Losses expected for Tesla

According to a well-known automotive analyst, key European market share of Tesla has been declining since 2019 when it was one of the most famous electric vehicle brands in the region, but according to a well-known automotive analyst may about to turn over dramatically.

European Electric Car Report’s publisher Mathias Schmidt has predicted that there will be an upsurge in Tesla’s European market share of 20% in 2021 from 13% in last year, putting it in competition with Volkswagen Group, EV leader of the region as CBS Marketwatch reported.

Tesla slowly rises market share

Tesla sold a large number of vehicles in eighteen European markets in March, and 23,840 registrations were found, according to a report by Schmidt. In Europe, it took Tesla's twelve-month to raise its market share to 13%, and it's year-to-date share to 15.6%; this shows that In the West European region, Tesla accounting for every 3rd electric car sold in 2019, and last year only 13% of the market.

According to the analyst, this year, Tesla's European volumes will be 229000. It is predicted that In Europe, 44% more electric vehicles will be registered in 2021 than last year. It will increase its market share by about 20%. In 2019 Tesla easily controls Europe, and it took a 31% market share in battery electric vehicles, and it sold about 109000 cars in the region.

Schmidt exclaimed that the introduction of strict EU fleet emissions targets and the massive fines' specter accelerated European car makers' competition with Tesla for dominance last year.

Headwinds for Tesla

But the flow may be changing in 2021, even though Tesla went to a slow inauguration in January when only 3.5 percent of the battery electric vehicles were registered in Europe that was Tesla's s month. The meaning of the American group's delivery schedule was that it has constantly low volumes near the starting of each quarter, but in January 2020, its market share increased by 5%.

If Tesla can deliver volumes at the upper end of Schmidt's range, it will be competitive with Volkswagen , which had almost more than 20.5% market share in Europe at the end of March. The Swiss bank has exclaimed that, within the coming years, Tesla and Volkswagen will be the two dominant leaders in electric-vehicle sales internationally. Bank analysts expect that Volkswagen will come equal with Tesla in terms of total numbers of cars sold worldwide as soon as the coming year when the two companies will deliver around 1.2 million vehicles each. The Volkswagen Group owns the following brands, including Bugatti, Audi , Bentley, Porsche, and Lamborghini.