Tesla’s Q2 2021 production was 14% higher than Q1. Tesla became a $1tn-value company earlier this year, and Elon Musk is already the richest man in the world. Yet, electric cars as a percentage of new vehicles sold was only 2.7% in 2019, a dramatic increase from the 0.1% vehicle sales in 10 years ago.
However, less than 3% global vehicle sales means that the industry faces a difficult task if it wants to replace the internal combustion engines.
Goldman Sachs predicts that EVs will account for 18% and 29% of global vehicle sales by 2030, respectively. Deloitte recently reported that China will have a market share of 48% by 2030. The United States has 27%, while Europe will have 42%.
China is currently leading in terms of EV penetration, as a percentage new cars sold. It stands at 1.5%. This will increase by 3100% to 48% according to Deloitte over the next 10 year. Similar growth is expected in Europe.
The U.S. is expected to lag at 27% in the future due to drivers who benefit from low gasoline prices and negate the low cost per mile running of electric vehicles.
The U.S. could see growth of 3700% despite having a lower market share of 0.7% at the beginning.
The Europeans are embracing EVs. In 2019, 56% of all new vehicles sold in Norway were electric, while 2 of the top 10 most-sold cars in Holland were EVs.
Due to government incentives and consumers being more conscious of climate change, the UK saw a triple-digit increase in EV sales. The government proposed that all polluting vehicles be banned by 2035.
China is the dominant market for EVs, accounting for roughly half of all vehicle sales.
Tesla is responsible for almost 80% of the U.S. electric vehicle market.
Although the stock is still far from its year-high of $900, analysts at Oppenheim ($1036) and Wedbush ($950) believe that a recovery is possible.
Long term bull Cathie Wood has a target price for bull cases of $3000.
Reassessment level – $540Over the last 9 months, this price has been a support.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned