Not so long ago, Tesla was seen as the beacon of the Electrical Vehicle (EV) industry, building public awareness and unlocking governmental regulations around the world in favor of the electrically powered transportation mode
Legacy car manufacturers, late to the party, were painted as awkward giants, stuck in their old ways, and the Tesla supporters were only too happy to entertain the illusion
In many ways, the trust, gained by Tesla in the early years of electrical innovation, lives on and the company's share price continues to hover between myth and reality
As discussed extensively in "Tesla 2020 and beyond" and in the note attached to our theme, market share attained last year on the 3 key markets, the U.S., Europe and China, is exposed to strong, and growing competition
Europe has been a growth story for EV manufacturers since 2020 (1 million new cars and 10.7% of all registrations) - 2021 (1.7 million cars and 17.8% of registrations) - 2022 (2.6 million cars and 35% of all registrations) and as of June 2023 - 1.4 million plug-in car (22% of registrations) and and the world's largest market after China (5.9 million cars registered in 2022)
In Europe, Tesla has managed to hold on to a 21. 3% of market share of full-electric vehicles (just behind Volkswagen at 21.7% in Q1-2023), as European EVs in a wide price range took off
China has a success for the firm where the local manufacturing plant delivered and sales shot up with more than 51 000 cars in June 2023 and 8.8% of the total EV market - whether the firm will be able to pursue its advance as high-quality domestic manufacturers line up is uncertain, with a limited line-up and strong national sentiment
The U.S. remains Tesla's crowning achievement even though the firm has been losing ground, from almost two-thirds of the American EV market until very recently to just half of the market as of October
Just like in Europe and in China - competition is (finally) catching up...
