Tesla could lose the throne of electric cars

NEW YORK (Reuters) – Traditional automakers are planning to invest huge sums in electric cars, which could put Tesla, the industry leader, at the helm of producing such cars.

Tesla should not lose its dominance after selling around 500,000 cars worldwide, now accounting for about 20% of all road vehicles, according to estimates by Navigant Research, which eventually transformed the company in profits and reaching its production targets In the United States, Tesla sold 250,000 cars, double the sales of Nissan Lifes, the second-largest electric vehicle in America, and 36,000 Chevrolet Bolt cars since its appearance two years ago .

VW first risk on Tesla

"Volkswagen plans to build and sell 50 million electric cars in the coming years and will be able to set the price of its cars at prices lower than those of Tesla, taking advantage of economies of scale", said Herbert Dees, managing director of Automotive News.

Volkswagen's goal seems to take years, even decades: last year, the company sold 10.7 million cars, mainly gasoline or diesel.

Volkswagen has announced its intention to fully launch a wide range of electric vehicles, the Volkswagen I.D, and other companies are planning to launch their own models.

At the same time, Ford has earmarked $ 11 billion to refocus the company on new products such as cars and electric cars, while GM is also planning its own.

Tesla reduces the risk of competition

For its part, Tesla downplayed the market's fears about its share of the electric car market and felt that increased competition would contribute to the achievement of its overall goal of moving cars around the world away from gas and electricity. diesel with electricity.

"Every convincing electric car on the road is a victory for Tesla," said a spokesman for the company.

Navigant predicts that by 2026, 30 million electric vehicles will circulate worldwide, compared to 2.6 million currently, a huge production that Tesla can not handle alone.

Navigant plans to sell 50% of the cars in the Asia-Pacific region, mostly in China, where Tesla has now started building its first plant in Asia.

Sam Abulsemed, a transportation analyst at Navigant Research, predicted that Tesla's reputation would help to overcome the tide of new established automaker competitions, but said Volkswagen and General Motors had a long history and a lot of automotive construction.

"One of the traditional business areas is the ability to work with their own supply chain to get high quality components and provide raw materials such as lithium and cobalt," he said. -he declares. "They already have factories all over the world".

Tesla will compete unequally with richer carmakers, who are able to mobilize huge financial resources. Elon Musk, president of Tesla, was forced this year not to fear an impending financial crisis – fears that society has relaxed after reaching its production targets. Sedan in October said the profitability of the company would allow it to meet Yona's commitments.

"Other companies have a lot of cash reserves to protect," said Abhay Phadhafar, director of manufacturing, engineering and technology at the Automotive Research Center. They have other products and a larger portfolio. "

But Sam Abu al-Semaid, a transportation analyst at Navigant Research, tackled the main obstacle faced by certified vehicle manufacturers who are trying to produce electric cars that may not be profitable for traders who do little profits by selling new cars and deriving most of their profits Used cars and warranty service, while dealers assume that electric cars will not require a lot of services.