Top Kelly Blue Book Executive On Why Tesla's Market Share Will Plummet Next 5 Years

Top Kelly Blue Book Executive On Why Tesla's Market Share Will Plummet Next 5 Years

Michelle Krebs, senior director of automotive relations at Cox Automotive, the parent company of businesses including Kelley Blue Book, Xtime, Autotrader.com, and Manheim believes that Tesla Inc’s TSLA more than 69.9% market share is going to drop significantly.

What happened: Benzinga had the chance to catch up with Krebs last week as the company prepared to release its second-quarter financial results. It was reported that Tesla's revenue came in at $16.93 billion, compared to the $17.1 billion expected, while earnings per share came in at $2.27, above the $1.81 projections.

“We anticipate that over time Tesla is the leader, but there’s a lot of competition coming on, and that they will drop their market share,” Krebs said. “They now have [around] 70% of the market right now — I’ve seen estimates from Bank of America that show they’ll be down to 11% in the next five years because there’s so much competition coming,” she added.

Tesla sold an estimated 302,000 electric vehicles in the United States in 2021, with the next best-selling EV being the Ford Motor Company F Mustang Mach-E, with 27,140 units sold, according to car and driver

Also Read: Jim Cramer Says Ford Stock Could Jump To $15 On Earnings If Tesla Is Mentioned: Here's Why

Krebs also noted that Tesla doesn’t have many new products coming, with CEO Elon Musk recently confirming the Cybertruck's summer 2023 release date, versus Ford's F-150 Lightning, which is already on the market.

Why it matters: The average price of an electric vehicle is around $60,000 — those prices could come down to a more attractive price to consumers as more players enter the electric vehicle market, producing more vehicles while driving the price down.

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