Who are the main competitors of Tesla (TSLA)? (2023)

Tesla: an overview

Tesla Inc (TSLA) is an American designer, developer, manufacturer and distributor of electric cars and powertrains led by serial entrepreneur Elon Musk. The company was founded in 2003 and is headquartered in Palo Alto, California. As of August 2022, Tesla had a market cap of $884.91 billion.

In 2021, Tesla said it would begin production of its Cybertruck, an EV pickup with a range of 250 miles per charge, in 2022. However, after rumors that the new model would be delayed, Elon Musk confirmed that Tesla would not launch any cars in 2022 and that the Cybertruck would not be produced for sale until 2023 at the earliest.

On the other hand, Tesla's first electric truck models, originally planned for 2019, were delivered to PepsiCo in December 2022. Musk said the company aims to produce 50,000 Semis for North America by 2024.

Tesla is also involved in providing services to other auto companies, such as through the sale of its battery technology.

However,TeslaIt has two main revenue segments: automotive sales and development services. Car sales make up the largest portion of sales.

Tesla posted significant growth after years of breakeven: Reported full-year net income for 2021 was $5.524 billion, up 700.58% from 2020, and reported full-year net income for 2022 was $12.583 billion, up 127, 79% from 2020 2021. In the third quarter of 2022, Tesla net sales were $3.714 million, up 59.67% year-on-year.

the central theses

  • Tesla has several competitors among traditional automakers like Ford and Honda.
  • Tesla has managed to find success by focusing on premium electric vehicles (EVs).
  • However, there is now more competition in the high-end driverless and electric vehicle market.
  • Ford, General Motors, Nissan, Nio, and Honda are some of Tesla's main competitors.
  • However, when it comes to luxury EVs, Tesla reigns supreme.

Tesla's competitors

Tesla may be the best-known company in the electric vehicle industry, but that doesn't mean it's the only one.

Traditional automakers are expanding their offerings of gasoline-electric hybrid cars, as well as pure electric vehicles like the Nissan Leaf. Additionally, in China, where Tesla is a well-known brand, Tesla has only 6.6% of the EV market share.

Competitors continue to step up manufacturing and distribution efforts, and for good reason. Fortune Business Insights estimated a 24.3% annual growth rate for the global electric vehicle industry, from $287.36 billion in 2021 to more than $1.3 trillion in 2028.

Still, Tesla cars carry a certain high-end cachet that has yet to be matched by established automakers.

Below are some of Tesla's main competitors.

Ford Motor Company

Ford Motor Company (F) is a multinational automobile manufacturer founded in 1903.It focuses heavily on electric cars, trucks, and SUVs. Ford's Mustang Mach-E model received the 2021 Car and Driver's first Electric Vehicle of the Year award.

According to Ford, the company will invest $22 billion by 2025 to drive vehicle electrification. The aforementioned Mustang, F-150 Lightning pickup, and E-Transit pickup are just three EVs in the upcoming lineup. Additionally, Ford is focused on building electric vehicles that deliver the legendary attributes it is known for: performance, capability and productivity.

One of Ford's target markets is all-electric pickups and commercial vehicles. It intends to offer the benefits of electric vehicles through affordability and lower running costs.The F-150 Lightning all-electric pickup was officially unveiled in April 2022. Since then, more than 4,400 copies have been sold.

Ford is headquartered in Dearborn, MI. As of August 2022, the market cap was $63.31 billion.

General Motors

General Motors (GMlisten)) is a United States-based automobile manufacturer, founded in 1908.GM is responding urgently to climate change and is committed to an all-electric future.

GM plans to design, engineer and manufacture electric vehicles for all styles and price points, including a 400-mile range Chevrolet Silverado EV. In addition, it is also building a competitive advantage in batteries, software, vehicle integration and manufacturing.

The company will invest $35 billion in electric vehicles and autonomous vehicles (AVs) worldwide by 2025. It forecasts that it will sell one million electric vehicles annually in North America and China. GM has sold more than 100,000 Bolt EVs since its introduction in 2017. The Bolt has received some of the best satisfaction and loyalty ratings in the industry. Three-quarters of Bolt EV buyers in the US are new to GM.

Batteries are an important part of GM's EV strategy. Its Ultiumba battery packs cost almost 40 percent less than those in Chevy's Bolt EV. Additionally, the company has estimated that its second-generation Ultium packs will cost about 60% less than batteries currently used in cars. Its manufacturing platform will power batteries for all of its electric vehicles, based on a single common cell and interchangeable powertrain components.

General Motors is headquartered in Detroit, MI. The EV batteries are manufactured in Lordstown, OH. As of August 2022, it had a market cap of $58.39 billion.


NIO Inc.(NIÑO) is a Chinese holding company that develops, manufactures and sells high-quality intelligent electric vehicles for the international market. These include the EP9, which it claims is among the world's fastest electric cars, and its flagship SUV, the ES8. Nio also provides energy solutions to its customers, including public charging access, mobile charging truck access and battery swapping.

According to NIO, it is known for its "continuous technological advancements and innovations, such as its industry-leading battery-sharing technologies, Battery as a Service or BaaS, as well as its proprietary autonomous driving and autonomous driving as a service or ADaaS technologies."

In July 2022, NIO delivered 10,052 vehicles. That was an increase of 26.7% year over year. During the year through July, 60,879 electric vehicles were delivered, a 22% increase from a year ago.

