Audi AG recently unveiled its Tesla challenger, the E-tron, teaming up with Amazon.com Inc. to install home chargers for E-tron buyers. While Amazon helping to get new plugs put into garages may not scream revolution, it should still worry the likes of Exxon Mobil Corp. according to a renewable energy expert.
The hassle of charging has long been one of the things holding back the electrical vehicle market. Amazon’s entry will make that a whole lot easier, potentially representing a major threat in oil’s biggest market. The fossil fuel industry should be worried about a company such as Amazon encroaching on its territory.
Amazon rarely opens anything to the public unless it knows it has a home run and is generally seen as a major disruptor to many markets it has entered. Based on one of its core strategies, Amazon also has the luxury of taking a profit loss in order to get its concepts off the ground.
The fact that the retail behemoth has taken a toehold in yet two more businesses: energy and transportation should make Big Oil wary. Back in the summer of 2008, three of the world’s five most valuable companies produced oil and gas. Exxon was No. 1. Today, Big Tech dominates and Exxon struggles to stay in the top 10.