The global electric car market hit the accelerator pedal in 2021, with the total number of units sold more than doubling to 6.6 million, despite COVID-related disruption. As the transition to zero-emission motoring gathers pace, sales are expected to skyrocket even higher in the coming years. Tesla is top dog right now, but both established manufacturers and innovative start-ups are on its tail – and perhaps even ready to overtake.
Read on to get up to speed with the major players in this turbo-charged industry and discover who is leading the race. All dollar amounts in US dollars.
Leading the pack – for now, at least – is Tesla. Last year, Elon Musk's trailblazing electric vehicle (EV) company delivered 936,372 vehicles. Admittedly, this was slightly short of the one million target that Musk had previously announced, but was still an 87% increase from 2020.
Tesla's most affordable EV, the Model 3, is also its best-seller. It was the world's most popular electric car in 2021, with around 501,000 units sold, and is currently the best-selling EV of all time.
Tesla also shifted around 411,000 units of its Model Y entry-level SUV last year. Other models sold by the company in 2021 – admittedly on a much smaller scale – include its Model S luxury sedan and Model X high-end SUV.
Profits have increased significantly and Tesla temporarily reached a trillion-dollar valuation in autumn 2021, making it more valuable than its five biggest rivals combined.
Tesla has been able to sidestep the chip shortage that is currently plaguing the industry by switching to more widely available semiconductors as, unlike competing EVs, Tesla vehicles can work with a variety of chips.
However, supply chain headaches and other factors, such as the delay in getting its first European manufacturing location, the Gigafactory Berlin-Brandenburg, open are slowing production, particularly of the S and X models.
Putting its focus firmly into fixing its production issues, Tesla isn't releasing any new models this year – not even the hotly-anticipated Cybertruck, which was originally slated to launch in 2021 and has since been pushed back to 2023.
Other EVs in the production pipeline include a more budget-friendly $25,000 (£18.5k) hatchback model, as well as the new Tesla Roadster. Musk will certainly have to pull out all the stops in the months and years ahead to fend off the competition, however, which is coming in thick and fast.
After sleeping behind the wheel for years as Tesla edged ahead, older automakers have finally sprung into action. The most likely contender to knock Musk's company off the global top spot is the Volkswagen Group.
The business had a stellar 2021, doubling its EV deliveries to 369,000 units despite the pandemic restrictions, chip shortages, and supply chain issues.
The group's most popular models such as the WV ID.4 and ID.3 have been selling like hot cakes, as have other in-demand Volkswagen Group EVs, including the Audi Q4 e-tron and Porsche Taycan.
Although the Tesla Model 3 was the top-selling EV in Europe last year, Volkswagen recorded the continent's most EV sales overall during 2021. Europe represents 35% of the global EV market, so this is quite the feat.
The German carmaker now has a 12% share of the worldwide EV market, which is not far off Tesla's 14%, according to market research company Canalys. Volkswagen chairman Herbert Diess believes the group can surpass the US firm by 2025.
Analysts, including forecasters LMC Automotive, tend to agree. To pull it off, Volkswagen has pledged that 70% of the cars it sells across Europe will be EVs by 2030. It's also doubling down on its efforts to corner the untapped US market.
Just as bullish as the Volkswagen chairman, General Motors CEO Mary Barra is adamant that her company can and will overtake Tesla by 2025.
The US market represents just 8% of global EV sales, and only 4% of new cars sold in the country last year were electric. Following President Biden's pledge that half of new US vehicles sold will be electric by 2030 – as well as his government's massive investment in nationwide charging infrastructure – the American market is set to boom in the years ahead.
Tesla's market share percentage hovers around the mid-60s in the US, but General Motors is bending over backwards to erode it and, along with a slew of other competitors, is well on the way.
General Motors' most popular models at the moment include the Chevy Bolt EV hatchback and EUV crossover, which was America's fourth-bestselling EV in 2021. However, the company is only just getting started – Stateside, at least.
The goal is to produce one million EVs by 2025, and the Detroit-based carmaker is putting its money where its mouth is by investing $35 billion (£25.9bn) to make this happen.
In the space of three years, the automobile giant is planning to launch 30 all-electric models worldwide, two-thirds of which will be available in the US, including the first all-electric Cadillac LYRIQ.
General Motors has a valuable foothold in China too, which is currently the world's leading EV market and accounts for about half of all global sales.
