Wave 1: "It's all about legacy and prestige, not speed/acceleration".
Wave 2: "The track handling isn't all that good, how can drivers take that corner at full power without losing traction".
Wave 3: "Alright, we will go electric too".
The best combination is ultimately both though, hybrid systems are already used quite frequently in everything from LMP1 WEC racers to modern hypercars.
Electrics will break that association. Or it will create a new expectation about what a fast car sounds like. Because from now on, they will always be faster than ICE vehicles.
I think there will be a niche of people buying ICE cars for their loud sound, just as there are people who buy the loudest possible motorcycles even though they're not very fast. But I think this will be a niche, and they will probably be considered obnoxious people.
I think we'll also see more sound engineering in EVs. They'll perhaps get a more satisfying sound, but will still be quiet.
Although I seem to recall that many cars bought for sound already play synthesized motor noise through the speakers, simply because if the shift to smaller, better performing engines means that they don't have the same sound anymore anyway.
Moreover, what does this mean to Tesla? Competitors with decades of manufacturing experience cranking out reliable, fast electric vehicles with likely better build quality might pose an interesting problem.
Regardless, very interesting to watch the competition heat up.
That might have been what you meant, but just pointing out that it's not necessarily "all electric".
But wave 3 is already here - a lot of smaller companies are talking about making their own electric vehicles. If batteries become commodities, it's going to reduce the R&D cost of making a road legal car by an order of magnitude. We're just waiting on the batteries.
I'm tangentially involved with hot rodders, and a lot of them have spent some time thinking about adding some amount of electrification to their vehicles. Hot rods usually have thermal management problems for their engines and they run the risk of overheating when they're crusing around car shows / parades. Some folks think a small electric motor and battery would be a good way for them to drive short distances slowly and save the engine for higher torque demands.
We'll probably get there at some point, once diminishing returns starts setting in. And lots of industries that aren't interested in developing battery packs (e.g. general aviation, construction, etc.), would have a sea change if high-performance battery packs were easily available. So I think the incentive to start a company in the space is good.
But for the next few years, I think battery pack design will still advance very rapidly and hence be left to the industries that are massively capital intensive and where the best battery packs are an obvious competitive advantage.
It's a super exciting development, and I can't wait to see what the future brings in this regard.