As EV sales volumes have increased, Tesla’s EV market share has—perhaps inevitably—shrunk from absolutely dominant to merely commanding,
notes, using production-cost advantages to fund price cuts has a long history in the auto industry. Toyota successfully weaponized its superior margins in the 1980s and 1990s.
Meanwhile, Chinese automakers have started selling their EVs in Europe, and domestic brands fear, with good reason, that they may steal a large part of the market for lower-priced cars, which European EV-makers have largely ignored.is just one of several industry execs sounding the alarm, and implying that governments need to ladle out more subsidies to help automakers meet the threat.
But there’s a pretty good argument to be made that Tesla is a more immediate challenge to European automakers. For a month or two in 2022, in Europe, and that was before the recent round of price cuts. If demand should drop, Tesla could dip into its magnificent margin to drop prices further. Volkswagen has much less leeway with its margin of $973. And the Chinese? According toAs the legacy automakers produce more EVs, they’ll improve their EV-building chops and increase their margins.
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