Luxury carmaker BMW Group (BAMXF) (DE:BMW) is stepping up its electric vehicle (EV) game with a new strategy built around “superbrain” technology. These software-driven EVs will be built on the company’s long-awaited Neue Klasse platform. With this approach, BMW aims to narrow the gap with American EV giant Tesla (TSLA) while also pushing back against fast-rising Chinese EV makers.
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For context, Neue Klasse is BMW’s next-generation vehicle platform for its upcoming EVs. The concept was unveiled in 2021, with over €10 billion invested in its development. Meanwhile, ‘superbrain’ represents a centralized, software-controlled computing system inside the car. All software-defined vehicles on the Neue Klasse platform will feature the Superbrain.
BMW’s EVs Are Here to Compete
Debuting this Friday, BMW’s iX3 SUV will be the first vehicle built on the long-awaited Neue Klasse platform. Over the next two years, BMW plans to release another 40 new models and updates, signaling a major shift in how the company designs and sells cars.
Earlier in July, BMW CEO Oliver Zipse stated that the company is advancing significantly across all key technologies with the Neue Klasse. He also praised iX3, calling it the “benchmark in the industry.”
BMW Aims to Outdrive Tesla and Chinese Rivals
BMW and other European automakers are currently lagging behind Elon Musk’s Tesla and Chinese manufacturers such as Xiaomi (XIACF) and XPeng (XPEV) in software development. Chinese manufacturers also benefit from the ability to produce EVs at significantly lower costs.
Nonetheless, BMW now claims its new technology will provide over 20 times the computing power of current vehicles while simplifying electronics. The Neue Klasse EVs will also have a longer range of up to 800 km, faster charging, and four “superbrains” to improve key vehicle functions.
Notably, Bernstein’s four-star-rated analyst Stephen Reitman called BMW’s Neue Klasse platform a “massive leap forward.” He noted that a successful rollout could reshape the auto industry and improve perceptions of Western carmakers’ software capabilities.
Which Is the Best EV Stock, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared the above-mentioned EV companies against each other to pick the best stock, according to Wall Street analysts.
Among these players, XIACF stock carries a Strong Buy rating from analysts with a Very Positive investor sentiment. Meanwhile, XPEV stock offers the highest upside potential of nearly 24% with an average price target of $25.75.
