shares of Tesla have gone Offroad today following a disappointing earnings report missing on both top and bottom lines companies cost cutting efforts have been attributed to the downward pressure on margins but our reporter Ali garfinkle says the lack of growth in recent times may be down to an overlooked competitor putting the braks on Tesla in biggest EV Market globally Ally over to you hi Josh so Tesla's meteoric rise has always been about the promise of growth but one key lynchpin to that growth might really be slipping away here and that Lynch pin is China now it's hard to overstate the importance of China in the global EV Market in 2022 China accounted for 60% of global EV sales and instead of making progress there Tesla is actually losing ground in China Tesla's market share in China has been on the decline falling from 15% to 10% from 2020 to 2022 and I've sort of identified two key reasons that Tesla's really been lagging in China the first is competition which is subsidized heavily by the Chinese government we do know that on a geopolitical basis China has been very interested in owning the EV market and that means they have really helped bolster competitors like byd which has really specialized in affordable EVS that are made specifically for the China Market the other thing to consider is Tesla's really had some self-inflicted WIS there's really no other way to say it remember China is a key is a key market and it is also a market where people are making less than $10,000 a year for the average Urban worker which means Tesla price points might actually not be ideal so affordability is going to be a key problem for Tesla moving forward in China there's a there's an incredible story in Walter isaacson's book about Elon Musk really being interested in the robo taxi and pushing aside the possibility of pursuing a Tesla that was maybe around $25,000 $30,000 and you have to wonder if that's a decision that especially in light of yesterday's earnings that musk would make again today I wonder a lot about those decisions but but beyond China talk to us about market share in the rest of the world for Tesla it's a good question Julian it may be unexpected but the best jumping off point for having that conversation is actually talking about the US now Tesla has been known for its dominance dominance in the US EV Market but that dominance has been trending downward in 2020 Tesla's grip on the US EV Market was 79% today that number is 58% % now especially amid that sort of dwindling dominance in the US comes from more competition of course but it also makes these Emerging Markets like China that much more important India is another emerging market that we know Elon Musk is incredibly interested in but that said I've had a lot of experts tell me that again because of these affordability concerns Tesla is not necessarily set up to succeed in India either so for Tesla what I would say is right now that race for Global dominance is still far from one we will count on you to keep tracking it for us Ally thank you
