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Tesla (NASDAQ:TSLA), with a rich valuation and facing an increasingly competitive environment, looks like a sell at these levels. The company has had the electric vehicle (EV) market largely to itself for years. None of the major automakers around the world such as Volkswagen (OTCPK:VWAGY), Toyota (TM), GM (GM), Hyundai (HYMLF), Daimler (DDAIF) or Ford (F) have put much effort into the small but growing EV market, now approaching 3% of new vehicle sales globally, or around 2 million units annually. Until now.
Now the major automakers are combining to overtake Tesla in EV unit sales, technology, profits and market share.
Majors Entering the EV Market in Force
Now that the EV market is beginning to show the kind of growth and volume that can support new product lines, the world's largest automakers are entering the EV market in force - dedicating tremendous resources to EV production and development.
For example, back in late 2017, VW, the leading carmaker by unit volume worldwide, approved a plan to spend an additional $40 billion dollars over five years to become the #1 seller of EVs by 2025. More recent estimates put VW's investment in EVs at $91 billion. That investment is beginning to bear fruit.
VW isn't the only major making big investments in EVs either. Daimler has announced investment of over $40 billion in EVs, including a purchase of 20 billion euros just on battery cells from the major battery makers. GM announced 20 billion in EV investment through 2025 earlier this year, and Ford
