According to a report released by Allied Market Research, the global electric vehicle market was valued at well over $162 billion in 2019. The market was also projected to reach more than $802 billion by 2027, representing a CAGR of 22.6%. The report also revealed that the Asia-Pacific remained the highest revenue contributor in 2019, accounting for $84.84 billion, with a prediction that the market will hit $357.81 billion by 2027. The Asia-Pacific and Europe regions collectively accounted for about 74.8% share in 2019.
Major players operating in the EV market are BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.p.A, BYD Company Motors, Ford Motor Company, and Tesla, accounting for a major electric vehicle market share.
Tesla’s gain in the growing EV market has been recently substantiated with the company’s stocks gaining on the exchange. Tesla is also gaining ground in China as the company manages to set up production in the country, a move that has been predicted to burst China’s EV market bubble and trigger the demise of several local rivals.
Tesla Inc.’s new plant in Shanghai has been producing super-popular Model 3 electric sedans for the past six months. This has catapulted the company to the top of the sales chart while piling the pressure on cash-strapped local rivals. About 18 months later, the first cars from Teslas rolled off the US company’s assembly line in Shanghai. The company’s monthly registrations in China currently exceed 10,000. This has helped the company beat global delivery estimates in the latest quarter.
The shares of Tesla Inc. recently witnessed an appreciation, after Wedbush analyst Dan Ives said industry reports are suggesting the company witnessed in June a robust “snapback of demand” in China for its Model 3 vehicles. According to Ives, the China growth story is worth at least $400 a share in a bull case for Tesla. He also revealed his expectation of EV penetration to “ramp significantly” over the next 12 to 18 months.
“In a nutshell, the success in China out of the gates is a major achievement for Tesla and if this trajectory continues will be a ‘game-changer’ for its EV penetration story over the next decade,” Ives wrote in a note to clients. “The technology innovations around Giga/Fremont remain the key ingredients in Tesla’s success on the battery front and we believe the company is getting closer to announcing the million-mile battery at its upcoming Battery Day in September.”
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