Dunne said Chinese consumers are “impressed and worried about the future.” “It’s a double whammy that Tesla is facing in China.”
Tesla stock is responding in part to the same factors that are rocking stock markets around the world: the Ukraine war, interest rate hikes, recession threats, supply chain chaos and soaring inflation. But Tesla stock has fallen far more than other Silicon Valley giants like Apple or Alphabet, which owns Google.
Tesla accounted for three-quarters of electric vehicles sold in the U.S. last year. The company is years ahead of its competitors in battery technology and software. However, two models – the Model 3 sedan and the Model Y sport utility vehicle – accounted for 95% of Tesla’s sales. The next consumer vehicle, the pickup truck, has been delayed several times and is not expected to be as early as next year.
It’s an axiom in the automotive industry that new models drive sales. And intensifying competition from competitors like Hyundai, Ford and Volkswagen gives drivers more choice.
Automotive industry veteran Jesse Toprak, chief analyst at Autonomy, a company that offers electric vehicles as a subscription, says Tesla’s market share will drop below 40% by the end of 2023. expand.
“They will take a smaller stake in the bigger pot,” Toprak said. “However, the near monopoly on electric vehicle sales in the United States will gradually diminish.”
Tesla is already facing fierce competition in Europe, where electric vehicles account for 13% of new car sales. This heralds what could happen in the United States, where battery-powered car sales are just starting to kick in. Volkswagen, which invests heavily in electric vehicles, sold 56,000 battery-powered cars in Western Europe in the first three months of this year, with Tesla selling 58,000, according to figures compiled by Schmidt Automotive Research in Berlin.