Striving to keep Tesla on top, Elon Musk Drives Hard For Maximum Market Share

By Douglas McIntyre  •  December 16, 2024
Makara Heng/Pexels.com

In the world’s largest EV market, China, Elon Musk has robust local competition, being that country’s No. 4 EV brand. In the U.S., he has no rival that has any comparatively meaningful sales, with about 50% of the U.S. market under his umbrella.

READ MORE ABOUT ELON MUSK’S TACTICS
As Tesla’s sales teeter, fingers point at the torrent of often-torrid tweets by out-there Elon
Four reasons Electric vehicle sales will stall under Trump 2.0 — and one big wild card

And now he is planning to firm up, or improve, his positions in both markets, by offering five-year loans that carry 0% financing. Buyers also get three months of free use of the company’s Superchargers and free use of its autonomous driving software for the same period.

China syndrome
While these decisions carry financial burdens, they are a smart play. Tesla has a substantial operating margin; its U.S. competition does not (Ford has lost about $100,000 for each EV it sold this year). His Chinese competitors have better financial results than U.S. EV makers, but their revenue growth will be undermined because tariffs block them from the U.S. and, to a lesser extent, Europe.

Tesla has played the long game for almost a decade. It has not only built the No.1 EV brand in the U.S., but, for a foreign-owned company, he is standing strong in China, with a powerful brand position, as well as factories there.

A move, no doubt, that other manufacturers will be watching closely. 

  1. Finding a fiduciary financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 financial advisors that serve your area in 5 minutes.
  2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Get on the path toward achieving your financial goals!
More from ClimateCrisis 247

Similar Posts