For the past 100 years, we have been developing better and better cars, with both breakthroughs and incremental improvements in the drivetrain, safety, comfort, reliability, etc.
Now though, cars are consolidating. Most car companies only have a handful of 'platforms' on which they build various models. For example: Volvo currently only produces 3 models of combustion engines. We have reached a point where numerous subsystems are just 'good enough' and require little more R&D.
During the past 20 years or so, the software had to keep up with all the new tech coming out in the automotive world. Now that development of automotive hardware is slowing down, it is time to focus on the software for the long run.
Tesla has been doing this for a while now. Their electric drivetrain is at point where there is more for them to gain in software than improvement of the hardware. For other car manufactures it is a bit harder to accept that, as they have been developing hardware technology for a long time.
Edit: fixed my wrong example about Volvo, thanks to C1sc0cat