Former Tesla board member says Elon Musk Company will not remain ‘King of the Hill In Electric Forever’

A former board member of Tesla Inc. (NASDAQ: TSLA) said Tuesday that the company is unlikely to remain “the king of kings” in electric vehicles forever, CNBC reported.

What happened: Steve Westly said on CNBC’s “Power Lunch” that he had been bullish on the Elon Musk-led carmaker for the past 10 years and it is “hard to imagine a car company performing better than Tesla has.”

Westly pointed to the company’s latest earnings release in January, saying it had a “multi-year horizon” and expected to achieve 50% average annual growth in vehicle deliveries.

“No one else in the car world does. With that said, Tesla will not be king of the hill forever, says Westly.

Why it matters: The venture capitalist stated that large commitments have been made for electric cars from older car manufacturers such as General Motors Company (NYSE: GM) and Volkswagen AG (OTC: VWAGY).

“Tesla is not just coming here from the high end,” Westly said of the availability of electric cars from Volkswagen brands such as Audi and Porsche. Tesla is also facing increased competition from Chinese EV rivals, who have cheaper deals.

The analyst noted increased competition in Europe where the company according to him was “No. 1, they are now No. 4. “

See also: Tesla’s share of the European EV market fell to 3.5%

“They face competition from all sectors. They will need to double down to compete. ”

Tesla’s plans to make a more affordable $ 25,000 vehicle have left Chinese rivals who Xpeng Inc. (NYSE: XPEV), Nio Inc. (NYSE: NINE) and others undisturbed.

In January, a two-door $ 4,500 EV made by Wuling – a joint venture between GM and state-owned SAIC Motor – sold out Tesla model 3 in China by almost two-on-one.

Price measure: Tesla shares closed 4.45% lower at $ 686.44 on Tuesday, up 0.34% in the afternoon.

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