New Delhi: The soaring demand for electric vehicles (EVs) has attracted fierce competition from rival automakers, representing Tesla with its most significant challenge over the next two years.
This occurs when CEO Elon Musk, the world’s richest man, is reportedly engaged with a number of high-profile projects, including artificial intelligence (AI), space travel and social media.
This conclusion comes from the insights respondents provided in the recent Markets Live Pulse survey. 54% of the 630 global contributors to MLIV Pulse expressed concerns over the intensifying industry competition and identified it as a major risk for Tesla.
Additionally, 26% of the respondents cited Elon Musk’s behavior and decision-making as a key concern for the company’s shareholders.
“Musk is just such an unpredictable person that I would count it among one of the top risks for Tesla,” one of the investors says in an interview.
According to a recent survey, 67% of participants believe that Elon Musk should prioritise focusing on Tesla, because profit margins are under pressure. This cautionary sentiment is revealed against the backdrop of Tesla’s stock’s astonishing 128% surge this year, which has been fueled by renewed investor interest in the technology sector and Musk’s optimistic vision of a future dominated by fully autonomous vehicles.
Despite currently dominating both established automakers and emerging startups, Tesla’s considerable market valuation, is largely contingent on the assumption that it can sustain its competitive edge as electric vehicles become more prevalent in the market.
The pressure to maintain dominance in the industry becomes even more critical as competition intensifies and EV adoption increases for Tesla’s continued success.
Yet Tesla rivals are picking up the pace. Just earlier in July, China’s BYD Co. delivered 352,163 fully electric vehicles, setting a sales record for the second quarter. That demonstrates how rapidly it has gained ground on Tesla, which delivered 466,140 EVs to customers globally— an all-time high.
