Bumpy road ahead for Elon Musk as Tesla faces the crown of the world’s largest electric car maker

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(Photo by Dean Mouhtaropoulos/Getty Images)

(Photo by Dean Mouhtaropoulos/Getty Images)

  • Tesla will lose its title as the world’s largest EV manufacturer in 2024, Bloomberg Intelligence said.
  • This expects Volkswagen to become the world’s largest producer by increasing European and Chinese sales.
  • Tesla recorded 75% of global EV sales in the first three months of this year.
  • For more stories go www.BusinessInsider.co.za.

Tesla faces a crown loss as the world’s largest electric car maker for Volkswagen by 2024, according to new research.

Research by Bloomberg Intelligence expects the German giant to double production to more than 2 million battery -powered vehicles by 2024, following Tesla.

Rising battery costs and limited production capacity meant most other competitors, including Ford and General Motors, lack incentives to catch up as fast as Volkswagen, the report said. That’s why Tesla will remain the largest EV dealer in the U.S. for some time to come.

Volkswagen’s production and sales focus on Europe, and Bloomberg expects the company to be more advanced in China than America. U.S. sales were less than 10% of VW’s total last year, according to the annual report.

Tesla’s sales in China, which now makes two models, may suffer, Bloomberg said.

Tesla was an early participant of the EV revolution, and accounted for 75% of all electric cars sold globally in the first quarter of 2022, according to the Kelly Blue Book. Competitors are slowly taking advantage of the scale to eat up some of its market share.

Ford has led the charge with the Ford F-150 Lightning, which has received 200,000 orders, while GM continues to advance on the next-generation “Ultium” battery. Volkswagen is also considering sports car maker Porsche, which also has electric models.

But Tesla has also expanded production and taken advantage of the economies of scale it had in the beginning. It began delivering cars from the Berlin gigafactory in March, where it aims to produce 500,000 cars per year.

Tesla CEO Elon Musk has tried to eliminate the threat from the legacy automotive manufacturer, joking that he got “free advertising” from a competitor in a tweet there which highlights similar marketing strategies among manufacturers.

In an interview on Tesla Silicon Valley Owners YouTube channel released Tuesday, Musk said that rivals Rivian and Lucid would go bankrupt if they did not reduce costs.

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