Tesla faces pressure as competition for electric vehicles intensifies, says former Ford CEO
Elon Musk brought electric vehicles to the mainstream with You’re here. Today, the electric vehicle company is grappling with the consequences of its own, long-standing innovation. Ford engine CEO Mark Fields told CNBC on Wednesday.
“One of the many things he’s done is pushed the industry to take electric vehicles seriously,” Fields said of Musk, Tesla’s chief executive. “They have real competition now, and that’s why you see some of their share in some of the major markets under a lot of pressure.”
Tesla shares fell for the third straight session against the backdrop of several difficult headlines for the automaker. One, in particular, is that the San Carlos, Calif., Based company lost some of its grip on the electric vehicle market in April.
Fields criticized Tesla’s reliance on selling carbon credits to supplement its profits, suggesting it is a harbinger of new challenges.
“When you look at their cumulative income and their income from last year, they made a lot more by selling CO2 credits than they did for the total profit of the business and the bottom line,” he said. said Fields. “As these credits dry up, there is going to be a lot of pressure to make money and better margins on their vehicles.”
According to Credit Suisse analyst Dan Levy, Tesla’s global market share was 11% in April, down from 29% in March. He noted stock losses in Chinese, European and US markets.
Fields attributed the shift in electric vehicle market share to traditional auto giants, such as General Motors and Ford, advancing in the space as new products are announced and released online.
He pointed out that Volkswagen is now the leader in electric vehicles in Europe and that the Ford Mach E is taking shares in the US Ford, which Fields led between 2014 and 2017, in May revealed its electric F-150 with great fanfare. .
After soaring in 2020, Tesla shares have fallen more than 14% so far in 2021. The stock, which trades more like a tech stock, closed 3% lower on Wednesday at 605.12 $ per share.
Shares of traditional automakers, taking the form of cyclical stocks, are up double digits this year and have outpaced the market until Wednesday.
Ford shares recorded some of the biggest gains, rallying nearly 69% this year to $ 14.91 at the close on Wednesday.