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.
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.