BMW's CEO says Tesla will struggle to maintain its rapid growth because of mounting competition among electric-car makers
BMW CEO Oliver Zipse and Tesla CEO Elon Musk. Sven Hoppe / Picture Alliance via Getty Images, Hannibal Hanschke-Pool / Getty Images
Tesla could struggle to maintain its rapid growth as other automakers launch their own electric vehicles, Oliver Zipse said Monday.
"The rest of the industry is making great strides," said the BMW CEO.
Tesla delivered nearly 500,000 vehicles in 2020. Other automakers have pledged to increase sales of electric cars.
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Tesla could struggle to maintain its rapid growth as its competitors ramp up sales of their own electric vehicles, the BMW CEO said on Monday.
Tesla delivered nearly 500,000 vehicles in 2020 and expects an "average annual growth of 50%" for the next few years.
"It will not be easy for Tesla to continue at this pace as the rest of the industry is making great strides," said BMW CEO Oliver Zipse at the DLD All Stars conference on Monday.
Bloomberg covered the news first.
Other automakers are increasingly stepping up their efforts to bring electric cars to market as the market continues to boom.
Zipse's company, BMW, began selling the Mini Electric, the most affordable electric car currently available in the US, in 2020, insider Tim Levin reported.
General Motors, the U.S. largest automaker, said it will cease sales of gas-powered vehicles by 2035 and invest $ 27 billion in electric and autonomous vehicles over the next five years.
Jaguar Land Rover announced that it would go fully electric by 2039. Volkswagen electric vehicle sales more than tripled in 2020, and even Apple is reportedly building its own electric car.
Despite increasing competition, analysts expect Tesla's sales to continue to boom.
"With a green tidal wave on the horizon, we believe Tesla will see strong growth in the US through 2021 and beyond, adding to the hot growth the company has seen so far this year in China and Europe," said Daniel Ives, An analyst at Wedbush said.
Tesla's success also depends on the economic recovery from the pandemic. Sales declined around 15% in the second half of 2020 as consumers cut spending on cars during the pandemic.
However, the company is stepping up its efforts to make a more affordable electric car, which in turn could boost sales. In September, CEO Elon Musk said the company would produce a "fully autonomous" electric car worth $ 25,000 in about three years, and last week Tesla cut prices on some of its vehicles.
Selling in China, the world's largest auto market, could be central to Tesla's success.
Tesla could ship a million vehicles in 2022 as China has "flashy demand" that could account for 40% of its global sales, Ives said in December. The country where Tesla began shipping Shanghai-made Model Y vehicles in January is said to be the "heart and lungs" of Tesla's demand growth story.
Tesla is also nearing commencement of operations in India later this year.
"We expect the Indian auto market to double over the next five years, with electric vehicles increasing their share," said David Leggett, automotive analyst with GlobalData.
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