Despite a challenging year for Tesla with a 34% decline in shares, the electric vehicle (EV) industry’s broader struggles and a shift by legacy automakers towards hybrids present an opportunity for Tesla to expand its market share. Industry analysts note the financial difficulties faced by EV startups like Fisker, which is considering bankruptcy, and Rivian’s decision to delay new factory construction to cut costs. These challenges, coupled with major carmakers’ increased focus on hybrid vehicles due to slowing EV sales growth, create a favorable environment for Tesla. The company, once an EV startup facing its own existential crises, now boasts a strong financial position with over $29 billion in cash and minimal debt. Despite facing competition in China and controversies surrounding CEO Elon Musk’s activities on social media, Tesla is seen as a leading player in the Western EV market, well-positioned to capitalize on the current industry dynamics.
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