Data presented by Buy Shares indicates that Tesla unsurprisingly accounted for 81.66% of all-electric vehicles sold within the US as of the primary half of 2020. During the amount, a complete of 87,398 electric vehicles were sold within the US with Tesla accounting for 71,375. The company’s popular Tesla Model 3 was the highest-selling with 38,314 units.
The US remains one among the leading markets for electric vehicles across the world. Different players are making attempts to determine a robust market presence but Tesla appears to be winning the race.
Ten popular models from different manufacturers were sold with Tesla accounting for four models. The models also are from traditional vehicle manufacturers. Among the analyzed companies, Germany based carmaker BMW had the smallest amount unit sales with 251 vehicles of the BMW i3 model. The Buy Shares research also overviewed the foremost valuable carmakers by market capitalisation as of August 19, 2020. From the info, Tesla dwarf’s other manufacturers with a market cap of $350.08 billion.
Japanese carmaker Toyota market is nearly half Tesla’s size at $189.29 to dwell the second spot. America’s General Motors had the smallest amount market cap at $41.69 billion among the surveyed companies.
Why is Tesla popular?
Tesla’s large market cap spells luck for the corporate. Generally, market capitalisation corresponds to a company’s stage in its business development. With a large-cap, investments within the Tesla stock are considered more conservative and potentially posing less risk in exchange for fewer aggressive growth potential. Additionally, Tesla investors are guaranteed the potential for steady dividend payments.
Tesla’s car models are popular as they need revolutionalized the electrical vehicle industry. Before the Model S, all-electric vehicles had several shortcomings like poor design, heavy and longer charging hours. Unlike competitors, Tesla models are among the safest electric cars on the road currently. The Models also are fast, an element that has proved crucial for the success of Tesla cars. Meanwhile, the company’s Model 3 has become the best-selling vehicle in other regions like China, which is additionally the world’s largest auto market.
Notably, the Tesla car models have contributed to its high market capitalisation compared to competitors. Tesla’s business model in recent years has been impressive to investors. the corporate has transformed from regularly missing delivery targets and production milestones to overdelivering on different fronts. The surge within the market capitalisation comes at a time when Tesla reiterated pre-COVID guidance for half-million deliveries in 2020, despite factory shutdowns in both the U.S. and China.
In the event the car maker achieves the milestone, its deliveries are going to be up hence boosting confidence among investors. Like other industries, the US electric market was hit hard by the coronavirus pandemic and economic shutdown. Some companies like Tesla appear to be weathering the storm and posting positive results.
The US electric vehicle market outlook
At an equivalent time, Tesla’s revolutionary electric vehicle models have seen competitors up their game by arising with new products meant to rival Tesla within the US. From our research, the Chevy Bolt is that the only model that appears to cause interruption for Tesla’s market dominance. The model outsold the favoured Tesla Model S. This is often an indicator that Tesla’s market dominance won’t last. to take care of its position, Tesla will get to remain innovative within the future.
Several factors are expected to drive growth within the US electric vehicle industry. For instance, with stringent restrictions on automotive emissions, the market size is projected to expand. As a part of long-term climate commitments, car manufacturers are accelerating their investments in electrification and meeting short-term policy requirements. This commitment has seen traditional automakers unveil their plans to determine electric vehicles. Additionally, the wide product range has attracted many consumers and led to a growing electric vehicle market
However, factors like high manufacturing cost and low fuel economy and serviceability might hamper the expansion of the electric vehicle market. To tackle these projected challenges, manufacturers are counting on factors like technological advancements and proactive government initiatives to supplement the expansion of the electric vehicle market within the US