Tesla’s battle to dominate the electric vehicle market


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Tesla’s momentum is building: California-based electric vehicle (EV) manufacturer Palo Alto produced 509,737 cars and delivered 499,550 vehicles in 2020, and the company’s shares rose to unprecedented levels. But is the market value hype really sustainable financially, and how does the brand compete with its German counterparts? Thomas Michael Hogg, a business consultant who has collaborated with market leaders (such as Daimler, Adidas, PepsiCo, and Johnson Controls) to map the company’s strategies, spoke with EEWeb about various aspects of German companies’ aspects of the electricity market and their competition with Tesla. “My job is to engage with business owners and CEOs in strategic planning and market studies,” said Hugh, author of “Profitable Growth Strategy: 7 Proven Best Practices from German Companies”. “So we developed a methodology, and the advice in my new book is keen to present results in the electric vehicle market.” The electric vehicle market is currently growing. All major automakers have a big year. “When it comes to the global market leader, Tesla produced and delivered around 500,000 cars last year,” said Hugh. “What we’ve seen is that other car brands have performed well as well. For example, Audi has had an excellent year, especially in the last quarter, mainly due to the Audi e-tron. So there are a lot of German companies in various sectors that are withstanding the crisis. Better than its international counterparts. ” The Audi e-tron is the world’s best-selling electric vehicle from premium manufacturers in Germany. In Norway, which is a leader in electric mobility, it is even the best-selling model. “Norway is a major country for electric vehicles, with more electric vehicle sales recorded in 2020,” said Hogg. “An interesting fact is that Audi surpassed Tesla in Norway in terms of the number of cars sold.” Tesla and the European Electricity Market: The electric vehicle market has some significant competition. When you refer to Tesla, you are addressing a niche market. Tesla’s deliveries in 2020 highlighted its strong production capacity, with a good quality jump compared to 2019. Hogg noted that in addition to the brand itself, superfast charging stations, economies of scale for batteries, and software expertise are some of the reasons for this. Tesla’s competitive advantage. “A good step is to build a huge factory in the heart of the European car industry: Germany,” he said. Tesla says the Gigafactory in Berlin / Brandenburg will be the world’s most advanced high-volume electric vehicle manufacturing facility as it develops new batteries. Additionally, the brand says its German manufacturing site will be an ideal working environment with modern, sustainable features. The production of batteries and specialized units and the full production of the Tesla 3 for the European market and the Model Y, a new compact SUV, are all on the agenda. It seems that what made the difference in choosing the German capital was the “human factor” that makes Berlin an attractive city for a company. Multinational investing in innovation. Tesla is an international company looking for highly skilled employees from all over the world who are ready to relocate. However, the interesting thing that Hogg pointed out is that Tesla is lagging behind in its HR recruitment program due to various legislation among the United States. Germany and the problems with the union. “What we heard is that Tesla is having some problems hiring engineers mostly to work for them, even though they have a really great brand.” The main issues are the hiring process, the potential work environment, and the risk of “hiring and firing.” “Tesla is strong when it comes to branding and marketing, and Elon Musk is very important to Tesla’s sales performance,” Hough added. “When it comes to endorsement, Elon Musk supports the brand. For a business, obviously, as a CEO and owner but also as a role model for future innovation. The German model relies more on tradition, performance and quality. ”Tesla Model 3 Germany and the auto market Tesla faces some major challenges in Germany. There are many reasons why the company will face a challenge in 2021 – in Germany as well as in the rest of Europe. The market is not the same in Switzerland, where Tesla has achieved tremendous success, as it is in Germany. ”“ Conditions and requirements of employees, customer loyalty and local competition are just some of the obstacles that the American brand has to overcome. ”BMW and Audi are gradually becoming a global brand. Because of their focus on quality.Hogg said Audi ended 2020 with the most successful quarter in its car delivery history: between October and December, the company delivered 505,583 cars to its customers – more than half a million in one quarter for the first time ever. This is thanks to strong performance on At the international level, thanks to the success of the Audi e-tron (including the Audi e-tron Sportback), which saw a significant increase in demand last year, up 80%. Hogg noted that Audi is also strong in China, just like the first German brands. Another: “Tesla is really a quality car, but when we talk about Audi, Daimler, Porsche and BMW, we have been talking about performance and technology for decades, as the Germans have shown effective progress and market penetration in many countries around the world.” Hogg said that in 2020, the list of best-selling cars in Norway was led by Volkswagen’s Audi, with its e-tron series electric models, which registered 9,227 new registrations. The VW ID.3, which launched on the market only in September, was roughly on par with the Tesla Model 3 with 7,754 units, which still sold more than double the sales of the market leader in 2019. “Overall, The Tesla brand, which relied almost exclusively on this one model, has lagged behind Volkswagen, Toyota, Audi, BMW and Volvo Audi e-tron other German car models have performed well when it comes to market share in Germany. German consumers are also in the electricity market.Studies in the past have shown that Germans, in general, prefer to buy locally, and thus support the home economy. “The origin of products is a decisive factor for consumers.” German car buyers attach importance to the fact that their cars come from or are “Producing them at least in Germany. Preferring car production in Germany, especially among luxury car buyers, was a strategic decision by Tesla.” Strong pressure on EU carbon dioxide limits and associated sanctions is driving the electric vehicle market. There has been a significant increase in 2020, and it is set to get stronger in the coming years. Hogg concluded by saying that despite Tesla’s success in some markets and the stock market, the importance of the domestic German market, legal conditions, competitors’ responses and employee needs should not be underestimated. Consequently, the green Elon Musk is facing competition from Chinese electric cars and the German auto industry, which is accelerating the transition to electricity. .


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