More than half of electric vehicle buyers surveyed by UBS in an annual study said they would prefer to buy an electric car from an incumbent automaker rather than a newer manufacturer like Tesla.
On top of that, the bank found that the likelihood of a U.S. buyer purchasing an electric vehicle actually increased with brands other than Tesla.
These results and other signs of overall stagnation in the electric vehicle market give UBS reason to believe that Tesla’s short- and medium-term growth plans are in danger.
UBS forecasts below-average deliveries for Elon Musk’s automaker, forecasting sales of 1.8 million this year and around 2 million in 2025. That compares to the current consensus among analysts that deliveries would be slightly less than 2 million this year and around 2.4 million in 2025. 2025.
Despite electric vehicle buyers’ clear desire for more options, Tesla remains the top brand to consider and has actually seen an increase in preference among U.S. buyers, according to the survey.
UBS analyst Joseph Spak attributes the growth to traditional brands’ recent struggling electric vehicle efforts in the United States, as BYD managed to surpass Tesla in favorability among Chinese respondents.
The latest sign of trouble for Tesla
It appears the slowing demand for electric vehicles that has dogged Musk’s opponents since last year is finally catching up with Tesla.
The electric vehicle maker last week reported its lowest quarterly results since 2022 and the company’s first year-over-year quarterly decline since 2020.
So far, an aggressive price-cutting campaign made possible by Tesla’s huge profit margins has been enough for Telsa to keep up with the changing demographics of electric vehicle buyers, who are becoming increasingly frugal and practical in their purchases.
However, if demand for electric vehicles continues to weaken, simply lowering prices may not be enough. This next wave of electric vehicle buyers are also placing more importance on running costs and buying their electric cars over hybrid and gasoline cars.
Growing interest in hybrid vehicles, which Tesla doesn’t sell, could pose another threat.
A recent study from the Boston Consulting Group predicts that growing interest in hybrids is likely to peak among mainstream and premium sedans, coupes and crossovers – Tesla’s bread and butter.
businessinsider
