Tesla - How to compete in international markets?

Founded in 2003 and headquartered in California, Tesla ranks as the world's most valuable automotive brand as of June 2022 and among the 15 most valuable brands across all industries in 2021. In the same year, Tesla led the plug-in electric vehicle market in sales. The majority of its models are electric passenger vehicles, particularly sedans and crossovers. However, plans are underway to release Tesla's first electric light truck in 2023, following various production delays. Globally, Tesla's vehicle deliveries reached a record 935,950 in 2021 and have been steadily increasing year-over-year as of the second quarter of 2022, despite a global shortage of automotive semiconductors.

Currently, American technology companies are the most valuable brands in the world, occupying the top four spots in 2021. Apple tops the list with a brand value of $408 billion, followed by Amazon, Microsoft, and Google. The highest-ranked non-tech company is Coca-Cola, which ranks sixth. Samsung ranks fifth.

The world's leading brands in 2021 (by brand value) Data source: Statista.com

Tesla was the best-selling electric vehicle brand in 2021. That year, Tesla sold nearly 936,200 plug-in electric vehicles worldwide. BYD and the SAIC/GM/Wuling joint venture outsold Volkswagen that year. BYD, which ranked second, is China's leading electric vehicle manufacturer by sales.

Estimated global plug-in electric vehicle sales in 2021, by automaker (unit) Data source: Statista.com

What are Tesla's vehicle deliveries in 2022? Tesla delivered just over 343,800 vehicles in the third quarter of 2022. Quarterly deliveries in the third quarter of 2022 increased by just under 35% compared to the second quarter of 2022. Between July and September 2022, deliveries crossed the 340,000 vehicle threshold, setting a new record for the brand.

Number of Tesla cars delivered worldwide from Q1 2016 to Q3 2022 (1,000 units) Data source: Statista.com

In June 2021, Tesla's Model 3 became the first electric vehicle to surpass 1 million units in global sales. The model was the world's best-selling plug-in electric vehicle (EV) model in 2021. However, Chinese manufacturers are closing the gap with the American EV giants. China had the largest fleet of electric vehicles in 2021 - more than three times the number of EVs in the United States - and became the second best-selling model in 2021. BYD also surpassed Tesla in sales for the first time in 2022, selling 183,400 more vehicles than Tesla between January and July 2022. Despite Tesla's financial success during the pandemic and chip shortages, the brand faces increasing international competition.

Tesla vehicles delivered between Q1 2020 and Q3 2022, by main model (1,000 units) Source: Statista.com

In China, the brand ranked second in 2021 behind BYD Auto, partly due to the popularity of BYD's plug-in hybrid electric models. Tesla performed better in Europe, with the Model Y and Model 3 becoming the best-selling models in Europe in the first half of 2022. However, despite the brand's success in the region, it still faces competition from regional automakers in the European national market. In France, the Model 3 ranked fifth among the leading alternative fuel car and light commercial vehicle models, behind European brands such as Dacia and Renault and Asian manufacturer Toyota.