The US automaker's collaboration with Chinese manufacturers SAIC (which owns MG) and Wuling has resulted in the tiny $4,500 (£3.3k) Hongguang Mini EV, which has been China's best-selling EV and the global runner-up for two years' running.
The budget-friendly Hongguang Mini EV doesn't quite compete directly with Tesla's more high-end, feature-packed models. However, it has still nibbled away at the US carmaker's market share in the People's Republic, which dropped 2% in 2021, ending the year at 7%.
Tesla's Model Y was still the country's third best-selling EV, and the Model 3 its fourth.
Back to Tesla's American home turf. Ford is already giving the all-electric automaker a run for its money with game-changers like its Mustang Mach-E, which was America's third most popular EV last year after the Tesla Model 3 and Model Y.
Ford has ambitions to surpass Tesla, but its CEO hasn't set a deadline and wants to outmanoeuvre General Motors first. The company is investing billions in battery plants and expects to roll out 600,000 EVs in the next two years.
Another legacy player, Toyota won't be relinquishing its position as one of the world's largest automakers without a fight. Having lagged behind in the EV race, the Japanese manufacturer is accelerating its transition to electric.
Toyota has promised to invest $17.6 billion (£13bn) in the process and launch 30 EVs by 2030, building on its pledge to release 15 by 2025, and make Lexus an all-electric brand by 2035.
Stellantis, the monster automaker formed last year following the merger of Fiat Chrysler and PSA Group, is committed to becoming the global leader in low-emission vehicles.
It's investing $35.5 billion (£26bn) in vehicle electrification by the end of 2025, and plans to launch 55 EVs in Europe and North America during the same time period. This will be across across its 14 brands with many, including Fiat, Chrysler, Alfa Romeo, and Opal, set to go all-electric by 2030.
The Renault-Nissan-Mitsubishi alliance is behind two of the world's most popular EVs: the Renault Zoe and Nissan LEAF. Collectively, they're yet another competitor that's going all-out to eclipse Tesla.
The triumvirate is planning to launch 35 EVs by 2030, as well as investing $26.1 billion (£19.3bn) over the next five years to develop the vehicles and their associated tech. Nissan will take the charge on battery development, while Renault will oversee the unified electronics systems.
South Korea's Hyundai is pegged as a major Tesla competitor, too. Its all-electric IONIQ 5 is similarly priced to Tesla's Model 3 but is considered to be a better drive by some, while the group's luxury vehicle Genesis division is probably making Elon Musk a tad nervous as well.
Adding to the threat, Hyundai is expected to have the largest range of EVs by 2025 according to an analysis by UK car seller Peter Vardy. It already offers the largest model range in Europe, where its subsidiary Kia is also a key contender.
Mazda has only recently embraced electric, but the Japanese automaker is making up for lost time by introducing three new all-electric and five plug-in hybrids by 2025, including the MX-30, which is already on sale in the US.
What's more, Mazda is planning to make electrified versions of all its vehicles by 2030, including its coveted sports cars and SUVs.
Chinese automobile makers Geely recently unveiled plans to put the company "at the forefront of the global automotive industry". It expects its EV sales to reach almost one million units a year by 2025 and it will have launched 10 EVs by then, as well as a new battery-swapping brand to complement Zeekr, its new all-electric brand.
Geely subsidiaries are also joining the fray, including Volvo, which has partnered with its parent on the luxury Polestar EV brand, a strong Tesla rival. Volvo is also planning to go fully electric by 2030. Lotus, a British-basked carmaker that's also owned by Geely, aims to reach the milestone by 2028.
Among the long list of legacy automakers scrambling for dominance, particularly at the luxury end of the market, is BMW Group, which sold its millionth EV in December 2021.
The group will have 12 all-electric cars on sale by 2023, and expects at least 50% of its global sales to be fully electric by 2030. Its MINI brand is slated to become to all-electric sometime during the early 2030s.
Mercedes-Benz is going even further. The German automaker is spending $45.5 billion (£33.5bn) on its green transition, and is gearing up to go completely electric by 2030.
The firm is currently working with partners to build eight gigafactories to make the battery cells and systems required. If all goes to plan, there'll be an all-electric alternative for every model the company makes by as early as 2025.