The company was founded by Li Bin and Qin Li Hong in November 2014 and is headquartered in Jiading, China. The autonomous driving research and development center is located in San Jose, California.As of August 2022, NIO had a market cap of $32.85 billion.


Volkswagen is one of the largest automobile manufacturers in the world. Products and brands with a high recognition value include Volkswagen, Audi, Bentley, Lamborghini, Porsche and Skoda.

A decade after Tesla burst onto the EV scene, Volkswagen has been quietly moving forward. It estimates that 50% of its U.S. sales will be electric vehicles by 2030. Tens of billions are spent to achieve this goal. The company also plans to produce 1.5 million electric vehicles by 2025 to help buyers meet expected EU emissions targets.

In 2019, Volkswagen announced that it would launch almost 70 new electric models over the next ten years. On this basis, it was expected to build 22 million vehicles on electric platforms.

Volkswagen is developing a comprehensive decarbonization program that commits to the goal of a CO2-neutral balance in all areas, from the fleet to production and administration by 2050.

Founded in 1937, Volkswagen has survived World War I, countless boom-and-bust cycles, as well as the infamous 2015 emissions scandal in which the company admitted that many diesel-powered VW cars sold in the US had built-in software that could detect WHEN emissions have been tested and could change performance for better results.

Volkswagen has its headquarters in Wolfsburg, Lower Saxony. As of August 2022, Volkswagen had a market cap of $85.66 billion.

On November 15, 2021, President Biden signed the law into lawInvestments in infrastructure and employment law. The bipartisan Infrastructure Act authorizes $1.2 trillion in spending, including funding for the following initiatives:

  • Construction of the network of charging stations for electric vehicles: $7.5 billion
  • Roads and bridges spending: $110 billion
  • Investments in broadband and internet access: US$65 billion

The legislation is good news for Tesla and other electric vehicle manufacturers in the United States, as it will accelerate the deployment of electric vehicle chargers along highways and in local communities across the country. The legislation aims to increase EV adoption by expanding the network of EV charging stations to 500,000 across the country.

What is Tesla's competitive advantage?

Market share is an important competitive advantage that needs to be conquered and maintained. Tesla has four electric vehicles that own part of the electric vehicle market. As of October 2022, the top five selling cars and their market share for the second quarter were:

  1. Tesla Model Y (30.4% market share)
  2. Tesla-Modell 3 (27,8 %)
  3. Ford Mustang Mach-E (5,6%)
  4. Tesla-Modell S (4,6 %)
  5. Hyundai Ionic 5 (3,8%)

(Note that Tesla's Model X took eighth place with 3.3% market share.)

Tesla is still the dominant player in the overall luxury car market, but not necessarily in the electric vehicle market. According to Cox Automotive, Tesla was the best-selling luxury brand in the United States. This comparison included well-known names such as Audi, BMW, Cadillac, Lexus and Mercedes-Benz.

However, Tesla's share of the EV segment is declining as the EV market grows and more manufacturers enter the EV market or establish a larger footprint. In 2022, Tesla's market share fell from about 72% in 2021 to about 65% of new electric vehicle sales. Tesla market share in the US.

Despite the decline in electric vehicle market share, Tesla continues to expand its global market share. In 2022, Tesla's market share in the US and Canada was nearly 4%.

Possible competitive advantages

  1. Whether or not it continues to be a leader in the electric vehicle industry, Tesla has strong brand recognition. Plus, you get constant word of mouth.
  2. For autonomous driving, Tesla may have around two billion miles of data collected through its Autopilot driver assistance feature. It is believed that this data can and will improve Tesla's autonomous driving algorithm.
  3. Tesla's batteries continue to power their vehicles more than most. The Tesla Model S has a range of 405 miles.

Who is Tesla's biggest competitor?

Tesla has a number of major competitors. Among them, Nio can be considered as one in China, although it has delivered fewer vehicles. Ford continues its march with its electric vehicles, including the popular Mustang Mach-E and pickup F-150 Lightning.

Who are Tesla's 3 main competitors?

Ford, GM, NIO and Volkswagen are four of Tesla's main competitors. In 2022, Chinese manufacturer BYD sold more than 1.85 million plug-in electric cars, more than trebling its 2021 figure of 593,745.Another Chinese company, SGMW, surpassed 1.6 million units in the same year, so both companies need to be considered.SGMW is a joint venture between SAIC Motors of China, General Motors and Liuzhou Wuling Motors Co. Ltd. Of all these players, Tesla currently has the largest market cap.

How many electric vehicles has Tesla sold?

Tesla vehicle deliveries totaled nearly 405,300 units in the fourth quarter of 2022, a new record for the brand. Here is a breakdown of the number of Tesla vehicles delivered worldwide by 2022 (in 1,000 units):

  • Q1: 310.05
  • P2: 254,7
  • Q3: 343.83
  • Q4: 405.28

Total for 2022: 1,313.86

The final result

While it has a massive market cap and is still known for establishing the electric vehicle market, Tesla has to contend with an increasing number of strong competitors.

Ford, GM, China's NIO and Germany's Volkswagen are just four of many automakers making headlines and gaining market share with their electric vehicle efforts.

Tesla can rely on its innovations and brand ambassadors to maintain a top position in the electric vehicle leaderboard. However, it looks like the challengers, with their own breakthrough advances in manufacturing, battery technologies and advances in autonomous driving, will have a lot to say on the subject. For now, at least, Tesla remains at the forefront of the luxury car market.

Correction: 7/2/2023:A previous version of this article incorrectly reported the number of Tesla vehicle deliveries for 2022.


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