BMW CEO Expresses Doubts For Tesla's Further Growth Rate

How could they not grow quickly in a booming market?

BMW CEO Oliver Zipse noted in one of the recent conferences that the automotive industry is moving into EVs “big time” and that it won’t be easy for Tesla to maintain its growth rate.

Let’s recall that Tesla sold almost 500,000 electric cars in 2020 (up 36% year-over-year) and set a general target to grow at 50% a year (on average), more than that in 2021.

BMW, on the other hand, sold 192,646 plug-in cars (mostly plug-in hybrids), which is (31.8% increase year-over-year) and 8.3% of the total volume of 2.32 million (down 8.4%).

Here is the quote:

“It won’t be easy for Tesla to continue at that speed because the rest of the industry is moving ahead big time,” Zipse said during the DLD All Stars tech conference.

In general, we must agree that no one is able to maintain a very high growth rate in a mature/maturing market, especially when competition increases. However, we are not even close to that point right now.

Tesla, with new manufacturing plants and tremendous progress in EV manufacturing technology, is – in our opinion – supposed to grow very quickly. Another thing is that BEV share in the overall market is low.

Sure, because of the scale of other manufacturers and their investments, Tesla might not be the largest player in terms of volume, but the growth rate should not be a problem for virtually anyone with a decent EV product on the market.

We will closely follow Tesla, BMW and other manufacturers’ sales to see whether the growth of any of the heavily engaged manufacturers will be lower than 50% a year in a booming market over the next several years.


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