Tesla Inc. (TSLA) is an American company that designs, develops, manufactures, and distributes electric vehicles and powertrains. Elon Musk is the company’s chief executive. The company is based in Palo Alto, California, founded in 2003.
Tesla is an American corporation that started by manufacturing electric cars and creating clean energy generation and storage systems. However, with the popularity of its EV in the market, tons of Tesla Competitors have been trying to capitalize on the opportunity.
Additionally, the brand is credited with developing the first vehicle equipped with electric technology. Tesla provides energy solutions to aid in developing the energy ecosystem, such as Solar Roof, Powerpack, and Powerwall.
Tesla (NASDAQ: TSLA) is the most known electric carmaker in the market, thanks to CEO Elon Musk’s quirky attitude and never-before-seen items like the Cybertruck.
|Year founded||July 1, 2003|
|Founder||Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, Ian Wright|
|Headquarter||Austin, Texas, United States|
|Areas served||Nearly Worldwide|
Meanwhile, inside and outside the United States, other organizations are closing in on the eccentric entrepreneur to compete with or surpass Tesla. Forbes Business Insights predicts the worldwide electric vehicle industry will grow at a 24.3 percent annual rate from $287.4 billion in 2021 to $1.3 trillion in 2028.
Although Tesla Inc. (NASDAQ: TSLA) holds the undisputed leader in the electric vehicle sector, it has operated in a vacuum until now. According to Bank of America analyst John Murphy, Tesla’s market share for electric vehicles will decline from 70 to 20% within the next three years.
With this size of operations, the following Tesla competitors that are posing a threat to Tesla’s ability to function as a leader in the industry:
Top Tesla Competitors & Alternatives
Audi’s hybrid and electric vehicles are equipped with cutting-edge technology that allows drivers to travel in luxury and simplicity. Audi is a German car company that makes luxury vehicles. Volkswagen owns it. Audi’s headquarters are in Ingolstadt, Bavaria, Germany. Audi has been making cars since 1909.
The company’s first car was the Type A 10/22 hp (15 kW) Sport-Phaeton, produced from 1910 to 1913. Audi is planning to invest €24 billion in new technologies by 2025. This includes electric cars and self-driving cars. Audi plans to compete with Tesla in the luxury electric car market.
Audi’s e-Tron model, in particular, can go up to 150 miles on a single charge when completely charged.
Audi’s e-Tron, equipped with the most up-to-date technologies, is one of Tesla’s most formidable opponents.
Nissan is a major Tesla competitor in the electric car segment. Nissan is a global automobile company best known for being the world’s largest maker of electric vehicles. Nissan is also a top Tesla competitor.
Nissan is a Japanese multinational automobile manufacturer headquartered in Yokohama, Japan. The company sells its cars under the Nissan, Infiniti, and Datsun brands with in-house performance tuning products labeled Nismo. The company’s origins date back to 1933 when Nissan Motor Company Ltd was founded.
Nissan has been a key player in the development of the electric car, with models such as the Leaf being hugely popular. The company has also been working on autonomous driving technology and aims to have cars on the market by 2020. With strong competition from Tesla, Nissan is one to watch in the coming years.
The Nissan Group has many brands in more than 191 countries worldwide, characterized by innovative products and services. Nissan is undoubtedly the world’s top manufacturer of electric vehicles, having sold more than 320,000 EVs worldwide as of April 2018.
Nissan, a Japanese automobile manufacturer, plans to introduce a fully autonomous vehicle. According to the company’s Intelligent Mobility, it is anticipated that humans will be a part of the seamless driving experience, in which Nissan customers will feel more freedom, and their cars will become their partners.
German automobile manufacturer Bayerische Motoren Werke (BMW) is rated twelfth in vehicle production, headquartered in Munich, Germany. BMW is a car company that many people know for its luxury vehicles. However, BMW is also a competitor to Tesla, as they both produce electric cars.
BMW has been making cars since 1916, and they have come a long way. Today, they are known for their innovation and luxury. While Tesla may be the more popular choice for electric cars, BMW is a force to be reckoned with.
BMW is well-known for its brand performance, which makes it one of Tesla’s most formidable opponents in the automotive industry. BMW I is a sub-brand of BMW established in 2011 and is tasked with designing and manufacturing hybrid and electric automobiles.
