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The electric vehicle market was very unimpressive at first. But you can make this argument for any technology. Just look at the difference between the Sony PlayStation 1 (SNE) more than two decades ago and its PSVR virtual reality headset.
One could say the same thing for the Apple iPhone (AAPL) against an old Nokia or the current high-resolution 4K TVs compared to the tube TVs we had in the 90s.
Advances in the electric vehicle market are happening quickly and much of it is due to what Tesla (TSLA) has done with its vehicles. The Model S revolutionized the market for electric vehicles, while Tesla finally introduced a vehicle as beautiful as performance, offering considerable autonomy and a battery with very low degradation.
Tesla has an excellent performance at the top of the EV rankings and, according to recent reports for the month of August, it is further strengthening this position as the production of Model 3 continues to improve.
Over the last three years, the Model S has been the most sold in the United States, but its 13,310 shipments to date in 2018 have been destroyed by Model 3, which has delivered nearly 56,000 units this year. Tesla now dominates the top three selling electric vehicles in the US with its S, X and 3 models.
The lowest of the three comes from the X, which shipped 13,600 units. Yet, this is 3,300 units (about 30%) more than the nearest pure-EV vehicle, the General Motors (GM) Chevy Bolt.
It should be noted that, on the year – to – date list, the Toyota (TM) Prius Prime is sold at more than 18,000 units and that the Chevrolet Volt has sold more than 11,000 units. However, both are hybrids and therefore, not pure EV vehicles.
Will Tesla's dominance continue?
The answer is yes – for the moment.
The report above was retweeted by Tesla CEO Elon Musk, who shared with his 22.5 million followers and likely to act as a catalyst for the title, up 1.3% on the day, to 285 million. dollars.
Tesla 1st, 2nd & 3rd August sales in August https://t.co/npDKC9QEpP
– Elon Musk (@elonmusk) September 6, 2018
The I-PACE Jaguar is expected later this year, while the Audi e-Tron is expected to come out early next year. The Taycan Porsche is expected to arrive in late 2019 or early 2020, but Porsche will only make 20,000 units in the first year.
Mercedes-Benz and General Motors are also promoting electric vehicles and hybrid vehicles, highlighted by the introduction of the new EQC earlier this week.
Overall, Tesla has a backlog for Model 3, totaling hundreds of thousands of dollars. The bears will counter and say that these orders can be canceled and should not be counted as money in the bank. Given his precarious financial situation, it is a regrettable truth for Tesla.
But that does not mean that they should be ignored. There have been production problems and quality issues with model 3, but until now, this has not turned consumers away from Tesla. What we do not know is how many of these bookings are waiting to acquire Model 3 at short range, given that Tesla currently produces only the long-range model 3.
So, it is too early to say that Tesla is out of the ordinary about his financial situation. But the demand seems to be anything but a problem. And this should remain the case, easily until the end of the year and probably until 2019. Beyond 2020, competition will increase significantly compared to the current market for electric vehicles, and Tesla will have to stick to account if she wants to stay at the top.
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