Tesla’s domination of the global EV sales charts could face some serious competition over the next few years, with industry analysts suggesting their No.1 spot may soon be taken by another brand.

The sometimes controversial EV only company has won many admirers since launching its first Roadster model in 2005, and in the 17 years since has enjoyed impressive sales in most territories, with the Model S, Model X and Model 3 seen to be at the cutting edge of electric vehicles.

But in a week where Elon Musk has admitted that his company’s factories are losing billions, the company now has to contend with a fast approaching rival in its mirrors. Data published by Bloomberg Intelligence has said that German brand Volkswagen is on track to overtake Tesla’s volume by 2024.

Most brands are increasing their product range of electric vehicles as global demand looks likely to double by 2025, and with a $686billion market cap, Tesla have enjoyed the profits of the boom.

Volkswagen is well placed to pass Tesla, it anticipates EVs making up 30 per cent of their overall sales in 2023, and this should rise to 45 per cent by 2025. With the ID Buzz and ID Buzz Cargo in the works, and a hugely anticipated IPO for Porsche, it is exciting times for VW.

“Looking ahead, automakers in Europe, China and elsewhere will continue to challenge Tesla via an impending wave of new models, though profit incentives are limited amid rising battery costs and a lack of scale,' said Michael Dean, senior European automotive industry analyst at Bloomberg Intelligence.

“That may change in 2025-2026 as more brands achieve critical mass on new-generation models with proprietary software.

“There are a number of challenging external factors to consider and bold BEV [battery electric vehicle] ambitions have done little to prevent crisis-level valuation multiples, stoked by recession fears, rising interest rates, supply-chain constraints and inflation.”

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