Published: September 29, 2022
The serial entrepreneur Elon Musk is the CEO of the American-based company Tesla.
The electric car and powertrain developer, manufacturer, designer, and distributor began operations in 2003 as a specialized company in electric vehicles, storage products, and scalable clean energy generation.
Despite this scale of operations, some competitors give Tesla a tough time operating in the car industry.
Read on to find out who they are.
Who Is Tesla’s Biggest Competitor?
(Source: Investopedia / Automotive Fleet)
Tesla has a lot of competitors. However, the American multinational automobile manufacturer Ford is currently Tesla’s biggest rival. The company is set to invest $22 billion until 2025 to continuously pursue vehicle electrification.
Aside from the Lincoln brand, Ford has stakes in several other automakers, including Aston Martin and Mazda. Ford is still producing electrical vehicles, including the famous Mustang F-150 Lightning and Mach-E pickup.
More Stats and Facts About Tesla
Tesla was the world’s most valuable automotive brand in 2021. It has a brand value of more than $42 billion.
Even being this valuable, Tesla still has strong competition. Read on to find out more.
Who are Tesla’s competitors?
(Source: Statista / Investopedia)
Besides Ford, Tesla’s competitors are NIO, GM, Volkswagen, and even the Chinese company BYD. BYD sold more than 590,000 vehicles in 2021. Tesla delivered 935,950 units in 2021.
Still, Tesla currently has the highest market capitalization of any of these players.
Tesla is the sixth most valuable company by market cap globally.
(Source: Companies Market Cap)
Tesla has a market capitalization of $895.37 billion as of the time of writing. The market cap is commonly used to determine the value of a company.
The market capitalization at the end of 2020 was $668.90 billion, but it was at its highest in 2021 at $1.061 Trillion.
Tesla Model Y was the top sold car for Q2 2022.
Tesla has four electric vehicles and controls a portion of the electric vehicle market. Three of the top five selling cars in Q2 2022 are owned by Tesla.
Tesla Model Y owns 30.4% market share, while Tesla Model 3 owns 27.8%. On the other hand, Ford Mustang Mach-E owns 5.6%, Tesla Model S 4.6%, and Hyundai has IONIC 5 only 3.8%.
BYD, one of Tesla’s competitors, has sold more vehicles in 2022.
Despite the automotive semiconductor shortage, Tesla reached 935,950 delivered units in 2021.
Tesla’s Model 3 was the first electric vehicle to sell one million units worldwide in 2021. The model is the cheapest Tesla car and was the world’s best-selling plug-in EV model in 2021. However, China had the biggest electric vehicle fleet in 2021.
BYD sales surpassed Tesla’s for the first time in 2022, selling more than 183,400 vehicles than Tesla between January and July this year. However, despite the American brand’s financial success during the pandemic, Tesla faces increasing international competition.
Tesla continues to dominate the luxury car market.
(Source: Cox Automotive)
Tesla is a dominant player in the luxury market but not in the EV market. Nevertheless, the US brand was the top-selling luxury brand in the US in Q2, outselling all well-known names such as Audi, Mercedes-Benz, BMW, Lexus, Cadillac, and others.
Tesla’s market share in the EV segment is decreasing as new competitors enter the industry. In Q2, it was 66%, a 9% decrease from the previous quarter. So, Tesla’s EV market share is expected to decline as the EV market grows.
The amount Musk makes in a day is determined by how well the Tesla stocks perform on Wall Street.
While Tesla has a massive market capitalization and is famous for pioneering the electrified vehicle market, it’s facing an increasing number of serious competitors.