Elon Musk has set ambitious goals for the company which includes selling 20 million cars by 2030 in order to increase the company’s worth to trillions of dollars. To preserve its market share in the automotive industry, experts have suggested that Tesla should expand its product lineup and drop prices to offer more affordable options. Only with four high-end models, Tesla has set the bar high and made significant progress in the industry by becoming the top seller of battery-powered cars globally. Tesla shipped 1.3 million units in 2022, and the Model 3, Model Y, Model S, and Model X accounted for approximately 65% of electric vehicles sold in the US. In order to sustain its leadership in the industry, Tesla should expand its product offerings to reach a wider audience and increase accessibility to its technology.
Automotive industry experts predict that Tesla’s rapid growth may reduce if the company does not offer more affordable and widely accessible options to consumers. Companies like Toyota, have a broad range of offerings, from the $22,000 Corolla to the $100,000 Lexus LC, and many options in between. Volkswagen on the other hand sells budget-friendly hatchbacks as well as luxury vehicles like Porsches, Audis and Bentleys. General Motors also offers a wide range including Chevrolet and Cadillac. In order to sustain its growth and maintain a leading position in the industry, Tesla must consider expanding its product offerings for a wider customer base.
Due to its limited number of lower-cost options in its product lineup, Tesla faces increasing competition from other electric vehicle manufacturers. Manufacturers like China’s BYD are rapidly closing in on Tesla’s leading position in the global EV market. BYD has a diverse range of vehicles and Tesla primarily focuses on luxury models, according to Michael Dunne, founder of the EV consultancy ZoZoGo. The lack of more affordable options in Tesla’s lineup makes the company vulnerable to competition from the rest of the manufacturers with a broader range of products.