5 reasons why the electric car king Tesla will lose his dominance

Tram Ho

Tesla has built a stronghold in the electric vehicle (EV) market for more than a decade. But no company can dominate for too long without enough effort in every journey. For Tesla, it looks like that time is coming.

Many competing manufacturers have pledged to move to selling all electric vehicles one day. Even the luxury brand Rolls-Royce, which doesn’t compete directly with Tesla, is working to transition to fully electric vehicles by the end of the decade.

Tesla has been on a tumultuous path since the company’s founding. This brand’s position in the market is gradually shaking, and this may be the reason why the number of potential buyers will soon fall out of their hands.

High performance cars do not live up to expectations

The 2022 Tesla Model S Plaid was one of the company’s “most hyped” cars, and now it’s disappointing users because it’s overrated compared to actual expectations.

5 lý do khiến ông hoàng xe điện Tesla sẽ đánh mất sự thống trị của mình - Ảnh 1.

While not a bad car, it hasn’t delivered on many of the promises the company has made. In particular, it did not achieve the speed of more than 320 km / h promised in the test. The actual Tesla S Plaid just barely surpassed the speed of 257 km / h, and reached a maximum speed of 260 km / h.

Many companies are committed to switching to pure electric vehicle production

Users previously had almost no choice because Tesla was one of the only electric vehicle manufacturers to create cars with a large range. This is the only car company that has many drivers in crowded cities. Now, however, this is no longer the case.

5 lý do khiến ông hoàng xe điện Tesla sẽ đánh mất sự thống trị của mình - Ảnh 2.

Cars like the Chevy Bolt, the Ford F-150 Lighting, even the Mercedes-Benz EQS are all ready to compete. Some automakers such as Volkswagen and Acura have also committed to making electric vehicles only for the next few years. Before long, the market will be saturated with electric vehicles and Tesla will no longer be the big player in this field.

Old car depreciated

Because the technology is so new and unreliable, Tesla and all electric cars tend to depreciate at an exponential rate. After three years of ownership, cars like the Tesla Model S depreciate by nearly 37%.

There’s some consolation for Tesla, however, as the Model 3 retains a large portion of its resale value despite the volatile market for used electric vehicles. When electric vehicles become the dominant choice of the market, the issue of resale price will be of particular concern to users.

Volatility in the stock market

Speaking of stocks, Tesla stock has seen some troubles lately. Although the value of the company’s stock remains high, the stock market can sometimes be quite ruthless. In January 2022, the value of Tesla’s stock fell by nearly $100 per share and then rose again. Recently, the stock price has continued to fall when the safety of Tesla cars is not appreciated by Consumer Reports.

5 lý do khiến ông hoàng xe điện Tesla sẽ đánh mất sự thống trị của mình - Ảnh 3.

A common cause for the stock market’s volatile reaction is attributed to CEO Elon Musk’s sometimes erratic behavior. Musk is unpredictable, especially on Twitter. When the Tesla CEO tweeted about an alleged deal Tesla made with Hertz that had not been finalized, Tesla stock took a hit. Musk is also under federal investigation into how some of his tweets may have affected Tesla stock.

More brands are making higher quality EVs

Ultimately, Tesla isn’t the only one in the EV game. As mentioned above, some manufacturers have committed to not only entering the electric vehicle market, but also aspire to monopolize the production of electric vehicles on a certain date between now and the 2030s. ready to confront Tesla like Chevrolet, Mustang, Chrysler,…

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Source : Genk