace companies. The technical, cultural, market, regulatory and other factors that separate successful products and companies from their peers has fascinated me for many years. My investment experience is limited to my own accounts.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.