In the worldwide EV competition, Tesla is outpacing German automakers

Published On: 24 July 2023
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Germany's automakers are falling further behind Tesla in the global EV race.

Tesla’s EV sales increased 30 percentage points more than VW’s in the three months that ended in June, widening its lead. Germany’s automakers announced bold plans to shift to electric cars in the last several years and challenge Tesla Inc.’s dominance. Instead, they’re only falling further behind

Tesla delivered more electric vehicles in the first half of 2023 than Volkswagen, BMW, Mercedes-Benz, and Porsche combined. The German automakers are struggling with software delays and waning sales in China, while Tesla is expanding its production capacity and preparing to build a new plant in Mexico.

"Tesla is still miles ahead of the German carmakers in all the major markets," said Matthias Schmidt, an auto analyst based near Hamburg. "They're under pressure to boost volumes to reach the kind of economies of scale needed to make EVs profitable."

The German automakers have announced bold plans to shift to electric cars, but they are not yet delivering on those promises. Tesla, on the other hand, is well on its way to becoming the world's leading electric car maker.

Here are some of the reasons why Tesla is outperforming the German automakers

Tesla has a clear vision for the future of electric cars.
Tesla has a vertically integrated production process, which gives it more control over the quality of its cars.
Tesla has a strong brand and a loyal customer base.

The German automakers need to make some major changes if they want to catch up to Tesla

1. They need to focus on software development.
2. They need to invest in new production facilities.
3. They need to create a more compelling brand and customer experience.

The electric car race is just getting started, and Tesla is the clear leader. German automakers need to act fast if they want to avoid being left behind.