While Tesla has created themselves their own prosperous piece of the market by manufacturing and selling commercial electric vehicles. However all that effort is now finding a lot of competition as more and more companies try their hand at building and selling electric cars.
Legacy automakers including BMW, Mercedes-Benz and Audi, along with new entrants like Rivian, are either already offering or poised to roll out new plug-in options.
Compiling the issues facing Tesla is the slow adoption among U.S. consumers of emissions-free vehicles, as fuel prices remain low and interest in gasoline-powered sports utility vehicles and pickup trucks remains high.
Tesla "had free reign over the segment for quite a while, really no direct competition," said Jeremy Acevedo, managing director at Edmunds. "While one of the [new] models might be a thorn in their side, in aggregate it does become a bit of an issue."
Still, Tesla’s Model 3 sedan is not only the best-selling electric car in the U.S. – representing 80 percent of the 360,273 plug-in models sold in 2018 – but also the top midsize luxury car.
The line has been plagued, however, by consumer complaints of design and manufacturing issues, problems the company says have been addressed.
Customers will also soon have to pay more for a Tesla once a federal tax credit for electric vehicles is reduced in July and ultimately eliminated in 2020. The Palo Alto, California-based firm is offering a lower price, entry-level Model 3 for $35,000, but it can only be ordered via a physical store or over the phone.
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