In 2016, BMW i-series sales hit a milestone of 50000 units. The BMW i3 Model has surpassed the Tesla Model S as the world’s third most popular electric vehicle. iNext is a self-driving automobile, and the business expects to begin manufacturing in 2021 as planned.
Honda is a Japanese multinational conglomerate corporation primarily known as a manufacturer of automobiles, motorcycles, and power equipment. Honda has been the world’s largest motorcycle manufacturer since 1959 and the world’s largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines yearly.
Honda became the second-largest Japanese automobile manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor Group, Ford, Nissan, and Fiat Chrysler Automobiles in 2015. In 2017, Honda ranked as the seventh largest automaker by production worldwide.
Honda is another competitor of Tesla, and it is well-known for making automobiles, aircraft, motorbikes, and power equipment. Honda is also a leader in the field of electric vehicles.
Honda Motors offers its consumers proactive, proficient, and professional services. The company manufactures its automobiles with the most up-to-date technology, increasing sales.
5. Ford Motors Company
Ford Motor Company is an American multinational automaker with its main headquarters in Dearborn, Michigan, a suburb of Detroit. Ford Motor Company was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand.
Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling Motors of China. It has joint ventures in China, Taiwan, Thailand, Turkey, and Russia.
The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but majority voting power. The service quality of Ford Motors is incredibly good in terms of manufacture, design, sales, and service since the company’s primary objective is to increase customer pleasure.
The company manufactures its vehicles utilizing various modern technology and prioritizes CO2 emissions as part of its sustainability goal. Ford Motor is positioned as a formidable challenger to Tesla. EV startups are naturally popular with investors, but established automakers invest heavily in electrifying their model lines.
Bloomberg reports that Ford intends to invest $10 billion to $20 billion in electric vehicles over the next five to ten years, on top of the $30 billion it has already committed to spending by 2025.
According to Murphy, Ford’s Ford+ strategy of investing in its transformation to an auto technology company provides a framework that will enable the company to grow larger and more profitable.
6. General Motors
General Motors Company, commonly referred to as GM, is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts. With global headquarters in Detroit’s Renaissance Center, GM employs over 180,000 people on six continents.
GM’s core automotive brands include Chevrolet, Buick, GMC, and Cadillac. The company also owns or has interests in several other automotive brands, including Holden, Wuling, Baojun, Jiefang, and FAW Group.
In addition to these core automotive brands, GM has a majority shareholding in Cruise Automation – a self-driving car subsidiary, and stakes in electric car manufacturer Nikola Corporation and autonomous vehicle technology firm lidar supplier Voyage Auto.
General Motors provides customers with various services, including car design, manufacture, and performance. General Motors is Tesla’s top competitor in customer service and global reach due to its commitment to customer service.
The technology of self-driving cars has moved from science fiction to reality. General Motors acquired Cruise Automation, a San Francisco-based startup focused on self-driving cars, in 2016. The primary purpose of this acquisition is to accelerate the development of self-driving cars soon.
General Motors has made no secret of its intention to surpass Tesla as the leading electric vehicle seller in the United States by the mid-2020s. GM has declared that it will invest $35 billion in electric vehicle infrastructure through 2025.
General Motors, a company that has recently reported a net income of $1.74 billion, trades at only 6.6 times its expected earnings in the coming year when most electric vehicle companies fail and sell at inflated valuations. Murphy claims that GM’s legacy business generates enough cash flow to finance electric and autonomous vehicle investments.
Nio is a Chinese electric vehicle company headquartered in Shanghai. The company was founded in 2014 by William Li and has become one of the most prominent Tesla competitors. Nio produces a range of electric vehicles, including the ES8 SUV and the EP9 supercar.
The company has also developed a battery-swapping system, allowing drivers to swap their car’s battery in just three minutes. Nio has plans to launch its autonomous driving technology and has already tested its self-driving cars on public roads in China.
The terms “China” and “Tesla” have become popular because both have been associated with potentially world-changing innovation and growth in recent years. It is, therefore, worth your time to investigate further when a Shanghai-based automotive startup emerges amid rumors it is China’s Tesla.
NIO (NYSE: NIO) has focused on producing high-end electric vehicles for the worldwide market since its founding in 2014. Despite receiving positive reviews for its products, the corporation has earned a reputation for being unpredictable and high-risk.
