For some time, Tesla has had the all-electric vehicle market essentially all to itself, which helped the automaker command a dominant share of that particular part of the industry. As legacy automakers continue to roll out new (and more) EVs, that is quickly changing, however, with each beginning to eat away at that market share. This is a shift that Ford CEO Jim Farley recently acknowledged while speaking at the Wall Street Journal‘s Future Of Everything Festival recently, too.
“There’s no doubt about it the demand for Tesla is changing and in some sense is deteriorating,” Farley said. “We have three electric vehicles – the F-150 Lightning, the E-Transit, and the Mustang Mach-E. We only run against Tesla with the Mach-E and we’ve definitely seen a lot of new customers shop us. I can’t put my finger on whether their product is just getting old? Is it the Prius effect? Like when everyone had a Prius, it wasn’t the Prius anymore. So is it that? I.E., the product getting commoditized, or is it his brand? I can’t tell yet but it looks like there’s something going on.”
Thus far, the Ford Mustang Mach-E – in particular – has proven to be a strong draw for Tesla owners even as its prices remain higher in general, as well as those who previously owned Honda or Toyota vehicles. On the flip side, over the past few months, both Ford and Lincoln owners have been less likely to defect to Tesla, too.
Long known to exchange friendly comments about each other’s business strategy, both Farley and Tesla CEO Elon Musk recently continued that trend, with Musk defending The Blue Oval against critics who point to its poor EV financial results in 2022, while Farley also praised Tesla’s ability to react quickly to changing market conditions – though he also criticized its refusal to update its vehicles more frequently.
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Comments
Tesla hasn’t taken up the traditional automakers’ planned obsolescence strategy (yet). There isn’t anything new from Tesla that makes people want to make the trade for.
That’s also fairly true. Tesla is more subscription based in terms of income (well, that and crypto schemes and carbon credits to actually make money).
The “somethings going on” is that demand for all EVs is waning because they are too expensive and inconvenient, and people are running out of money. Fattened pandemic pocketbooks have been drained by inflation.
Pretty much this. The economics.of the situation are deteriorating. Tesla is seeing market share slip because there’s already enough supply to meet demand for EVs, and every automakers is inserting themselves into the segment. So everyone is fighting over the same buyers, and with more players involved, it’s not surprising.
Get scary when Jim thinks.
Tesla sales have diminished because Musk angered its primary base of customers. PERIOD. I can already see Ford UNDER PRODUCING thanks to Farley’s miscalculations (as he did with Maverick and Bronco) creating more anger and frustration from Ford’s customer base.
So you think that Tesla buyers buy solely based off their opinion of one man? Man, it’s gotta be tough to be anyone in the rest of that organization that you think has literally no impact.
My daughter just got her new Mach-E April 28 hasn’t driven it 50 miles yet Sunday the 7
Of may it stop on her in the middle of a busy street she called ford to it it tows it was 5 minutes from my house I called police a so someone wouldn’t run into her I got there no tow truck get me sat there for a half hour it started up she got in touch with ford they said it was a stuck open contactor over headed they would update the system in 2 weeks I got on line found out they had the same problem with the 2022 my daughters is a 2023 ordered October 2022 still haven’t fixed this problem.this is a dangerous problem your Mach-E stop on a busy street. My daughter wasn’t upset to bad because our family have been car people for a long time I have taught my daughter not to panic in times like this.🤦♂️🤷🏼♂️
The concept of a sentence seems to have eluded you.
If I was buying a EV (and I’m not) it would be a Tesla. They remain the best developed EV available. Tesla could use a new model or at least significant interior upgrades.