Zinger Key Points
- Tesla dominates the electric vehicle space in many markets and its Model Y has grown in the SUV space.
- A rival luxury automaker plans to compete with Tesla for electric SUV dominance.
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Electric carmaker Tesla Inc TSLA has received its share of criticism, but also a fair amount of praise from rivals in the auto industry.
Alfa Romeo, which is owned by Stellantis STLA, is the latest brand to admire Tesla, while also seeking to grab market share within the electric SUV sector in its own right.
What Happened: Alfa Romeo is planning to launch its first electric car in 2024 and has grander plans to go all-electric by 2027. The Turin, Italy-based company will be the first of the Stellantis-owned brands to go all-electric under the current plan, according to Electrek.
Alfa Romeo CEO Jean-Philippe Imparto called North America as a critical region for the company in the electric vehicle (EV) industry.
The head of the North American segment for Alfa Romeo had commentary on Tesla and its dominance.
“The fastest-growing premium vehicle in the U.S. — Tesla — is kicking everyone’s ass. We think of ourselves as different from the others. We just don’t want to blend in. We’re not a gray BMW,” Larry Dominique told The Drive.
Related Link: Tesla Q1 Earnings Highlights - Revenue Beat, EPS In-Line, Cybertruck Update, Model Y Bestselling Vehicle
Why It’s Important: Alfa Romeo sold 13,000 cars in the U.S. in 2022. This could complicate its plans to expand in a market where it is a smaller player.
The company also makes smaller-sized vehicles that are preferred in regions like Europe.
According to Dominque, EVs aimed at the North American market will focus on items like technology, interior, extra features, and even the size of cupholders.
“The U.S. will represent 70% of the sales of this new vehicle, so it needs to bode well for the American audience.”
Alfa Romeo also was absent from the North American market for 20 years before returning in 2014.
Tesla has dominated the EV market, but continues to see pressure as more legacy automakers expand their EV offerings.
Electrek reports Tesla had around 62% market share in the U.S. in the first quarter for EVs.
In the first quarter, the Tesla Model Y was the bestselling vehicle in Europe. In the U.S., the Model Y was the bestselling vehicle, excluding pickup trucks.
The Tesla Model Y was the sixth bestselling vehicle model in the U.S. in 2022 with 252,000 units sold.
The other big item will be margins and profitability. As more automakers report quarterly financial results, Tesla maintains its leadership position when it comes to margins and profitability in the EV space. Its rivals are often losing money for each EV they sell.
Tesla’s EV market share could eventually drop under 50%, but the company is likely to be one of the most profitable in the space and a leader in vehicle production.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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