As of now, Tesla is the top U.S. electric vehicle maker. By 2025 Tesla’s market share may drop below 20%.
In a statement, S&P said, “Tesla’s position is changing as new, more affordable options arrive, offering equal or better technology and production build.”
“Given that consumer choice and consumer interest in EVs is growing,” the statement continued, “Tesla’s ability to retain a dominant market share will be challenged going forward.”
Don’t get me wrong, I love Tesla as much as the next guy or gal, but perhaps as more competition arises, a more capitalistic environment will be created. With an increase in competition, it’s only a matter of time before Tesla loses some market capitalization.
What Is Market Capitalization? According to Investopedia:
Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock. The investment community uses this figure to determine a company’s size instead of sales or total asset figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer.
Even as competitors like Ford and Chevrolet begin to rev up their EV factories, Tesla may find itself in competition with BMW and Mercedes-Benz. Perhaps even Lucid and Rivian, too. Yet, even though Tesla has a drop in market share, it remains the authority on EV manufacturing and sales.
Barron’s reports:
Tesla TSLA +7.67% has the lion’s share of the market for battery electric cars in the U.S. it is going to be the electric-vehicle leader through the end of the decade. Tesla has left itself vulnerable in one way though, and General Motors GM +2.04% plans to exploit that weakness.
We will see in due time if Tesla remains king, or if GM, or another competitor in the future takes the throne.
Patrick Bet-David on electric cars:
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