As more and more EV startups emerge the term “Tesla Killer” is often thrown around, however the firm’s Head of Investor Relations Martin Viecha insists the real competition remains internal combustion engine vehicles. Viecha took to Twitter to state that over 90% of vehicles sold this year will be traditionally powered and that this is Tesla’s main concern.
For the past 5 years, I've been asked some version of "and what about all the competitors" pretty much daily. Well over 90% of cars sold *this year* will be ICEs. It's the ICEs that lose share to *all* competitive EVs. It's surprising that this is still not an established view.
Tesla is clearly of the viewpoint that more electric competition is a good thing. After all, CEO Elon Musk has reiterated many times that he hopes Tesla will motivate the rest of the industry to transition to electric. More companies making more EVs ultimately means greater choice for the consumer, which is a good thing. And with the majority of the market still making petrol, diesel and mild hybrid vehicles there’s clearly plenty of opportunity for newcomers like NIO, Lucid and Rivian to emerge in the growing EV space.
This view is shared as well. Lucid Motors CEO Peter Rawlinson (an ex-Tesla employee) has often spoken about how the Air sedan aims to compete with the Mercedes S-Class and not other EVs like the Tesla Model S. Now that the EQS is here that’s probably an Air competitor too, but the point still stands – Lucid is looking at directly targeting non-EVs. And with continued advances meaning EV range and pricing is getting closer and closer to that of ICE vehicles, they have good reason to do so.