Tesla could capture 25% of total automotive market share by 2026

There are many top investors out there who are largely for or against Tesla. ARK Invest CEO Cathie Wood has been very optimistic about the electric carmaker for quite some time now, and many of her estimates have already come true, despite skeptics insisting that her valuations and outlook future are crazy.

Recently, Wood said she expects Tesla’s market share to be up to 25% of the total auto market share by 2026. She went on to say that rivals are maybe already too late in the game, and they’re still not doing enough. to catch. However, Wood made it clear that Tesla needs to be successful with autonomy for its market share to reach such heights. According to Teslarati, Shared wood in a Barron maintenance:

“If Tesla is the first to be successful in autonomy in the United States, we start to believe that not only will Tesla take this bigger share of the electric vehicle market, we think it could take 20 to 25% of the market share of electric vehicles. Marlet. the entire automotive market in five years.

Tesla has already made it clear that its competitors are not electric vehicle startups or electric vehicles produced by legacy OEMs. Rather, the company’s objective is to compete with the entire automotive industry. In other words, Tesla is fighting against gasoline cars, not against other electric vehicle manufacturers.

Wood agrees, stating that Tesla is unlikely to be overwhelmed by EV markers, such as Lucid and Rivian. Despite their hugely successful vehicle launches and market valuations, these companies are years behind Tesla, and they’re not heading into mass production very quickly. Wood made it clear that that doesn’t mean companies like Rivian and Lucid won’t be successful, but they probably don’t pose a threat to Tesla.

As for the legacy automakers, Wood insists they’re going to have a hard time being late in the game, as well as moving too slowly. She said:

“It’s going to be terribly difficult for these companies to manage over the next five to ten years. And you’d bet they won’t be alive in their current state. They can be in combination with someone else, or they can go bankrupt.

With gasoline-powered vehicles still paramount to traditional automakers, it would take a huge leap forward for a successful transition to electric vehicles. Wood says they just don’t have the DNA to remove it.


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