Tesla faces new threats from BMW and Mercedes EV launches

Until recently, BMW and Mercedes had a problem keeping up with Tesla's range. The Tesla Model Y is rated for example at 357 miles. The base model BMW now is rated at 400 miles. The BMW is also a better looking car (my humble opinion).

On the other hand, in the US the Tesla base price is around $45,000 vs $60,000 for the BMW.

BYD on the other hand has an even nicer models at around $40,000. Of course you can't buy that here, because Voldemort is too busy protecting Musk?

Tesla faces new threats from BMW and Mercedes EV launches

Once dominant in electric cars, Tesla is losing ground in both the U.S. and Europe as its rivals gain momentum

By Alex Daniel

Published 21 hours ago

European luxury carmakers are rolling out new electric SUVs just as Tesla faces falling sales and shrinking market share.

BMW and Mercedes-Benz unveiled new models in Munich in recent days, positioning themselves in the fast-growing category led by Tesla’s Model Y.

Tesla faces new threats from BMW and Mercedes EV launches

BMW presented the iX3 while Mercedes launched an electric version of its GLC model. Both feature long driving ranges and AI assistants. Testing showed the iX3 can travel up to 497 miles on a charge while the GLC reaches 457 miles. Tesla’s updated Model Y long-range version, meanwhile, only hits 387 miles.

BMW Chief Executive Oliver Zipse presented the new car on Friday, calling it a “once-in-a-lifetime moment” for his team. “When else do you get to reimagine a brand like BMW from the ground up?” he asked.

The launches come as Tesla is losing ground in its core U.S. market. The market share of its EV sales fell to 38% in August, the lowest level since 2017, according to research firm Cox Automotive.

The company’s share dropped from nearly 49% in June to 42% in July, the sharpest decline in more than two years. Tesla once commanded more than 80% of the U.S. EV market.

Sales of electric cars in the U.S. grew more than 24% in July as buyers rushed to benefit from federal tax credits and discounts. Tesla’s sales increased by 7% in that period, but competitors grew faster. In Europe, Tesla deliveries have declined by about one-third this year.

"I know they're positioning themselves as a robotics, AI company. But when you're a car company, when you don't have new products, your share will start to decline," said Stephanie Valdez Streaty, Cox’s director of industry insights, per Reuters.

"These legacy manufacturers are all benefiting from this sense of urgency, and they're able to have attractive offerings for their vehicles - and it's working," Valdez Streaty added.

Chinese manufacturers are also expanding in Europe with lower-priced SUVs that emphasize digital features. XPeng recently began selling its G6 model in Germany for about $55,800.

Meanwhile, industry giant BYD has overtaken Tesla’s sales in Europe this year, according to data from the European Automobile Manufacturers Association. In July, Tesla’s sales in the region fell 40% year-over-year to 8,837 vehicles, while BYD’s rose 225% to 13,503.

The German automakers are also working with U.S. tech firms to upgrade digital capabilities. BMW is working with Qualcomm, while Mercedes has partnered with Nvidia, and Google and OpenAI are supplying the AI for Mercedes’ virtual assistant.

Analysts say the latest BMW and Mercedes launches mark one of the biggest efforts yet by traditional car makers to compete directly with Tesla on technology as well as performance.

But Steve Fowler, an industry consultant and car reviewer told the Wall Street Journal: “Have I seen anything in the Neue Klasse or the new Mercedes models that will make the Chinese scared? No.”

The iX3 will cost about $80,000 in Germany, according to BMW, compared with Tesla’s Model Y which starts at around $60,000 for the long-range model. Mercedes has not released pricing for its new model.