Tesla may dominate now, but its competitive edge may not last.
It isn't difficult to see why Tesla has been so dominant in the EV market. The Californian carmaker produces models with far longer range, more style, and nicer interiors than less expensive EVs. Although Tesla has been dominant in the market so far, this success may start to peter out as other luxury automakers start to introduce EVs. In fact, Bloomberg's Leonard Kehnscherper reports that Tesla could be overtaken by several automakers as soon as 2021.
BMW is working on next-generation electric models that will crush Tesla's current driving range. Likewise, the Porsche Taycan (formerly called the Mission E) should match Tesla on performance and style. A study conducted by PA Consulting shows that Tesla will remain the number one EV manufacturer in 2019, followed by the Renault-Nissan Alliance, BMW, Hyundai/Kia, Daimler, Volvo, and Volkswagen. By 2021, the study predicts that Tesla will be overtaken by Daimler, BMW, Renault-Nissan, Volkswagen, Volvo, and Toyota. As more automakers roll out EV models, Tesla is predicted to fall to seventh place while Daimler captures the lead.
The study doesn't just take sales into account, it also factors in strategy, battery technology, culture, supplier networks, partnerships, and financial performance. Tesla may be dominating in 2018, but it may lose its edge sooner rather than later.