Tesla Inc (NASDAQ:TSLA) proved consumers would buy electric cars. Now, both traditional automakers and startups are tapping into that demand. EVs are expected to make about half of total global vehicle sales by 2030. EV penetration in Europe was already approaching one-fifth by the end of 2020. According to Financial Times, Ford Motor Co's (NYSE:F) electric sport-utility vehicle, the Mustang Mach-E, has begun eating into Tesla's market share in the U.S. while in Europe, the world's largest electric-car market, Volkswagen (OTC:VWAGY) beat Tesla to become the top-selling all-electric vehicle maker last year.
Startups are able to compete
Rivian is poised to become the first to deliver the world's first electric pickup truck as it plans to begin selling an electric SUV and electric pickup later this year. It fetched investments from the likes of Ford and Amazon (NASDAQ:AMZN) and raised $8 billion since 2019.
Battery costs should be cut in half over the next half of a decade and growing costs for emissions reduction will help smaller players close the profit gap. Worksport (OTC:WKSP) is one such startup, it's TerraVis system is able to power pickups through solar powered tonneau covers but also used as a remote power source. Atlis Motor Vehicles and Hercules Electric Vehicles already signed up to have this technology configured for their anticipated electric pickups.
Premium automakers are joining as well
Sales of higher-end versions are concentrated in regions where electrification is progressing faster and premium automakers aren't going to miss benefiting from this trend. Even Aston Martin has promised it will build its battery sports car and sport utility vehicle from 2025. Both models will be not be made in plants of its partner Mercedes-Benz who owns 20% of the company but in Aston plants in the Midlands and Wales, while the UK is struggling to attract the investment it needs to secure the industry's future. Ferrari has committed to making battery models by 2030. VW-owned Bentley is planning a battery car for the middle of the decade. Meanwhile, McLaren and VW-owned Lamborghini have not set timelines but did reveal their plans to build their own supercars for the EV era.
Tesla is not slowing down
Tesla's market-share losses in the U.S. and Europe could indicate that competitive dynamics are starting to play out. But Tesla's kingdom is still growing after having delivered nearly half a million vehicles world-wide last year, up more than one-third from 2019, and it is aiming to grow at a faster pace in 2021. It's optimistic, flamboyant CEO with an aspiration for ‘grandiose' ideas, Elon Musk, just crowned himself as the "Technoking of Tesla" with Chief Financial Officer Zach Kirkhorn gaining the title of "Master of coin" with both changes effective Monday, in a filing with the Securities and Exchange Commission.
After years of sluggish adoption, EVs are now poised for a sharp increase in sales. Moreover, a range of revolutionary new products could make ICE vehicles a thing of the past much sooner than anticipated. Welcome to the Golden EV Age.
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