The Tesla company is facing new challenges since there are new rivals to beat in such a competitive automotive industry. It’s true models like Model Y and Model 3 keep being very used in the United States, but international brands are fighting for their own place in the American market. For example, companies like BYD are making a huge impact in the automotive industry, and SAIC is joining traditional brands from the U.K. and Germany.
A great example of this, and the one we will tackle in this article, is the collaboration between SAIC (China) and MG (U.K.) to launch an affordable and powerful electric model. That’s not everything, Audi (Germany) has joined the Chinese brand to present the new AUDI E5 Sportback.
Having this in mind, Elon Musk’s company (Tesla) is forced to think about its strategy to maintain its global leadership in electric vehicles. So, let’s find out more about this situation!
Tesla is the leader in the U.S.
The American company is well known for its electric vehicles (EVs) and it is still at the top of this market, being Model Y and Model 3 the most sold in the country. The first trimester of the year was very good for Tesla since they sold over 128,000 EVs just in the American market! Tesla surpassed other popular brands like Toyota, Hyundai, Ford and Volkswagen.
However, Elon Musk should be careful because outside the U.S. the industry is changing very fast and Chinese brands have become so powerful in the global market.
BYD
This is one of the most remarkable companies that has won Tesla when it comes to global sales of electric vehicles since 2022. In 2023, BYD (China) was in control of 22% of the EVs global market whereas Tesla only reached 10.3%. This means the international sector is totally changing the leadership, and China is the winner. Who would have thought this could have, right?
SAIC and MG
Tesla has another new competitor, SAIC Motor. This is a Chinese company that bought MG (U.K.) in 2007 and they recently launched the MG IM6 in Thailand. This model has an AWD version (four-wheel drive) that offers a maximum output of 579 kW/800 Nm, which translates into 787 horsepower (HP). So, Tesla’s most powerful models already have a direct rival.
Audi and SAIC
Apart from the previous collaboration, SAIC is joining forces with the German Audi. In April, they presented the new AUDI E5 Sportback, an electric model exclusively designed for the Chinese market. This is the first vehicle in the Audi line that has been specifically manufactured for Chinese consumers.
Let’s see some numbers about the E5 Sportback: 797 HP, reaches 100 km/h in 3.4 seconds, and 800 V ultra-fast charging system – in 10 minutes the vehicle has 370 km of autonomy.
Tesla and the international competition
As you can see, Chinese companies are investing a lot in the electric vehicles industry along with their international partners, because they are investing in technology power and also offering more affordable prices. So, Tesla should think about its role having in mind the huge impact other international brands are making in this industry.
Nowadays the global market of EVs is experiencing a wave of new companies willing to be the new Tesla. So, what we can take from this situation is that, no matter how popular and successful a company is, their products could be at risk because one day others will create improved ones with better technology. Do you think the big Tesla company will keep lowering positions in the EVs ranking? We’ll see how this situation goes.
