There’s been a long line of new electric vehicle (EV) companies breaking through over the past year. And as each emerges with new their own take on the future of retail EVs, we wonder if this is the one that will eventually take down the reigning segment leader, Tesla (TSLA).
We’re talking about companies like Nikola (NKLA), NIO (NIO), and most recently Lucid motors which will go public soon. All have burst onto the EV market with a ton of promise, for a variety of reasons, with a company like NIO already finding success overseas.
But there’s one big problem. None of these companies have the same cachet as Tesla, and its rogue, outspoken CEO, Elon Musk. Therefore, they likely don’t pose much of a threat.
Well, if cachet is what the people are looking for, Ford (F) might have just the answer.
A company as established as any in America, Ford recently introduced a new take on arguably the most popular car model in U.S. history. Ford’s Mustang is the picture of American muscle and it’s a car that continues to transcend generations of American families. And so far the American automaker’s brand new all-electric Mustang Mach-E crossover has received quite a warm reception.
But perhaps the even bigger news is that the new Mustang appears to be cutting into Tesla’s cushy market share, right out of the gate. According to a Morgan Stanley report, while Ford sold only 3,739 of the new SUVs in February, Tesla’s share of the US electric-car market fell to 69% in the same month, down from 81% in the prior year. What’s more, the Mustang accounted for nearly all of Tesla’s market-share losses, the bank said.
The early numbers even caught the attention of Elon Musk, who himself, is even bullish about Ford’s chances of succeeding in the growing auto segment:
“Tesla & Ford are the only American carmakers not to have gone bankrupt out of 1000’s of car startups Prototypes are easy, production is hard & being cash flow positive is excruciating.”
Elsewhere, Tesla investor and former board member Steve Westly indicated to CNBC with competition encroaching from all sides, it’s only a matter of time for Tesla:
“Tesla is not going to be king of the hill in electric forever.”
Perhaps with the latest take on classic American muscle, we’re finally seeing the beginning of the end of Tesla’s reign.