Analysts worry that its valuation is based on a vague sense of “potential” rather than its current financial performance – although a similar complaint could be made about Tesla itself. In 2021, NIO delivered 91,429 electric vehicles, representing a 44.3 percent increase over the previous year.
The company has become a viable alternative to Tesla for investors seeking an alternative to Tesla due to its rapidly increasing delivery numbers and excellent financial metrics. Another question is whether this increase can be sustained and whether investor demand can continue at these astronomical levels.
Even though NIO is unquestionably a high-risk investment, its dedication to pushing the boundaries of technology and its unusually low pricing makes it difficult to dismiss.
Volkswagen, an electric car company, is a competitor to Tesla. The company has been around for over 80 years and has a variety of cars, SUVs, and vans. Volkswagen’s vehicles have a range of prices and features that make them a good choice for consumers.
The company focuses on safety and has many features that help keep drivers and passengers safe. Tesla’s European Gigafactory, which opened on the outskirts of Berlin in 2013, has put all eyes on the German automotive industry, which has so far failed to meet the level of excitement generated by its American counterpart.
The Volkswagen Group is one of the industry titans that has been promising to fix this for some time (ETR: VOW3). Volkswagen has quietly made inroads into the automotive market through its ID series more than a decade after Tesla entered the picture.
Volkswagen expects to sell 50 percent of its electric vehicles in the United States by 2030, and the company is investing tens of billions of dollars to achieve this goal.
As part of the new European Union pollution standards, the company hopes to create 1.5 million electrified vehicles by 2025. Volkswagen has survived multiple cycles of boom and bust, dictatorships, wars, apartheid, and reunification of its host country despite being one of the world’s largest corporations.
Consequently, it is particularly efficient for achieving long-term objectives such as these.
9. XPeng Inc
XPeng Motors is a Chinese electric car company that was founded in 2014. The company is headquartered in Guangzhou, Guangdong Province, China. XPeng produces and sells electric cars under the brand name Xpeng. The company has a range of sedans, SUVs, and delivery vans.
Lithium-ion batteries power XPeng cars with a range of over 250 miles (400 km) on a single charge. The company offers home charging stations and battery-swapping services.
XPeng has raised over US$2 billion from investors, including Alibaba Group, Sequoia Capital China, and IDG Capital. In 2019, the company planned to expand its sales to Europe and the United States.
XPeng is an electric vehicle startup based in China that primarily targets high-end and mid-range segments. The G3 SUV and P7 sports sedan successfully debuted in 2018 and 2020, respectively.
XPeng recorded 12,922 car deliveries in January, an increase of 115 percent from the previous year’s same month. Lee is optimistic about the future of XPeng’s car model pipeline, which includes the G9 SUV.
Lee claims that when the G9 is introduced in the third quarter of 2022, it will increase XPeng’s margins, and the company’s management is aiming for break-even profitability by 2024.
10. Li Auto Inc
Li Auto Inc is a Chinese electric vehicle manufacturer headquartered in Beijing. The company was founded in December 2015 by Li Xiang, a well-known Chinese entrepreneur in the electric vehicle space. Li Auto Inc is a publicly traded Chinese conglomerate Geely Group subsidiary.
Li Auto Inc’s first mass-produced electric vehicle is the Li ONE, an all-electric SUV. The Li ONE was launched in December 2018 and is currently available for sale in China. The company planned to launch the Li ONE in Europe and the United States in 2020.
Li Auto Inc is often referred to as a “Tesla competitor” due to its focus on producing all-electric vehicles. However, the company has stated that it is not directly competing with Tesla but aims to provide Chinese consumers with an alternative to traditional gasoline-powered vehicles.
In May 2019, Li Auto Inc raised $1.5 billion in its initial public offering on the Nasdaq, making it the first Chinese electric vehicle company to list on a major U.S. stock exchange. Li Auto Inc’s market capitalization currently stands at $8.5 billion.
Li Auto, another top Chinese EV manufacturer, was the first to market with an extended-range EV in China. Li Auto also has a presence in the United States.
The Li-One, the company’s first vehicle, is a huge SUV that seats seven people. In January, the number of vehicles delivered by Li increased by 128.1 percent over the same period last year.
Lee is optimistic about the X01, Li’s full-sized SUV, which will debut in 2022. Additionally, Li intends to launch five additional models by 2023, with a 20-30 percent gross profit margin on the Li-One in the long run.