Amidst the constant Tesla hype, another Silicon Valley EV designer named SF Motors is shaping up to become Tesla's worst nightmare. They're working on a Model S/X competitor that will probably become a serious threat to Tesla's sales. And they're talking about producing hundreds of thousands of these cars in 2019. Not sure why more people aren't talking about them but it seems like this is a pretty big deal in the high-end EV space.
US-based SF Motors has some unique advantages over Tesla because of their China-based parent company, Chongqing Sokon. First off, SF Motors has tariff-free access to China's emerging EV market. Chinese Tesla customers are subject to a 25% tariff. SF Motors customers in both countries will be immune to tariffs because SF Motors plans to manufacture on Sokon's assembly lines in China AND in a recently acquired Hummer plant in Indiana.
And unlike Tesla, SF Motors has access to the deep pockets of cash from their profitable parent. They're hiring the best talent of Silicon Valley, including a former Tesla CEO. They're also acquiring key drivetrain technology.
They say their cars are going to be epic. 1000 horsepower. Beautiful. Probably self-driving shortly after they launch. But, there are still big questions like price point, quality, and manufacturing capacity.
What do you think? Is this really a threat to Tesla?