Why do tech companies make cars?

Why do tech companies make cars?

Electric vehicles (EVs) are all around us and have become popular in recent years thanks to attractive government incentives and low maintenance requirements. But why are more and more tech giants entering the automotive industry?

It seems most of the existing tech giants want a slice of the EV market. Companies like Google, Sony, Apple, HUAWEI and even Xiaomi are investing a lot of money to compete with Tesla and other incumbents. Sina Tech (via ArenaEV) reported that Xiaomi will unveil an engineering prototype of its first EV in August. The company is working full steam ahead on testing and production of its first car and has reportedly already hired a PR director. The marketing campaign is expected to start after the presentation of the prototype. There are no renders or photos of the upcoming vehicle yet, but PocketNow knows that Xiaomi initially plans to produce 150,000 vehicles by 2024. The company is said to be planning to launch four different models in the A+ and B segments. The company already has more than 1,000 employees working in the R&D team. The A+ model is expected to cost between 150,000 and 200,000 yuan ($22,500 to $30,000) and will be equipped with Level 2 autonomous driving capabilities. AB segment vehicles will be priced between 200,000 and 300,000 yuan ($30-45,000) and will support Level 3 autonomous driving.

Why tech companies are getting into cars ? It is now clear that electric vehicles are the future, they are here and they will stay here. Most developed countries have agreed to ban the sale of new petrol and diesel cars from 2035, and the time for the next, greener generation is fast approaching. Although we are still more than a decade away from the ban, many worry that we are not yet ready for the transition, as the infrastructure, renewable energy sources and charging stations are not yet in place. However, this situation is likely to improve in the coming years as new projects focus on making electric vehicles more viable and consumer-friendly. Tech giants often have easier access to government subsidies and have the funding power to invest billions in technologies that can bring them high rates of return for years to come. This is why most companies are putting money into the development of autonomous driving, as they can license the hardware and software to other companies and generate huge profits in the coming decades. Electric vehicles are closer to technology than ever before, and thanks to continuous AI computing under the hood, they are very powerful. Many new modern EVs have countless cameras and sensors, all of which contribute to the massive network these companies are working to build. The more data they collect, the safer these vehicles will be in the near future. Technology companies have all the research and development capabilities in their hands to find better solutions than their competitors. This makes it easier to further develop the existing technology. Another reason tech companies join the automotive industry is that they don’t need funding. Most of these companies already have billions in their pockets, ready to make new investments in new ventures that will hopefully generate even more money in the long run. Startups often fail because they either run out of money, fail to close rounds of funding, or both. At the same time, tech companies also often invest in startups because it’s usually less risky for them than starting their own business. It’s easier to acquire a startup that’s already heavily invested in EVs than to create one from scratch. But the automotive and technology giants also work together. A good example of this is the cooperation between Sony and Honda in the joint production and development of cars. And they have already announced their joint Vision S-01 and Vision-S 02 vehicles.Hardware, software, tests, interesting and colorful news from the world of IT by clicking here!

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