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BUSINESS REPORT: Tesla shares dive as competitors gear up in direct competition

BUSINESS REPORT: Tesla shares dive as competitors gear up in direct competition - image
AP Photo/Chuck Burton

Volvo is taking a direct run at Tesla as deep pocket rivals look to overtake the electric car pioneer.

Tesla shares slid more than seven per cent Thursday morning on the news of poorer than expected delivery numbers owing to a “severe shortfall” on new battery packs, a problem that continues to plague Tesla.

On Thursday, Barclay’s auto analyst commented that Volvo’s Wednesday announcement is “the hard-reality case that Tesla will face intense competition by next decade from legacy [auto makers] expanding their electric options.”
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Tesla may have a lead in battery costs, but the “scale advantages” of multinational car companies likely means Elon Musk’s lead isn’t as sizable as often believed.

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Now there are plans from Toyota, Volkswagen, Audi and Mercedes to join the fray to sell millions of electric vehicles by 2025.

What was once the private preserve of Mr. Musk is now unfolding as mainstream.

Be sure to listen for Michael Levy’s report on Money Talks with Michael Campbell at 8:45 AM on Saturday on CKNW as they further discuss the coming electric car revolution.

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