Biggest threats to Tesla in 2023 from cheaper electric cars to supply chain issues

TESLA has the highest reported market share of newly registered electric vehicles at 65% through the third quarter.

But the emergence of more affordable electric cars and the continuation of supply chain issues threaten Elon Musk’s company’s dominance.

Tesla’s market share of newly registered electric vehicles (EVs) dropped to 65% from 71% last year and 79% in 2021, CNBC reports.

S&P predicts Elon Musk’s car company’s market share will continue dropping as the number of available EVs is expected jump from 48 to 155 by the end of 2022.

Tesla’s least expensive vehicle is its Model 3 sedan, which holds a $45,000 starting price.

The U.S. Sun previously highlighted five EVs that are under $40,000.

Our list’s five EVs costing less than $40,000 are from legacy manufacturers like Hyundai, known for producing affordable vehicles.

Tesla has previously admitted that they haven’t been able to establish itself as an affordable driving option.

During a Q&A portion of a stockholder meeting in August, Elon Musk said: “I do feel like we’ve raised our prices quite a few times there, frankly, [to] embarrassing levels.

“But we’ve also had a lot of supply chain and production shocks, and we’ve got crazy inflation, so, you know, I’m hopeful.”

Elon Musk confirmed during a recent earnings call that Tesla is working on a car that costs less than its $45,000 Model 3 but doesn’t have a launch timeline, S&P reports.

Some EV makers like Tata Motors have gone so far as to release a $10,000 electric hatchback called the Tiago.ev.

While Tata Motors has lagged behind world competitors in EV (electric vehicle) production, the Indian-based manufacturer can still make a significant splash in its home country.

India has strict protectionist laws making it difficult for foreign auto manufacturers to launch vehicles without on-site production, Electrek reports.

Due to this protectionist legislation, Tesla has been denied the ability to launch in India several times.