When it comes to EVs, Tesla is still the king of the hill. With their dominance in the share of zero-emission technology and their famous branding, Tesla was easily doing better than other brands that were pursuing the EV line of production. However, as the years have gone on, it would seem as though Tesla's supremacy in the EV market is coming to an end.
With the growth in other companies launching EVs, alongside boosts in investments for EV innovation, there has been a shift in who is capable of producing these new, technologically-advanced, and fast electric vehicles. There is a definite increase in the competition for EVs as the world goes electric and because the Tesla brand isn't as attractive as it once was.
8 Telsa Isn't Meeting Its Own Deadlines
Tesla has always had a problem with meeting deadlines. The Model 3 experienced plenty of missed deadlines, with Musk claiming in 2018 'How am I supposed to know with precision when it’s going to get done?'
This isn't great among consumers when brands like VW and Audi are consistently producing EVs on time and without delay. As such, it is easy to opt for brands that have been around for a long time and for brands who are being reliable in their launch times. As such, it is difficult to hold on to those consumers who want reliability in deadlines.
7 Quality Concerns
Via InsideEVs
Quality concerns in Tesla models are increasingly becoming relevant. Stories of body panels and parts falling off are quite common and many aren't happy about this when they consider the price and prestige that has been associated with Tesla.
German brands like Audi and BMW have much better quality, and have long been pioneers of vehicles. With their entry into the EV market, they reflect trustworthy build quality and the engineering in which they are well known for.
6 More Brands Are Embracing EVs
As mentioned in the previous point, brands like VW and Audi are becoming keen producers of EVs. With the Audi e-tron GT being released in 2021, and already receiving good reviews, many are seeing the rise in competition and the new technology being placed into other brands.
For Tesla, this means that it may be difficult to hold their supremacy in EVs because there are going to be so many alternate options, with some coming from favourite brands that have existed for along time.
5 Government's Are Offering More Support To Develop EVs
In countries like the UK, there have been some offerings to help innovations of EVs. For example, a recent £20 million fund has been announced in order enhance the creation of zero-emission vehicles. Such a fund can help enhance battery recycling and the updates to charging tech.
With the offering of such support, brands can develop their EV vehicles in order to ensure their security into the future as zero-emission vehicles are becoming increasingly popular. This means that for Tesla, brands are capable of innovating in ways that they were not able to before. With this in mind, the supremacy of Tesla may struggle to go on for much longer.
4 There Has Been A Growth In Rivals To Tesla Cars
There has been a considerable growth in genuine rivals to Tesla's vehicles. The Cybertruck was a fairly unique vehicle upon its reveal, however with the launch of the Rivian R1T and deliveries beginning in June 2021, there is a definite rival to the Cybertruck on the roads.
The Porsche Taycan is also a massive rival to the Model S. The Porsche Taycan is the official holder of the fastest 4 door saloon to go around the Nurburgring. However, Tesla has an unofficial statistic that says it beats the Taycan. Even if the unofficial statistic is correct, the Taycan is still a close rival and offers the prestige associated with Porsche and the Porsche build quality too. This may make it difficult for Tesla to win over consumers who love the Porsche brand.
3 Elon Musk's Personal Brand Is Worrying Investors
Elon Musk's own life is worrying investors through his nonsensical tweeting. Often tweeting some bizarre things - especially with a joke about Tesla going bankrupt actually led to stock plummeting and when he made comments about a rescue diver.
Not only this, but his celebrity personality is harming the brand as Musk takes many comments personally and because he can perform quite erratically. This may leave investors concerned with what he is going to say or do next that may actually affect stock levels.
2 The Initial Attraction Is No Longer There
The initial attraction to Tesla is no longer there because when the brand first launched, the novelty of the instant acceleration that EVs offer and the futuristic design and marketing techniques used by Tesla were very captivating. However, as time has gone on, other brands have matched or even beaten the acceleration.
Brands like Polestar and Rivian have usurped Tesla's design advantage, and bring better designs and build quality. Now, Tesla doesn't stand out from the crowd like it used to. Its battery tech might still be impressive, but other brands have offered more complete packages.
1 The Emergence Of Alternative Fuel Sources
Emerging fuel sources such as synthetic fuel is a carbon neutral solution to powering regular ICE cars. Porsche for one has invested billions in synthetic fuel technology and hopes that cars will be able to run on the substance in the future.
Also, hydrogen fuel is better for the environment than battery electric vehicles. Hydrogen reacts with oxygen to produce electricity and the only byproduct is water. The problem is, the technology is very expensive and obtaining pure hydrogen is very difficult at the moment. But it looking to be something important in vehicles in the future.