Here we talk about future forecast for EV makers and one of the giant’s Tesla and its breakthrough.
Tesla is the number one electric vehicle manufacturer in the world. However, with the growing EV popularity, many other companies have also jumped on the bandwagon in a bid to secure their future.
18 Months For Tesla To Play Safe
According to recent reports, Tesla has around a year and a half in which it can safely maintain its position as the number one EV manufacturer in the world.
After this, things will start getting difficult for the company mainly because other giants such as VW are quickly catching up.
What Does Bloomberg Have To Say About This?
Bloomberg recently stated that the electric vehicle market which was operating at around 6% globally in 2021 will expand to approximately 15% by 2025.
This is a huge increase and thus Bloomberg has carried out research on how the segment is likely to expand and which companies are likely to play a major role in it.
Major Barriers To Entry In The EV Segment
According to Bloomberg, for now, the two main barriers to entry to the EV segment are the
- High battery cost;
- Scalability problems.
However, in the times to come, both of these issues will be resolved. By 2025 and 2026 the new EVs will be available to be mass manufactured.
Besides this, the development in the LFP battery, as well as the various battery configurations, is now making it easier to manufacture batteries not just on a large scale but also at cheaper costs.
VW Is Coming Up Strong
Bloomberg is confident that the pace at which VW is presently operating will enable the company to overtake Tesla in terms of volume by 2024.
This will mainly be possible because the German automaker is ramping up the number of models available to customers, thanks to its MEB platform.
The VW ID.Buzz, ID.3 and ID.4 are already attracting the attention of customers and those looking for EVs from VW have more options than ever before. This means that the competition is getting tougher for Tesla with every passing day.
Tesla has held the number one spot in the EV segment for several years. However, experts now believe that, in addition to VW, many other automakers are now working hard to offer their EVs to customers. This will eventually bring Tesla’s sales down.
Will The Situation Continue This Way Forever?
Indeed, the EV sales of most major German automakers other than VW are still very low when compared to Tesla, but it won’t stay this way forever.
Mercedes and BMW are also beefing up their EV lineup and Ford, on the other hand, has also decided to completely separate the ICE segment from the EV platform. This will aid the company in streamlining the process and boosting production.
Tesla’s Issues Tarnishing The Brand’s Image
On the other hand, Tesla has not been able to match the hopes of customers.
Several delays in terms of the Tesla Roadster, CyberTruck and Tesla Semi have infuriated many customers who will make the jump to other brands whenever they find an alternative.
Concurrently, Hummer EV along with Rivian are now doing much better and these steps will finally take away the charm from Tesla in a future not so distant from now.
Chinese EV manufacturers are also gearing up in terms of sales and are now exploring new domains.
Another manufacturer called VinFast from Vietnam has also entered the US segment and is likely to establish its factory in the USA soon.
The company has already been praised even by the President of the United States of America which shows how well it is doing for now.
Final Verdict
While other automakers such as VW, Ford, GM, Rivian and Mercedes are offering more EV models than ever before, Tesla is still playing in the safe domain mainly because of its first-mover advantage.
This is why we believe that while the future might be different for Tesla, in terms of sales, the US EV giant will continue to enjoy the top spot for the next 18 months.
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