Tesla Motors, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F) – These automakers have pledged to catch up with Tesla and destroy electric vehicle leadership: Is that a lofty goal?
Tesla, Inc. (NASDAQ: TSLA) by virtue of its first-mover advantage, has maintained its leading position in the electric vehicle industry. The field, however, is getting crowded as the days go by given government mandates, environmental concerns, and the allure of the huge market opportunity.
Tesla has been the benchmark for all late entrants and legacy automakers, which have developed ambitious plans to transition to electric vehicles. Just last week, Stellantis SA (NYSE:STLA), formed by the merger of Fiat Chrysler and French group PSA, said it will eventually try to win Tesla’s leadership in electric vehicles.
Here are a few companies that are being challenged by Tesla:
Stellantis sees a healthy rivalry Stellantis confident of catching up with Tesla in next two years, CEO Carlos Tavares said Friday during a televised question-and-answer session with reporters.
“”I’m very confident, I try not to be arrogant,” the CEO said.
“It will be very healthy competition.”
Travares also highlighted the importance of establishing charging infrastructure in Europe and the United States to catalyze increased adoption of electric vehicles.
Ford counts Tesla and Nio among its rivals: Ford Motor Company (NYSE: F) CEO Jim Farley took a step further. During the company’s fourth quarter earnings call, he said if Ford had enough production capacity to meet current demand for its battery electric vehicles, it would have given Tesla’s Model Y SUV a struggle. hard work to become the leading BEV nameplate in the United States.
Farley, during a speech at the Wolfe Research Global Auto, Auto Tech and Mobility Conference, explicitly named Tesla and the Chinese electric vehicle startup Nio, Inc. (NYSE: TSLA) as a competitor to Ford.
“We have to beat them, not match them,” the CEO said.
Volkswagen is aiming for pole position: Volkswagen AG (OTC: VWAGY) the goal is to “secure a pole position”, said the CEO of the German automaker. Herbert Diess said at the company’s Power Day event held in March 2021.
Related Link: EV Week in Review: Tesla Feels Higher Entry Costs, Nio’s Hong Kong Listing Protects Against Delisting Threat, Rivian’s Youth Issues at the Forefront and More
Overconfident GM: General Motors Corporation (NYSE: GM) CEO Mary Barrymeanwhile, made the company’s intent very clear.
In an interview with CBS News, Barra said, “We want to be at the forefront of electric vehicles. Complete stop.”
Tesla will face additional competition from the Japanese auto giant Toyota Motor Corporation (NYSE: TM), which has splurged to pursue its EV ambitions. Additionally, there are startups that clone Tesla’s business model to succeed.
Does this put Tesla on the back? There’s no denying that Tesla has divested shares in geographies where the electric vehicle maker has established operations. However, it’s too early to tell if Tesla risks losing its pole position in the industry.
GM, for its part, faced a debacle with its Chevy Bolt EV and had to recall every vehicle it sold due to the risk of the batteries catching fire. Despite the unwavering support of the President Joe Biden and the heavy investments the company has made, the automaker hasn’t made much headway.
Earlier this year, the company said it was investing $7 billion in four Michigan manufacturing sites and said it hopes to have annual production capacity of 1 million electric vehicles by 2025.
For the uninitiated, Tesla has sold nearly a million vehicles in 2021 and has an annual production growth target of 50%.
Volkswagen is making inroads in certain markets, such as Europe. However, we see it floundering in China, the world’s largest market for electric vehicles.
Toyota, meanwhile, is bogged down because of its late start. The company has until recently bet on plug-in hybrids. Nevertheless, he put his best foot forward. The company is set to launch its first consumer electric vehicle – bZ4x – later this year.
Ford presents itself as the only serious competitor, given its aggressive electrification strategy.
Despite stiff competition, Tesla, with its charismatic and visionary leader Elon Musk, East still a force to be reckoned with, and it may not be soon that the leading electric vehicle manufacturer will face a real challenge.
Tesla closed Friday’s session down 5.12% at $795.35.
Related Link: Tesla Named ‘Best Overall Luxury Brand’ for Third Year in a Row: What It Means for EV Stock
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