Tesla would capture 21% of the global auto market share by 2030.
Tesla has been making waves in wealth generation over the past few years. The market capitalization of electric vehicle makers is approaching $1 trillion, and some analysts believe it will soon be worth $4 trillion if the auto brand continues at its current pace.
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The electric vehicle industry is expected to reach around 60% market penetration by the end of this decade. With this increased EV momentum, Tesla would reach 21% of the global auto market share.
Gary Black, an analyst at investment firm The Future Fund, wrote on Twitter that when EV adoption hits 60%, Tesla with a 20% share of EVs will be considered a safe haven. Reuters also predicts that Tesla’s stock value will reach $3,000 by 2025, helping the electric vehicle company to significantly increase its market capitalization from its current value.
The American electric car major recently opened its fourth Giga plant near Berlin. The Giga Berlin has established a major beachhead for the automaker in Europe with the potential to expand this plant to produce around five million electric vehicles each year. The Giga Berlin will initially roll out the Model Y and add more cars later.
Thanks to this, Tesla was able to significantly increase its production volume not only for Europe, but also for other export markets. This would ultimately reduce previous import costs for the European market significantly, as the Shanghai Gigafactory shipped vehicles for the mainland. Apart from that, Tesla is also set to start delivering electric vehicles from its Texas Gigafactory this month. Such production and export strategies would help the automaker significantly increase its market share in the global electric vehicle market.
However, despite the growth forecast, Tesla is expected to face multiple bottlenecks in the coming days. Tesla CEO Elon Musk said the company would face challenges due to tight semiconductor supplies and other supply chain issues.
Date of first publication: April 04, 2022, 12:08 PM IST