In the discussion on Tesla’s prospects for the future (TSLA), I often have the question, “Wake me up when Tesla has a credible opponent, and I will meditate upon it, okay?”It seems to be a reasonable question at first glimpse. I believe it is wise to ask if the potential competitors- major car manufacturers-are going to sell off Tesla when you assume electric cars are the future and Tesla the leader
This essential and reasonable question answered in two parts. In the first case, the stock market should be able to reduce the incidents in the generational process period for which the vote counts. Saying “the die has set already?”, what do I imply?” The creation, testing, and manufacturing of a whole-new vehicle require 4-5 years-if you know what a car manufacturer has decided over the last five years to some extent. You know what is coming with some detailed precision.
Therefore, the industry should have the intellect to discount the effect of these new cars which are present in the market, possibly one year from now (subtract 3-4 years from 4-5 years). Decisions ensued three or four years ago to build a range of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs). Unfortunately, the market appears ignorant of the powerful ketchup-bottle impact of a very significant number of BEVs and PHEVs that will be on the market in the next 6-18 months–a year, plus or minus six months–depending on the volatility of Tesla ‘ s stock.
The question was like this: What might occur to sales from Tesla when a car manufacturer decides to start a direct Tesla competitor?
As it points out, this situation has a predicted view: Car manufacturers releasing premium BEV rivals described accurately as $70,000 to $100,000 more in advance of discounts. In this scenario, the Audi eTron and Jaguar i-pace would be competing Tesla’s Models X and S.
Of reality, in the short term, in January 2020, there are already several European rivals for the Tesla Model 3-kind. They are good electronic cars from Kia, Hyundai, Chevrolet / Opel, Nissan, Volkswagen, BMW, Seat, Skoda, DS, Citroen, Peugeot, MINI, and so on. One might argue that while they take market proportions from Model 3 Tesla, they are not all perfect direct competitors because of their very presence.
Instead, we are not to see the first relatively direct rivals for Tesla Model 3 until late 2020. I argue that Volvo, as well as its sister company Polestar, are the first ones with Volvo XC40 and Polestar 2 nameplate, all operated by China’s Geely actively or passively. In around the middle of 2020, they will enter Europe’s market.