Reference News Network reported on June 29
The German news television channel website published an article titled “Tesla Finally Lost Its Lead” on June 27, authored by Christina Loner, as follows:
Elon Musk no longer cares about the dominance in the electric vehicle market. Tesla’s current goal is to become a pioneer in autonomous driving. However, its taxi service encountered some initial mistakes at the start, seemingly leading to the fulfillment of Musk’s grand ambitions.
Industry experts believe that the former leader of the electric vehicle sector, Tesla, has now “blended into the crowd.”
A video provided by a passenger shows an autonomous taxi driving into the opposite lane at a crossroads and stopping for about 6 seconds. Passengers also reported issues with speeding.
Frank Schwoebel, a lecturer in automotive economics at the University of Hannover in Germany, said in an interview, “These errors are not just ‘minor irritations’; they could develop into deadly diseases. In my view, this project is not yet mature, especially because its autonomous driving technology is based solely on cameras.” Schwoebel emphasized that vehicles equipped with LiDAR and radar sensors are more expensive but also safer.
Stefan Bracher, director of the Automotive Management Center at the Bügge-Gradbach Economical University of Applied Sciences in Germany, believes that the current determining factor is whether autonomous taxis will lead to accidents. Once accidents occur, Tesla’s purely camera-based autonomous driving technology will be questioned first.
He thinks that although other manufacturers also experienced accidents when launching their autonomous driving systems, Tesla would face stricter scrutiny. After all, compared to major competitors like “New Mobility Company,” Tesla faces higher safety risks, which is well known.
Bracher said, “We consider this a significant risk for Tesla.”
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He also believes that even without an accident, the initial driving errors indicate that Tesla is still two to three years behind “new ways of travel.” He stated, “We must adjust algorithmic errors, and this requires time.”
Tesla is currently lagging in the traditional electric vehicle sector, facing its most severe sales crisis in years. In May, Tesla’s sales in the EU fell by 40%. Globally, Tesla’s sales have also declined, with a total delivery reduction of 13% in the first quarter.
The decline is not solely due to Musk’s political involvement and radical actions. Some customers are waiting for the revamped Model Y. Even so, Bracher still expects Tesla’s sales in Europe to continue declining this year. He believes that “many people still remember Musk’s outrageous behavior,” thus the issue of Tesla’s image decline has not been resolved.
Experts say that Tesla’s models were once cheaper than their competitors, but they are now in a normal competitive and market environment.
Schwab said, “I certainly don’t think Tesla will go bankrupt, but I do believe that Tesla will become one of many car manufacturers.”
According to an Associated Press report on June 25th, Europeans are still not buying Tesla. Data released on the 25th showed that Tesla’s sales had plummeted for the fifth consecutive month in May. This hit investors who hoped that the anger towards Musk had subsided.
Data from the European Automobile Manufacturers Association shows that despite the overall market for electric vehicles expanding significantly, Tesla’s sales in 30 European countries saw a significant drop in May. This poor performance came after Musk promised a “significant rebound” was imminent.
Overall, the sales of battery electric vehicles in Europe increased by 25% compared to a year ago. Germany’s electric vehicle market is particularly strong. Musk’s public support for the far-right, anti-immigrant German Party during the German election has infuriated potential buyers.
In Germany, the total sales of electric vehicles surged by 45%.
Tesla’s sales decline coincided with the company’s critical moment in Austin, Texas, where it was testing its autonomous “robot taxi” service. Musk stated that if the progress is smooth, he expects to roll out this service in several other cities soon, with up to one million self-driving taxis on the road by the end of this year.