Intensifying Competition Poses Challenge For Tesla As Rivals Gain Ground In EV Market

(RTTNews) - Intensifying competition in the electric vehicle or EV market is posing a significant challenge for Tesla Inc. (TSLA), with rival automakers vying for a piece of the growing industry.

According to the recent Markets Live Pulse survey conducted by Bloomberg, with input from 630 global respondents, 54 percent expressed concerns about the escalating competition, viewing it as a major risk for Tesla.

Additionally, 26 percent of participants identified CEO Elon Musk's behavior and decision-making as a key concern for the company's shareholders.

Matthew Tuttle, CEO of Tuttle Capital Management, highlighted the unpredictability of Musk's actions, stating that it ranks among the top risks for Tesla.

The survey revealed that 67 percent of respondents believe Musk should prioritize focusing on Tesla, particularly as the company faces pressure on profit margins. This cautionary sentiment emerges despite Tesla's stock experiencing a remarkable 128 percent surge this year, driven by investor interest in the technology sector and Musk's vision of a future dominated by fully autonomous vehicles.

While Tesla currently maintains a substantial lead over both established automakers and emerging startups, its considerable market valuation hinges on its ability to sustain its competitive edge as EVs become more prevalent. The increasing competition and growing adoption of EVs place immense pressure on Tesla to maintain its dominance in the industry.

Notably, Tesla's rivals are gaining momentum. China's BYD Co. recently set a sales record for the second quarter, delivering 352,163 fully electric vehicles. This achievement demonstrates the rapid ground gained by BYD in comparison to Tesla, which handed over 466,140 EVs to customers worldwide, also reaching an all-time high.