By 2025, Tesla will lose its dominance in the electric vehicle market

According to a recent US study, Tesla will lose its leading position in the market for electric vehicles because it is not quickly enough growing its portfolio to keep up with rival automakers and new startups who are stepping up their offerings.

According to the most recent iteration of the yearly “War of the Cars” analysis by Bank of America Merrill Lynch, Tesla’s market share for electric vehicles might decline from 70 percent now to just 11 percent by 2025 due to increased competition from General Motors and Ford.

By the middle of the decade, when they each have around 15% of the market share for electric vehicles, the two Detroit-based auto titans will exceed Tesla, claims the study’s author John Murphy, senior auto analyst at Bank of America Merrill Lynch. According to the same report, new vehicles like the F-150 Lightning and electric Silverado EV pickups are predicted to offer exceptional growth, which would represent an increase in market share of roughly 10% from the two manufacturers’ existing positions.

The era of Tesla’s market domination, particularly in the US, is past. Murphy predicts a significant change in the other direction over the following four years.

According to the aforementioned expert, Elon Musk, the CEO of Tesla, has had a vacuum with little competition for the past ten years, but “that vacuum is now being largely filled with very good products over the next four years.”

The release of the Cybertruck has been postponed by Tesla several times, and the company has also postponed plans for the next-generation Roadster. The electric truck and the sports vehicle will both begin production at some point in the upcoming year, according to the most recent corporate reports.

Elon didn’t move quickly enough. There was a great deal of conceit that other automakers would never catch up and be able to accomplish what he was, but Murphy notes that they were.

Later this decade, Ford and General Motors executives said they intend to unseat Tesla as the leading manufacturer of electric vehicles. While GM claims it will have a capacity of more than two million electric vehicles in North America and China combined by 2025, Ford predicts that it will make two million electric vehicles globally by 2026.

Other forecasts from the Car Wars study this year include the fact that by 2026, roughly 60% of new license plates will be for electric vehicles or hybrids, and that EV sales will increase by at least 10% in the U.S. market.