Tesla is arguably the most well-known electric vehicle manufacturer and has become synonymous with electric vehicles and the electric vehicle market. Although Tesla holds a large chunk of the electric vehicle market, which is ever-growing despite many challenges and articles suggesting it would never become anything more than a niche – critics question whether people are actively making the switch to electric vehicles or are buying a Tesla vehicle purely because it’s a cult brand. Combine this with the antics of their infamous billionaire CEO Elon Musk – there is a lot of fame and talk around the brand, design, and manufacturing of the Tesla arsenal.
Tesla has enjoyed the top spot in terms of the electric vehicle market for many years, despite refusing to spend a dime on direct marketing, instead, they prefer to work on a customer referral program and the celebrity status of their CEO, which is a testament to their product and customer-focused approach. However, as we begin 2022 we ask if the tide is turning for Tesla and whether the traditional car manufacturers will start to catch up, as this once niche market becomes increasingly mainstream. There are now serious competitors in the Battery-Electric Vehicle space, with established companies in America and Europe dedicating billions of dollars to the manufacturing of BEVs, however, they won’t be the only companies vying for a piece of this lucrative global switch, as many start-up Chinese businesses, such as Nio and X Peng enter the market due to China’s and the world’s growing need for an electric car.
As this new “battery race” charges up, it will be interesting to see if Tesla will maintain their hold on the electric vehicle market or whether the new kids on the block begin to eat into their market share globally, or whether the traditional automakers can wrestle back their once-dominant position. This article takes a look at Tesla’s rise to power and looks into what the future of the electric vehicle market could look like over the next few years.
Tesla’s Rise in the Electric Vehicle Market
It’s hard to believe that Tesla was actually founded in 2003 and is now one of the leading independent car manufacturers in terms of profitability and other factors. Tesla is a hit with vehicle buyers and has continued to shape the electric vehicle market. At the start of electric vehicles – this market was thought to be a niche market – but now the market is booming. Sales increased by 76.3% in 2021 due to the Pandemic and other factors and this has massively changed the game in terms of the electric vehicle market.
By 2012, Tesla released the flagship Model S with Elon Musk and this increased the notoriety and popularity of the brand. The electric vehicle market is growing but there are growing thoughts and concerns that motorists want to own a Tesla and don’t necessarily want to own an electric vehicle because of the benefits to the environment. Could this be a symptom or is the electric vehicle market expanding due to environmental concerns and this is simply a coincidence? From Tesla’s point of view, whichever one it might be, they have achieved its mission statement, “to accelerate the world’s transition to sustainable energy”.
Global Environmental Concerns & Rising Fuel Costs
Global concerns about global emissions and rising fuel costs have arguably fuelled the popularity of the electric vehicle market. Some of the key challenges that electric vehicles faced when they rose in popularity were:
- The lack of infrastructure in terms of charging points made driving an electric vehicle difficult in terms of everyday use.
- Charge distances lead to ‘range anxiety which discourages motorists from going electric because of fears they could break down on the road.
- The electric vehicles released in the early days of the electric vehicle market were highly expensive and were not attractive to the average buyer. The Model S for example was $96,000 on release in 2012.
Many of these original concerns are being addressed, as mass adoption begins to drive retail costs down and technological advancements improve both range and charge speeds, with many BEVs now exceeding 200 miles and recharge speeds under 20 minutes. In the U.K. alone a vast rollout of EV charging infrastructure has taken place, with over 42,000 chargers spread across 15,000 sites and this is expanding almost daily.
With ever-rising fuel costs, city-by-city clean air zone penalty charges, and the mounting evidence around climate change, we ask; is today the tipping point where owning a BEV makes both financial and environmental sense, without compromising on the convenience we have come to expect from the Internal Combustion Engine (ICE) age?
Tesla as a Super Power on the Stock Market
Tesla is now a behemoth in the stock market and one of the most successful companies in the world today. From humble beginnings to 2021 – they have shown an incredible amount of growth in terms of stock price and market share, which has seen Elon Musk battle Jeff Besos throughout the year in terms of the richest man on the planet.
With an unprecedented rise to the largest car manufacturing on the planet by Market Cap, Almost 1 trillion US dollars (at the time of writing), which is greater than the next nine car manufacturers combined. We ask; whether Tesla can maintain their spark as the dominant EV leader in 2022 and beyond or whether other companies will be able to take their crown in this fascinating race to become the jewel of the next industrial revolution? Let us know your thoughts in the comments!