Steve Westly, a former Tesla board member, told CNBC that Tesla will soon be facing intense competition in the electric vehicle industry.
Tesla is currently the leader in the EV sector, generating $31.5 billion in 2020. In its January earnings release, it believes that it will achieve a 50% average annual growth in its vehicle delivers. Stocks are also up by about 360% and the auto company has the largest market capitalization in the industry.
However, other automakers are quickly joining the market with their own electric cars.
“[…] what’s interesting is Tesla is not just getting hit from the high end,” Westly noted.
In addition to Audi and Porsche‘s luxury EVs, affordable EVs are also planned to compete with Tesla. Chinese companies, such as Nio and Li Auto, are currently making cheaper EVs for consumers on a budget.
“They’re getting competition from all sectors. They’re going to have to double down to compete,” Westly added.
Tesla is already seeing trouble in Europe. Based on European EV rankings, the company dropped from first place to fourth place. However, it’s expected that when Giga Berlin begins its operations during summer 2021, it will bring at least 500,000 vehicles to the market every year.
Set to also produce the Model Y, which is currently exclusive only in North America and China, Giga Berlin may be able to push Tesla back to first place.
