Tesla’s dominance in key markets, business newspaper The Wall Street Journal noted, is showing the first signs of weakening as well-known automakers began offering models that could compete with the company’s electric vehicles.
In the US, Ford Motor’s all-electric Mustang Mach-E crossover has begun to take over Tesla’s market share, and in Europe, the world’s largest electric vehicle market, Volkswagen AG surpassed Tesla last year to become the world’s best-selling electric vehicle maker, according to new WSJ data. In fairness, it should be noted that in other markets such as Asia, Tesla’s share has remained and even increased.
According to research firm Motor Intelligence, the Mustang Mach-E accounted for 12% of total U.S. electric vehicle shipments last month. Tesla’s market share fell to about 69% in February from 79% last year.
According to data from Schmidt Automotive Research, approximately 98,000 Tesla vehicles were registered in Western Europe in 2020, down about 11% from 2019, while the total number of all-electric vehicle registrations more than doubled. Tesla’s market share in 2020 fell to about 13% from 31% a year earlier.
However, Tesla still retains some strategic advantage over its competitors, including through a network of dedicated car charging stations.
Despite expanding offerings from competitors, Tesla continues to ramp up production. The company shipped nearly half a million vehicles worldwide last year, exceeding 2019 shipments, and intends to grow at a faster pace in 2021.
Tesla’s long-term growth will be driven in part by two new car factories it plans to open this year: one near Austin, Texas, and another near Berlin, Germany, the first in Europe. The company has also expanded its manufacturing facilities in Fremont and its new plant in Shanghai, China.
Local production will allow Tesla to cut Model 3 prices in Europe by 20%, thanks in large part to cuts in shipping, insurance and tariffs, analysts at New Street Research said in a note to investors this week.
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