Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA): The 1 Thing That Could Hurt It

But the idea behind the extensive use of carbon fiber in the car’s construction is to make it light in weight, to offset the weight of the batteries – and ensure that it drives like a BMW.

That’s Tesla-like thinking – a cool electric car that is fun to drive. And it’s just the beginning.

Still no direct Tesla competitors known to be coming, but a lot going on
BMW is known to be planning a whole range of cars under the BMW i sub-brand, including an expensive plug-in hybrid sports car called the i8.

It’s far from alone. Volkswagen has been playing with electric-car ideas for a few years now, and all-electric Audi A3s have been spotted testing. The company is thought to be planning plug-in vehicles ranging from small city cars to a plug-in hybrid diesel super-sports car for Audi.

Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) will up its electric-car game later this year with the Infiniti LE, a premium (there’s that word again) all-electric sedan – but has so far been coy about the car’s expected range. And the company is known to have its own plug-in hybrid sports car in the works.

General Motors Company (NYSE:GM) is launching its own electric city car, the Chevy Spark EV. But like Ford Motor Company (NYSE:F) and Toyota Motor Corporation (ADR) (NYSE:TM), GM seems to be putting most of its effort behind plug-in hybrids like the Chevy Volt and its upcoming Cadillac sibling, rather than premium EVs with Tesla-like range and performance.

The upshot: Tesla might have this market to itself for a while longer
Make no mistake, any of these major automakers could build and market a Tesla-like car. Ford Motor Company (NYSE:Falready follows Tesla’s example by using Panasonic Corporation (ADR) (OTCMKTS:PCRFY) lithium-ion battery packs in its plug-in hybrids. And Ford, like the others, is learning a lot as it goes.

Tesla Motors Inc (NASDAQ:TSLA)’s secret sauce is in its battery-management software (and its attention to detail), but I don’t think any of the big automakers would have much trouble getting close to Tesla’s neighborhood on either front.

So far, though, nobody has taken direct aim at the Model S. But if Tesla’s sales keep growing, they will.

The article When Will Tesla’s Competitors Show Up? originally appeared on and is written by John Rosevear.

Motley Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends BMW, Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.