Chinese consumers “are pissed off, they’re worried about the future,” Dunne said. “It’s a double whammy that Tesla faces in China.”
Tesla shares are reacting in part to the same forces rocking stock markets around the world: the war in Ukraine, rising interest rates, the threat of recession, supply chain chaos and soaring coronavirus. ‘inflation. But Tesla shares have fallen far more than other Silicon Valley giants like Apple or Alphabet, the company that owns Google.
Tesla accounted for three-quarters of electric cars sold in the United States last year. The company is several years ahead of its competitors in battery and software technology. But two models — the Model 3 sedan and the Model Y sport utility vehicle — accounted for 95% of Tesla’s sales. Its next consumer vehicle, a pickup truck, has been repeatedly delayed and isn’t expected until next year at the earliest.
It’s an axiom in the automotive industry that new models drive sales. And competition from Hyundai, Ford and Volkswagen is growing, giving drivers a lot more choice.
Jesse Toprak, an auto industry veteran who is a chief analyst at Autonomy, a company that offers electric cars by subscription, said Tesla’s market share will fall below 40% by the end of 2023. , although its sales will continue to grow as the overall market expands.
“They’ll have a smaller slice of a bigger pot,” Toprak said. “But their virtual monopoly on U.S. EV sales will slowly diminish.”
Tesla already faces stiff competition in Europe, where electric vehicles account for 13% of new car sales. This foreshadows what could happen in the United States, where battery car sales are just starting to take off. Volkswagen, which has invested heavily in electric vehicles, sold 56,000 battery cars in Western Europe in the first three months of the year, second only to Tesla, which sold 58,000, according to figures compiled by Schmidt Automotive Research in Berlin.