E-vehicle market is Tesla, jumbled field of also-rans
Although it has become the world’s most valuable automaker, Tesla still has to figure out how to become consistently profitable, reduce quality problems in its luxury cars and more quickly turn alluring prototypes into mass-produced vehicles.
One area where it hasn’t had much to fret about: competition.
Over the last year or so, several automakers have added heralded new models intended to cut into Tesla’s electric dominance. But they have barely made a dent. Sales of the Jaguar I-pace, an electric sport utility vehicle similar to the Tesla Model Y, had just more than 1,000 as of mid-july. Porsche has reported similar sales for its electric sedan, the Taycan.
Audi had sold about 3,000 of its E-tron this year.
“Obviously from the numbers we’re seeing, these cars aren’t setting the world on fire,” said Karl Brauer, an independent auto analyst.
General Motors has fared somewhat better with its Chevrolet Bolt, which the company introduced in 2016. The company has sold more than 8,000 Bolts this year. Sales of the Nissan Leaf have topped 3,000.
Tesla, which does not break out sales by country, is operating at a different level. Analysts said Tesla’s 50-state sales total probably exceeded 70,000 cars. Globally, the company delivered about 180,000 cars in the first six months of the year.
Of course, electric vehicles, including Tesla’s, represent a tiny proportion of auto sales, which totaled more than 17 million in the United States last year. Electrics are a bigger part of the new-car market in Europe, and Tesla faces more competition there than in the United States, but not a lot more. China has many homegrown electric carmakers, but they tend to make cheaper vehicles. Regardless of the market, though, EVS are the fastest-growing segment of the auto industry.
Tesla’s dominance can be explained in part by its head start. It has been selling electric cars in significant numbers since 2012. The company and its chief executive, Elon Musk, have also built a fervent fan base that few other automakers, save perhaps high-end sports car brands such as Porsche or Ferrari, can claim.
One of the biggest shortcomings of competing models is range — the distance an electric car can go before needing to be recharged. The maximum for the E-tron and Taycan is about 200 miles. The I-pace and Bolt go about 235 to 260 miles. The least expensive Tesla Model 3 has a range of 250 miles, and most of the company’s cars go 300 miles or more.
Sam Abuelsamid, an analyst at Guidehouse Insights, said that the Audi, Jaguar and Porsche vehicles were superior to Teslas in some ways — such as look, feel and finish — but that their limited range had put off buyers.
Mercedes-benz and BMW have been slower to introduce electric vehicles in the United States.
That has left the field open for Tesla, and investors have taken note. The company’s stock has soared this year, climbing from $510 in early January to about $1,600 in mid-july.
A stronger competitive push may come soon. By the end of this year, Ford Motor expects to start selling an electric SUV, the Mustang Mach-e, that is styled to look like the company’s famous sports car. GM has said it will offer a new Bolt with longer range by the end of this year, followed by more than 20 other electric models over the next three years.
Volkswagen next year will begin selling an electric SUV, the ID4, which will also have a range of 300 miles. And various startups are raising billions of dollars to challenge Tesla. Among the most promising is Rivian, which is backed by Amazon, Ford and other investors.
Polestar, owned by Volvo and Volvo’s Chinese parent, Zhejiang Geely Holding, has a hatchback that is supposed to go 275 miles before needing a recharge and has the kind of agility — zero to 62 mph in less than five seconds — that appeals to aficionados. It will start at $59,900 in the United States, and buyers will be able to claim a $7,500 federal tax credit and state incentives.