"Elon Musk wants the world to view Tesla Inc. ( NASDAQ: TSLA) as a robotics and artificial intelligence company. The truth is, it makes money from cars. It remains the number one electric vehicle (EV) company in the United States, with half the market. While it is slipping in China and Europe, it retains a strong presence in both places."
"Musk has damaged his own brand due to his controversial and very public views on several subjects. He remains the most prominent chief executive officer in the world, and certainly the most visible. The conventional wisdom is that he has let BYD in the door as it became the top EV manufacturer, ahead of Tesla, last year. However, BYD's success is because it is a Chinese company that sells EVs to the Chinese."
"The one company Musk should be watching is Hyundai, the world's third-largest car company, based on unit sales. It also owns the Kia brand. Hyundai's launch of the Ioniq brought a reasonably priced, world-class EV into the market. Industry views of Hyundai cars are stellar, and it has the low price point customers are looking for. Musk's failure to introduce a $25,000 EV has hurt Tesla."
Tesla continues to generate its primary revenue from vehicle sales and holds roughly half of the U.S. EV market, though share is declining in China and Europe. Musk's controversial public statements have weakened his personal brand despite his high visibility as CEO. BYD overtook Tesla largely through dominance in China, while global automakers have developed competitive EVs. Hyundai, including Kia, has launched well-regarded, affordably priced EVs like the Ioniq and Kona, offering a broad model range and capturing nearly 10% of the U.S. EV market, positioning it as a major competitor to Tesla.
Read at 24/7 Wall St.
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