BMW CEO Oliver Zipse has responded to Tesla’s bold claims that it expects an average annual sales growth of 50%. The German exec threw doubt on the manufacturer’s ability to maintain its hold on the EV market at the DLD All Stars conference on Monday.
“It won’t be easy for Tesla to continue at that speed because the rest of the industry is moving ahead big time,” said Zipse, per Bloomberg.
The EV manufacturer delivered nearly 500,000 vehicles in 2020 in what was a record year. It is true, though, that more and more established automakers are entering the EV market. With Volkswagen, GM, Ford, Mercedes, and BMW, among others, focusing their attentions on EVs, Tesla will undoubtedly face more competition in the future.
Zipse’s comments came right at the start of one of the sharpest declines in Tesla’s share price since it was included at the S&P 500 Index last December. At its lowest point on Tuesday at 10:00 am, the price had fallen nearly 18% from its value on Friday the week before.
Since then, though, the prices have slowly been working their way back up. Although they have not returned to Friday’s price of $795 a share, at the time of writing the price is hovering at around $735, meaning it has earned back nearly half of what it lost earlier this week.
Similarly, although other established manufacturers entering the electric market will result in Tesla facing stiffer competition, there’s reason to believe their sales will increase in the next few years. Thanks to its expansion in China and entering India later this year, as well as launching a $25,000 EV, which could happen as early as 2022, Tesla sure has potential for growth.
