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Tesla Faces Increasing Competition in EV Market
Tesla, the world’s largest electric vehicle manufacturer with a market cap of $1.2 trillion, is poised for a crucial year in 2026. Currently, over 80% of Tesla’s sales come from electric vehicles (EVs), predominantly the Model Y and Model 3, which account for more than 90% of EV sales. As competition intensifies, with over a dozen new EV models expected to debut next year—including offerings from Rivian Automotive—Tesla’s market dominance could be challenged.
Potential Growth in Robotaxi Market
Tesla’s stock trades at 15 times sales, significantly higher than Rivian at 3 times sales, largely due to its prospects in the emerging robotaxi market. Analysts estimate this market could be worth between $5 trillion and $10 trillion, with Elon Musk predicting Tesla could produce 2 to 3 million Cybercabs by 2026. Tesla’s vertical integration allows it to scale faster and adapt technologies more efficiently than competitors like Waymo and Uber, enhancing its growth potential.
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