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Tesla market share could be erode by cheaper rival EVs

Elon Musk’s Model 3 compact sedan starts at roughly $47,000, making it the company’s least expensive vehicle.

Tesla market share could be erode by cheaper rival EVs

Tesla might be losing its firm grasp on the electric vehicle market, as opponents attempt to work on its share of the overall industry with less expensive choices.

With electric cars quickly gaining popularity among masses, models priced below $50,000 are in big demand, an area where the world’s most valuable automaker “does not yet truly compete”, S&P Global Mobility said in a report on Tuesday.

Elon Musk’s Model 3 compact sedan starts at roughly $47,000, making it the company’s least expensive vehicle.

“Tesla’s position is changing as new, more affordable options arrive, offering equal or better technology and production build,” the research firm said, adding that the company’s ability to hold on to its market share will be challenged in the future.

Tesla’s competition comes from models such as General Motors Co’s Bolt and Bolt EUV, Hyundai Motor Co’s Ioniq5, Kia’s EV6, Volkswagen AG’s ID.4 and Nissan’s Leaf, the research firm said.

Musk has hinted at rolling out a lower-priced vehicle, although its production and delivery timeline is still unclear.

As per the inputs from Reuters, Tesla was working on a revamped version of Model 3 as it aims to cut production costs and improve features of the five-year old electric sedan. 

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First published on: 30-11-2022 at 08:00 IST