BYD had three models in the top 10 bestselling new energy cars in China last year, including the nation's second best-selling EV, Qin. The state-owned automaker is a force to be reckoned with in the country and is moving into foreign markets. Last year it debuted its Tang SUV in Norway, and has launches in Australia planned. The company is also reportedly working with Toyota on an affordable electric car.
Other key legacy players in China's EV market, which is dominated by homegrown manufacturers, include Changan Automobile, Chery, Great Wall Motor, and GAC Group.
Innovative start-ups are also becoming major players in the global EV market, especially in China. Competing in the same bracket as Tesla's SUVs is billionaire Li Xiang's EV company, Li Auto. Li Auto produces the Li One, which is one of China's new best-selling electric cars.
Li Auto has started building a new plant in Beijing and plans to launch a luxury sports-utility EV in 2023. As well as that, it's said to be hatching plans to expand globally, starting with a potential offshore production base in Europe.
XPeng is another Chinese EV start-up that's big in the domestic market and is expanding overseas. Hot on the heels of Geely and BYD, Xpeng has already launched two EVs in Norway. The company's EV line-up consists of two sedans and an SUV, with an additional SUV aimed at international markets launching this year.
Most intriguingly of all, the company says it will release a road-capable flying car by 2024.
Sticking with the theme of Chinese EV start-ups that are expanding abroad, the Shanghai-based NIO currently produces four EVs: a coupe and three SUVs. It's also working on a number of others, including two sedans.
NIO's key competitive edge is its highly developed battery-swapping tech, which it's currently taking global, having recently opened its first swap station in Norway. Norway, as the undisputable world leader in EV adoption, is fast-becoming the launchpad for Chinese EV brands in Europe.
The Baidu and Tencent-backed WM Motor is yet another Chinese EV start-up that's aiming to tempt customers away from Tesla, and also has its sights firmly set on global expansion. The company recently launched two sedans, one designed specifically with the European market in mind, adding to its existing line-up of two SUVs.
Following a recent funding injection of $300 million (£220.6m), the firm is in an excellent position to grow its offerings and increase its market share.
Start-ups constitute a much bigger chunk of the EV market in China than anywhere else in the world. That said, innovative new manufacturers are still springing up in other key markets, such as the US.
Rivian is among the country's most promising examples. Despite production woes and an ongoing dispute with Tesla, which has accused Rivian of stealing staff as well as "trade secrets", Rivian has gone from strength to strength. Prices for its R1T electric truck start at $67,500 (£49.6k), and the company also recently launched its new family-friendly sports-utility vehicle.
Along with Rivian and truck-maker Nikola, Lucid Motors is one of only three US EV start-ups that has actually managed to launch a vehicle and sell it to the buying public, although some other American newbies, including Canoo and Fisker, are almost there.
Lucid's eponymous Lucid Air sedan, which is available in two other more affordable variants, is billed as the "world's fastest-charging" electric car and is shaping up to be a formidable Tesla Model S competitor. It looks like an exciting future lies ahead for the company: upcoming plans include a major factory expansion, as well as the launch of a Lucid Motors SUV and other EVs.
Europe's EV start-ups haven't released any models to the wider public as yet, but that's set to change fairly soon.
Among the numerous upcoming launches of note is the Lightyear One, a solar-electric car manufactured by the Netherlands' Atlas Technologies. Also in the making is UK start-up Arrival's electric car, designed in partnership with Uber. Luxury EVs from firms such as Austria's Piëch Automotive will also be entering the market soon.
China, Europe, and the US account for 93% of the global EV market at present, meaning the eventual uptake in other parts of the world is likely to be enormous, particularly in countries like India.
The major Indian players include Mahindra Motors, which is launching 16 EVs by 2027, as well as Tata Motors, which expects to bring 10 EVs to market by 2025. Tata Motors is the parent company of Jaguar, which is also counting down to 2025 as the UK-based luxury vehicle brand is aiming to go all-electric by then, and its offshoot Land Rover should have also released six EVs.
Elsewhere, Vietnam's VinFast, which is the automotive subsidiary of the country's biggest conglomerate, is making strides to enter overseas markets. The carmaker is set to launch two SUVs in the US this year, which will undercut the Tesla Model Y in price, yet offer a similar spec.
With so much competition all around the world, it's safe to say that Tesla certainly has its work cut out to maintain its pole position in the global EV market.
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