New Delhi:In a few years, Tesla will face stiff competition from traditional automakers like Volkswagen, Toyota and Stellantis, which released their ambitious vehicle electrification plans last year, according to a new report on Monday.
Although it will be difficult for them to overtake Tesla sales in the near future, Tesla will see a reduction in its share in major markets, according to Counterpoint Research.
“The reason behind this is the price range that Tesla operates in. It operates mainly in the high to upper price range, while traditional OEMs plan to launch vehicles in the budget segment,” said Abhik Mukherjee, partner at research.
The rising cost of a few key raw materials and the inflationary impact on production caused Tesla to repeatedly raise the price of its vehicles around the world.
“This could play against new customer sentiment, which in turn will affect next quarter’s financials,” he added.
In the first quarter of 2022, Tesla posted record revenue of $18.8 billion and increased deliveries. During the first quarter of 2022, the company delivered more than 300,000 vehicle units, an increase of 68% (year-on-year).
Tesla also began deliveries to car rental service provider Hertz against its huge order of 100,000 vehicles, which is also a reason for high vehicle production and delivery in the quarter.
“The urge to achieve L4 autonomy by the end of 2023 and to deploy the robotaxis by the beginning of 2025 may be a major reason for Tesla’s large R&D expenditures. In addition, Tesla could also lead research on the development of new battery chemistry,” added Mukherjee.
Soaring prices for some key battery components like nickel and lithium have put automotive OEMs in a tough spot.
“Most electric vehicle manufacturers around the world have been forced to raise prices by a few thousand dollars to meet rising battery-related raw material prices,” the report notes.
After Tesla’s Shanghai factory went live, the company’s sales skyrocketed globally, especially in China.
In 2021, China remained its largest market, followed by the United States and Europe. Besides selling vehicles, Tesla has a strong network of charging stations and insurance services.
Through the first quarter of 2022, Tesla had 3,724 compressors and 33,657 compressor connectors globally.
At par with vehicle sales and revenue growth, Tesla’s gross profit in the first quarter of 2022 reached $5.4 billion.
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