Michelle Krebs, senior director of automotive relations at Cox Automotive, the parent company of businesses including Kelley Blue Book, Xtime, Autotrader.com, and Manheim believes that Tesla Inc’s (NASDAQ:TSLA) more than 69.9% market share is going to drop significantly.
What happened: Benzinga had the chance to catch up with Krebs last week as the company prepared to release its second-quarter financial results. It was reported that Tesla’s revenue came in at $16.93 billion, compared to the $17.1 billion expected, while earnings per share came in at $2.27, above the $1.81 projections.
“We anticipate that over time Tesla is the leader, but there’s a lot of competition coming on, and that they will drop their market share,” Krebs said. “They now have [around] 70% of the market right now — I’ve seen estimates from Bank of America that show they’ll be down to 11% in the next five years because there’s so much competition coming,” she added.
Tesla sold an estimated 302,000 electric vehicles in the United States in 2021, with the next best-selling EV being the Ford Motor Company (NYSE:F) Mustang Mach-E, with 27,140 units sold, according to car and driver.
Also Read: Jim Cramer Says Ford Stock Could Jump To $15 On Earnings If Tesla Is Mentioned: Here’s Why
Krebs also noted that Tesla doesn’t have many new products coming, with CEO Elon Musk recently confirming the Cybertruck’s summer 2023 release date, versus Ford’s F-150 Lightning, which is already on the market.
Why it matters: The average price of an electric vehicle is around $60,000 — those prices could come down to a more attractive price to consumers as more players enter the electric vehicle market, producing more vehicles while driving the price down.
