For a few years, legacy automakers like Ford and General Motors dismissed Tesla as little more than another start-up with grand EV plans. The situation is very different today. Tesla is now valued at over $1 trillion, placing it in an ultra-exclusive club with tech giants such as Apple and Facebook. Ford, for example, currently has a market cap of around $34 billion. The Blue Oval's CEO, Jim Farley, doesn't have anything against Tesla. In fact, it's quite the opposite.

In a Twitter post a few days ago, Musk replied to another user, stating "The cemetery of automotive startups over the past century is very large & will get larger. Tesla & Ford are the only American car companies that haven't gone bankrupt."

Farley then commented: "Thanks for leading the way…." Clearly, there's mutual respect between the two American car companies and this isn't the first time it's been publicly expressed. Several months ago, Musk congratulated Ford when it revealed the all-electric F-150 Lightning, a direct rival to the upcoming Tesla Cybertruck.

Musk has stated time and again that competition is not only the right thing but something he expects and wants. One of the main reasons why Farley was chosen to be CEO was because he clearly understands how the auto industry is changing rapidly. It's not only about transitioning to pure battery electrics, but also mobility in general.

Subscription services, electric scooters, and connected tech are all vital areas. Musk understands this, as does VW Group CEO Herbert Diess, who recently shocked an audience of VW managers by inviting Musk to speak virtually during a conference. Cooperation and mutual respect while still being rivals can be accomplished.

Ironically, former Ford CEO Mark Fields, who now holds the same position at Hertz rental car company, just signed a major deal with Tesla for the purchase of 200,000 Model 3 vehicles. This is certainly good for Tesla and even competitors. Other rental car companies will now want to join the EV bandwagon and they may shop around. Tesla is no longer the only game in town.