Tesla Sales Struggle While Competition Rises
Tesla was once the sole pioneer of luxury electric vehicles, but their reign is quickly coming to an end. Several major car manufacturers have announced their plans to develop similar vehicles that boast luxury settings.
Among the ranks, there’s Ford Motors, which has begun a transition to offer uncompromising quality in more sustainable new cars. Aside from a plan to invest $4.5 billion into creating the best electric cars on the market by 2020, they’ve also developed a process that uses up to 50 percent reclaimed carbon emissions in manufacturing.
General Motors has also declared fierce competition with their Chevrolet Bolt, which has a battery power range of 200 miles between charges. It’s a high-class vehicle with zero emissions.
Honda, Toyota, Spartan Motors, Kandi Technologies, and a few other major vehicle manufacturers have also established themselves as firm competitors in the race for more sustainable electric vehicles. Tesla no longer controls the market, and their revenue is suffering as a result.
In the middle of 2015, their share price had dropped nearly 9 percent, the lowest level yet. The company is looking to enact a growth plan that will increase their sales and beat out their competitors..but for now, they’re watching their backs.
According to forecasts, Tesla will have to make some pretty big changes to its current direction in order to see major growth in the future. Here are some of the changes that will have to be made:
Capitalizing on Electric Vehicles (EVs)
Tesla’s most promising future lies with EVs. They were the first to market these vehicles on a large scale, and they have the ability to carry them even further. Through their efforts, there are now more than 3,000 superchargers all over the United States, which is a feat that no other EV player has managed. If Tesla were to capitalize on broadening the EV network, they could see incredible growth.
Other companies, such as Ford, aren’t nearly as focused on offering charging portals as they are on creating faster charging alternatives. The company plans to develop a new Ford Electric that will charge to 80 percent capacity in just 30 minutes, which is very similar to Tesla’s Model S. They will continue to develop this process to improve the charge in a shorter amount of time.
In the meantime, Tesla will continue to work on its charging networks, expanding the recognition of their name and continuing to produce vehicles on a mass scale.
Mass Marketing Tesla Gen III
Tesla isn’t far away from debuting its third major vehicle, which is currently known as Gen III. According to reports, this vehicle has the ability to reclaim the market share for the company and boost revenue. The newest vehicle, which was announced more than two years ago, is expected to debut near the end of 2016 or the beginning of 2017.
It’s one of the more affordable cars, which makes it attractive to a wider range of buyers, and the minimum range is expected to be 215 miles, with a high capacity engine and luxurious interior. This vehicle alone could reclaim all of the ground Tesla lost last year…that is, if they play their cards wisely.
Tesla’s Gen III will be a success as long as their competition doesn’t get in the way. Right now, the Chevrolet Bolt seems to be the most daunting competitor in the low cost EV market. BMW, Daimler, and Volvo are also hot on Gen III’s heels.
If Tesla can quickly put the finishing touches on the vehicle, release the vehicle before the competitors, and market the vehicle for its unique features, it could dominate the market in the EV sector.