The rise of Tesla has been one of the most significant reasons for such massive EV adoption that we are witnessing today in the United States of America. Tesla’s innovation made electric vehicles go mainstream and established them as a practical solution for the future of the automobile.
But now it’s getting out of hand. Tesla alone has captured more than 60% of the EV market share and technically made the eclectic vehicle market unipolar. Now Tesla has started eradicating the remaining competition in the EV industry by offering cars at a very competitive price and features too good to be true.
Now you may say, it may sound theoretically right but practically no company will stop making electric vehicles just because Tesla is winning. Ladies and Gentlemen here are some facts:
- Nissan is to discontinue its affordable EV “the Leaf” and replace it with some other EV which is yet to be revealed. The Leaf’s replacement is expected to hit the market in 2026.
- Mazda is discontinuing its MX-30 EV in the US after the 2023 model year but will continue selling it in Japan and Europe, focusing on plug-in hybrid EVs in the US.
- GM ending Chevy Bolt EV production
- Toyota primarily focusing on hybrid electric cars and is pushing its EV plans far behind.
All the major Automakers in the market have kept plugin hybrid vehicles as their option B, unlike Tesla who’s confident and is primarily dependent on electric vehicles.
Implications of Tesla Dominating the EV Market:
I mean why do you even care? Tomorrow if Tesla manages to acquire every bit of the electric vehicle market how will it harm you? Let’s discuss that in this section of the article:
Lack of Diversity and Taste:
Imagine how monotonous our streets will become if we keep seeing the same kind of car on every turn. Diversity is extremely important it gives us a variety of options and provides us with multiple variants.
2. Longer Waiting period:
If Tesla is the only company fulfilling all the EV demands of the country it may bottleneck the supply and they might not catch up with the market demand.
3. Price Control:
Establishing an electric vehicle empire requires building the whole EV ecosystem. Now if Tesla builds EV charging stations that don’t support any EV other than Tesla’s the company will finally have control over everything. In such a position, tesla can manipulate the pricing because now you are bound to be in Tesla’s ecosystem and it’s not feasible for the customers to switch from Tesla’s EV.
4. Customer Service:
This might be a solvable issue but if the responsibility for accessing all the EV owners is on one particular company, it may cause issues in the system and the EV owner might not get the right services.
5. R&D (Research and Development):
Lack of competition makes the market cool down and company owners reduce focus on bringing the next breakthrough that can increase their market cap further. So for electric vehicles to grow as an industry it’s very important to have some competition.
