Eyeing Tesla’s success, major automakers are hurling themselves into the electric vehicle market as governments set ambitious zero-emissions targets and drivers around the world look to go electric. While Elon Musks’s pioneering company currently dwarfs rivals by stock value, it now faces a new level of competition from traditional manufacturers with deep pockets and many decades’ experience making cars.
“It’s an EV arms race,” said Wedbush Securities analyst Dan Ives. Tesla has “a bullseye on their back — the whole auto industry is gunning for them.”
Will Big Auto eat Tesla’s lunch?
Experts say probably not anytime soon — but the company that’s been an EV trailblazer with a cult-like following needs to capitalize on its strengths to stay ahead in the race.
Legacy players are just getting started in mass EV production, but have the resources to scale up quickly, according to analysts. Tesla will likely lose market share as other players start selling more EVs. And just about everyone is angling for a piece of the market, from Ford and GM to Toyota, Hyundai, Honda, Porsche, Jaguar and Mercedes. Yet amid an explosion of global demand, Tesla’s expansion, its momentum in production, and the strength of its brand mean major auto makers are entering the race going uphill and from far behind.