Tesla Struggles to Capture EV Market Share in Many Regions


In North America, Australia, and Oceania, Tesla dominates the battery-based electric vehicle (BEV) market. However, when you look at other regions of the world, Tesla’s market share dwindles. This can be attributed to a number of factors, including VW’s aggressive marketing in Europe and the popularity of Wuling’s EV models in Asia. Morris Garages (MG) has also been successful in South America with its EV offerings. Tesla has been working hard to increase its market share in these regions, but it has been met with some challenges.

So – Tesla isn’t the global leader?

One of the biggest challenges Tesla faces is its high price point. EV models from VW and Wuling are significantly often cheaper than Tesla’s, making them more appealing to budget-conscious consumers. MG’s EV models are also competitively priced. Tesla has attempted to address this issue by introducing lower-priced EV models, but so far these efforts have not been very successful.

Tesla Hasn't Conquered the World
“Tesla’s dominant position in North America – an estimated 70.6 percent share of all BEV unit sales in 2021 – has so far only been replicated to any significant degree in Australia and Oceania (65.8 percent)”. (Image: Statista)

Another challenge Tesla faces is a lack of charging infrastructure in many regions outside of North America, Australia, and Oceania. This makes it difficult for EV owners to keep their cars charged, which is a major deterrent to EV ownership. Tesla has been working to increase the number of charging stations around the world, but it has been a slow process.

Tesla has hardware quality issues

Tesla cars are reported to fall apart soon after purchase, due to the company’s rushed efforts to increase production. The Model S, in particular, has been cited for a number of quality issues, including door handles that don’t work, water leaks, and faulty suspension systems. Tesla has been known to be a high-quality car manufacturer, so these reported issues are particularly concerning for consumers. Even if just a few post their experience of lost bumpers or doors falling off on social media, this reaches many prospects and potentially halts all their interest in buying a Tesla car.

Also interesting: Are EVs Really Better for the Climate?

Without a doubt, Tesla is very strong in the software game, but it might lack the robustness and quality of a company like Volkswagen, which has been there for 85 years now, spending a lot of time and resources on optimizing its processes and quality assurance. Agility is a fantastic trait of a software company because software can be updated after purchase and fixes can be implemented for the masses without even sending a technician to a customer, but if a door fell off, there’s no remote patch to fix that. Agile might not be a suitable value for companies that are building cars.

What does the competition look like for EVs around the globe?

In Europe, the EV market is dominated by Volkswagen. The German automaker has a strong lineup of electric vehicles, including the e-Golf and the ID. family of cars. VW also has a significant presence in China, where it sells EVs under its joint venture with JAC Motors. In Asia, the EV market is dominated by Wuling. The Chinese automaker sells a wide range of EVs, including the Hong Guang Mini EV and the Hong Guang EV. In South America, the EV market is dominated by Morris Garages (MG). The British automaker sells a range of EVs, including the MG ZS EV and the MG GS EV.


Volkswagen Group at the Chantilly Arts & Elegance 2022 - GEN.TRAVEL Design Study
VW showcasing design study vehicle GEN.TRAVEL at Chantilly Arts & Elegance 2022 (Image: Volkswagen)

Volkswagen (VW) is a German automaker founded in 1937 by the Volkswagen Beetle. It is the largest automaker in the world with 12 brands, including Audi, Bentley, Bugatti, Lamborghini, Porsche, and Scania. VW has a long history of producing passenger cars and commercial vehicles. In recent years, it has made a concerted effort to produce electric vehicles (EVs) and has been moderately successful in doing so.


Wuling Hong Guang MINIEV
“Wuling announced on August 8 that its cumulative electric vehicle sales in China have reached one million units since its first EV was launched in 2017”. (Image: SAIC-GM-Wuling)

Wuling is a Chinese automaker that produces light-duty vehicles. The company is headquartered, in Liuzhou, Guangxi, and was founded in 1982. In 2017, Wuling announced that it would be entering the EV market with two new models. While Tesla has had much success in North America, Australia, and Oceania, Wuling has been able to capture a larger EV market share in Asia, particularly in China.

Morris Garages

MG4 Electric
MG recently announced the availability of the MG4 for the European market. (Image: MG)

Morris Garages (MG) is a British automotive maker that has been in business since the 1920s. MG is known for its sporty, stylish cars and has a long history of producing high-quality vehicles. Recently, MG has shifted its focus to battery-based electric vehicles (BEVs). The company has announced plans to produce a range of BEVs starting in 2020. While Tesla currently dominates the EV market in North America, MG appears to have taken the lead for the markets in South America.

Closing thoughts

Tesla’s struggles to gain EV market share outside of North America, Australia, and Oceania are due to a number of factors. The company has been working to address these issues, but so far its efforts have not been very successful. Tesla will need to continue to work hard if it wants to increase its EV market share in these regions. The market is still young and volatile. At some point in the future, a change to EVs for possibly all car owners is likely to happen and when that happens, whoever is trending the most will gain a huge advantage over the contenders.

YouTube: Uncovering Tesla’s horrendous build quality (Corner Balanced)

Photo credit: All images are owned by their respective companies, as credited directly beneath each photo. All media has been provided for press usage.

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Christopher Isak
Christopher Isakhttps://techacute.com
Hi there and thanks for reading my article! I'm Chris the founder of TechAcute. I write about technology news and share experiences from my life in the enterprise world. Drop by on Twitter and say 'hi' sometime. ;)
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