Tesla vs. BMW: Battling for Electric Car Supremacy

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Nov. 5 (Bloomberg) –- Bloomberg’s Jason Harper and Cory Johnson discuss the high-end electric car market. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Tesla.

Does anyone think these guys are seriously considering -- competing gecko aren't people who buy these guys only going to -- competing?

Aren't people who buy these guys going to buy both of them?

But i think people will -- i think people will buy one or the other.

And by the time the i-8 hits, people will be done with the tesla already.

It is finally prime time and we will see it next year.

Is this glamour, or is it really transportation?

What is funny is tesla is not bad with transportation.

I think the i-8 will be more of a glamour mobile.

It looks cool, but it is a little more sporty where the tesla is more practical.

Cory johnson, is this a glamour stock or a real investment when it comes to tesla?

I would think if you and i were in the car, it would be transportation.

If carol massar were in the car, it would be glamour.

Yes, it would.

You can see the stock giving up a little bit.

And indeed, there is a corollary value when you look at how much the stock has risen like crazy.

Even elon musk said that they have not earned the valuation of market has given them.

I'm paraphrasing a little bit.

If you go through some of the numbers in the tesla conference call, one of the interesting numbers that i saw was that while yes, they sold a lot of cars for the quarter mama but a lot of them were european -- for the quarter, a lot of them were european deliveries.

The s-1 went from 5150 last quarter to 4500 this quarter.

You have seen a decline in u.s. sales already for a car that is just getting out of the gate.

Jason harper?

That is the thing with the cars.

Cool cars only have a certain shelf life.

And then you get another cool car.

If you are spending over $85,000 for a car, it is a want and not a need.

The tesla is a really good car.

But they will need a good -- a new product soon.

People will be looking forward to the next cool thing and they need to entice those guys to line up their wallets now to buy something new in three to five years.

And it takes a while to line up a new model.

They've got to come up with the next thing.

You spend a lot of time behind the wheel testing new cars.

Isn't this just about the cafe standards that to the government puts out for automakers?

If you have an electrical car in the fleet, it drives the standards down to that you have the mpg.

I look at companies like bentley or rolls-royce, and they are in trouble.

They've got to do some interesting things.

Bmw, i've driven a bunch of their cars in the last four years.

They are really serious.

They are actually into as a company being both efficient and sporty.

There are a kind of models, especially in europe.

They have basically a 328, a diesel here they have just released.

But in this new car, they are doing -- it is a hybrid, both gas and electric.

And it is a three cylinder engine.

Instead of a v-6 or v-8. which they are also doing with their eyes three electric vehicle.

They are taking it seriously.

Efficient can be sexy, which is an interesting take.

Cory johnson, is this also a company that while benefiting from low-cost loans for alternative energy, is this a company that is leading the technology way when it comes to electric vehicles?

You could say, all right, they are doing the research and development.

That is why the stock is so high, but all of these advances will filter their way into the mainstream soon.

Yes, to whom will the advances accrue?

They were not necessarily given rants to sell cars to millionaires, but that is exactly what they have done.

The grants from the city, for you were way off this quarter because they were selling more cars elsewhere.

There was a hearing from the california emissions board where they were paying tesla about $13,000 for every car.

And it looks like they are considering cutting that back significantly by about 40%. that could have a serious impact on tesla as well.

To whom does the benefit of tesla's innovations accrue?

We can only hope there are more in this world.

It is a difficult road to get to, not least of which the 100 plus year industry in america.

It takes a while to charge these cars.

It is not as simple, and you have to plan your trips very carefully.

Because the chargers are not everyone -- everywhere you want to go.

We have about 10 seconds.

You have an electric car and you get 100% torque on demand, which means lots of fun right away.

People always talk about efficiency.

But they are a blast to drive.

This text has been automatically generated. It may not be 100% accurate.

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