Tesla CEO Elon Musk's influence grows as automakers roll out electric-vehicle plans in Detroit
Volkswagen is investing $800 million and hiring about 1,000 workers for a new plant in Chattanooga, Tennessee for its electric car lineup.
Ford is actively developing its electric vehicle plans with 16 "electrified" models in the works and "a very big surprise" coming next year.
General Motors showed off its all-electric Cadillac for 2021.
Tesla may not be this year's North American international Auto Show, but it's easy to feel the influence of Elon Musk company on the automakers unveiling new vehicles in Detroit.
From announcing all-electric cars to adding assembly lines specifically for plug-in models, auto executives are ramping up their electric vehicle plans.
"There's no doubt, the auto industry is becoming much more serious about developing electric vehicles driven by the need for emissions compliance in He U.S., China and Europe." said Michael Robinet, analyst with IHS Markit. "Tesla has shown the industry that markets do exist for electric vehicles and the major players have taken notice."
Robinet says the early success of the Model 3 shows there is demand for all-electric vehicles. Until last year, U.S. sales of plug-in models were growing, but limited.
In 2017, the auto web site Inside EV's estimated the top selling electric model in the U.S. was Tesla's Model S, with sales of approximately 27,000 vehicles. In 2018, Inside EV's estimates Tesla sold just under 140,000 Model 3's in the U.S.. Tesla does not release sales by country.
The surge in sales for the Model 3 clearly demonstrates there's a larger market for an all-electric vehicle, even if it comes at a higher price. The average Model 3 sells for roughly $50,000.
Cadillac GM President Steve Carlisle admits he "obsessively" benchmarks and studies Tesla.
"They have done a lot to popularize electric vehicles and to get into the minds of consumers," Carlisle told CNBC after giving reporters an early glimpse of the all-electric Cadillac being developed.
Carlisle's public comments about Tesla are noteworthy. For years, auto executives have privately scoffed when asked about Musk and rarely did they publicly acknowledge the growing sales and success of Tesla. Not anymore.
While executives may be more willing to admit Tesla's success, many believe they can ramp up their EV sales to rival, if not exceed, Tesla.
Ford F CEO Hackett says the electric models it's developing are "going to appeal to car owners and car lovers".
Carlisle cautions that it's premature to say Tesla is the winner of the EV race. "I think we ought to wait a while to write the whole story because we don't know what happens when EV's really start to scale," he said.
Both executives have a point. Last year, consumers in the U.S. bought just over 360,000 EV's, just two percent of all vehicles bought in the country. In other words, it's early, but Tesla and Musk are clearly influencing the thoughts and actions of automakers looking to catch up in the world of EV's.
CNBC producer Meghan Reeder contributed to this report
Questions? Comments? BehindTheWheel@cnbc.com .
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