Projected EV Unit Sales in Millions

One of the greatest potentials in the EV industry is innovation. A significant proportion of the automotive market prefers fuel-based cars because charging an EV battery takes relatively long and may delay a journey when recharging has to be done during a journey. Having longerrange batteries that can charge faster is and have a longer range can make EVs very popular since they are some of the strongest arguments against EVs.

Top three (3) companies

Tesla is the market leader in the American EV market. Even though it does not fit the literal definition of a monopoly, it is a monopolistic competitor in a monopolistically competitive EV market. About 64% of EVs in the US are Tesla. However, in the global market, it is not such a dominant force and has a share of only 18.2% (Liu et al., 2022). This figure was a decrease from 21% in 2021. The 2021 share also decreased from 2020's 23%. Tesla is losing Ground, both in the US and global market. In the US, sales reduced from 79% to 72% to 65% in the years

2019, 2021, and 2022.

The top three companies for this project are selected based on the share of sales in the global market. This is one of the best criteria because other criteria like profitability, revenue, market capitalization, and ROE all depend on sales. Sales is one of the greatest determinants of business success. This criterion places Tesla, BYD, and SAIC as the market leaders. Tesla dominates the American market, while BYD and SAIC dominate the Chinese market. While Tesla has never produced a gas car at any point, BYD started with internal combustion engine cars but slowly shifted to EVs until March 2022, when it discontinued its production of ECEs.

SAIC on the other hand majorly produces gas cars but has a substantive share in the EV market. It is a large company with several brands, some of which are exclusive to the company and some of which are produced through ventures. The brands that are exclusively produced by SAIC include Roewe, Maxus, MG, and Yuejin (Deng & Wang, 2019). SAIC’s brands produced through joint venture companies are sold under marques, including Baojun, Buick, Cadillac, Chevrolet, Škoda, Audi, Volkswagen, Iveco, and Wuling.

Tesla

Tesla is an American Multinational clean energy and automotive company. The company manufactures electric vehicles (cars and trucks), grid-scale energy storage, batteries, and solar panels. Tesla is the most valuable automotive company, with a brand value of USD 75.9 billion (Carlier, 2022), and is one of the most valuable companies in the world. According to its CEO, Elon Musk, the company's primary mission is to help expedite the shift to sustainable energy and transport through electric vehicles and solar power. Tesla's Model 3 is the company's bestselling model and also the bestselling EV model in the world. It is also the first EV model to surpass one million units in sales when 1.31 million model Y cars were sold in 2022. Tesla's market capitalization reached USD 1 trillion, which made it the 6th American company to do so in the country's history. Tesla built its first factory outside the US in 2019 in Shanghai, China. Elon Musk was planning to double the firm's capacity. However, he was barred by the Chinese government due to fears that SpaceX, another company headed by Musk, through its subdivision, Starlink, could assist militaries of China's enemies with communication services. Tesla also has plans to build another giga factory in Monterrey, Mexico. Tesla’s 2022 revenue was USD 80 billion.

SAIC

SAIC (formerly Shanghai Automotive Industry Corporation) is a state-owned automotive manufacturer with headquarters in Anting, Shanghai, China. It is the largest of the four Chinese state-owned automotive companies. The other three are; FAW Group, Changan Automobile, and Dongfeng Motor Corporation. SAIC sold 5.32 million cars in 2022, which was the highest of any

Chinese manufacturer (Deng & Wang, 2019). It ranks 60th among the fortune global 100. The company’s EVs are sold under brand names like Wuling, Maxus, Baojun, Feifin, and Roewe. The 2021 revenue was USD 115,602,851,918.40.

BYD

BYD (Build Your Dream) is also a Chinese MNC, though not state-owned. It is headquartered in Shenzhen, Guangdong, China. The company's two main subsidiaries are BYD auto and BYD electronics. The company manufactures trucks, electric bicycles, forklifts, solar panels, buses, automobiles, and rechargeable batteries. As of 2023, 7.7% of the company is owned by Berkshire Hathaway (Clausen & Olteanu, 2021). The company’s total assets are worth USD 42.95 billion (2021). In the same year, the company’s revenue was USD 30.68 billion, and its net income of USD 440 million.

Reflection

While doing the assignment, I learned that even though the use of EVs offers an incredible solution to the emission problem, it also creates its own problem. Firstly, the materials used to make the batteries, like Lithium ion, Manganese Nickel Cobalt, and Nickel Metal hydride, are non-renewable and scarce, and their extraction also degrades the environment. However, environmentalists argue that even though this is also a serious concern, climate change is a greater problem. But still, EVs are not the ultimate solution to carbon dioxide emissions. About 2400kg to 16000kg of carbon dioxide is emitted during the manufacturing of EV batteries. This is that EVs just reduce emission but does not eliminate it. I also learned that whether a company diversifies or specializes, all that matters is effective management and product quality.

Tesla prefers specializing, while BYD and SAIC prefer diversification, but they are all doing well. Lastly, I learned that all companies should positively respond to market trends to remain relevant and profitable. SAIC and BYD started as ICE car manufacturers, but as the need for non-emitting arose, they started manufacturing EVs. The third lesson is relevant in the workplace since I now know how important it is to adapt to environmental needs. Just the way companies need to address changing customer needs in the product market, employees also need to adapt to changes in the job market. One can adapt through actions like learning new skills.

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