Who Are the Biggest Tesla Competitors?

Many anticipate electric vehicles becoming relatively commonplace within the next couple of decades. This means you are likely to see more electric vehicles on the market in the coming years in anticipation of a massive increase in demand. Tesla is seen by many to be the leader in the electric vehicle (EV) industry. However, there are some key Tesla  competitors that are also currently offering or are in the process of developing high-quality electric vehicles. 

Why Tesla is considered the leader in the EV industry

Perhaps the primary reason Tesla is considered to have an edge over the competition is that they were simply the first ones to go all-in on electric vehicles. In fact, their entire brand is built around being the leader in the EV industry. However, Tesla has other perceived competitive advantages, including:

• Advanced autonomous driving features
• Longer lasting battery power than many brands
• A dedicated and loyal customer base

Each EV manufacturer looks for ways to create their own competitive advantage in the continually growing industry. While Tesla has a clear advantage at the moment, they could see more companies put forth high-quality EV cars in the future. 

The top electric car Tesla competitors

There are more than a dozen car companies rapidly increasing their focus on the EV industry, and narrowing the list down was not easy. However, the following are nine competitors that could become the top competitors to Tesla in the future. 

Nio

Nio is an electric vehicle manufacturer that has been in operation since 2014. They are based out of China and sell primarily within their region of the world, although they have intentions of expanding globally. Nio has consistently seen surges in their sales numbers since officially hitting the market in recent years. In addition, their stock price on the public trading market increased well over 1,000% in 2020, indicating it has the financial backing and public trust to become a true competitor to Tesla in the future. 

BYD Company

BYD Company is also a popular manufacturer in China. They are well-known for creating batteries for electric cars, in addition to other battery-powered products (i.e. bikes, solar panels, forklifts, etc.). They have also increased their production of automobiles, which makes sense given their capabilities of creating long-lasting car batteries — the number one obstacle to breaking into the EV industry. They primarily sell in China, but they could expand globally and compete with Tesla in the United States and abroad. 

Lucid Motors

Tesla competitors include Lucid Motors

Lucid Motors expects to make their cars available in 2022. They are an EV manufacturer based out of Newark, CA. Many see Lucid as the future high-end brand of Tesla, while Tesla continually moves towards making their cars more affordable for the average driver. Lucid has released information about their prized Lucid air, claiming that it has over a 400-mile battery range (EPA), can go from 0 to 60 in under 2.5 seconds and can reach a top speed of over 200 mph. This would put the car’s performance on par with just about any gas-powered vehicle, including Ferraris and Lamborghinis.      

Volkswagen

Volkswagen is a popular German manufacturer that has made a strong push towards developing electric vehicles. What separates Volkswagen from Nio, BYD and Lucid is they are an already established company that people trust, having been in operation since 1937. After Tesla opened a factory in Berlin (Volkswagen’s own backyard), Volkswagen committed strongly to rivaling them in Europe. They have committed to spend €73 billion on developing their EVs and plan to produce 1.5 million by 2025. Their most popular model is the Volkswagen ID.3, which could hit the U.S. market within the next few years. 

Li Auto

Li Auto does not get the attention many other car manufacturers get, but they could emerge as a big name in the EV industry. Founded in 2015, this Chinese electric vehicle manufacturer specializes in plug-in hybrids, providing the driver with the option to use gasoline or electric. This is in large part in response to the lack of charging stations in China. Although Li Auto has not made its way globally yet, they could expand as electric vehicles increase in demand, and their promising EV technology is not to be ignored. 

Nikola Corp.

In an industry that is largely dominated by foreign competitors, Nikola, which is based in Phoenix, AZ,  is one of the few domestic rivals to Tesla. In fact, they even seemingly based the company name as a spin-off from Tesla (named after famous inventor Nikola Tesla.) However, Nikola is still a very young company with a lot to prove in the EV industry. Nevertheless, they plan to take their intriguing and innovative concepts into production in the near future, and they are certainly a name to watch moving forward as they have the potential to emerge as a top competitor to Tesla in the United States. 

Workhorse Group

Workhorse Group is based in Cincinnati, OH and specializes in EV manufacturing. However, they tend to focus their development on electric utility vehicles. Similar to Nikola, they are also young in the industry as well (founded in 2019) with a lot still to prove. However, their progress and funding thus far make them an intriguing name to watch closely as they continue their growth.

Canoo Inc.

Canoo is an electric vehicle manufacturer that operates in Torrance, CA, just outside of Los Angeles. They focus their production on commercial electric vehicles such as minivans, rental vehicles and rideshares. While they may not be a popular buy for the average person, their innovation within the industry has the potential to change the way delivery companies and other commercial-style vehicles operate.

Traditional auto companies are Tesla competitors, too

Most big names in the automotive industry are starting to develop their own electric vehicles. This includes names such as Ford, General Motors, Honda and Toyota. Truck and military manufacturer Oshkosh is also starting to develop electric vehicles. Which of these big industry names will emerge as a top competitor to Tesla in the EV industry is yet to be determined, but there is little doubt that they are important names to watch moving forward.