Tesla plays blame game amidst EV slowdown. Here’s what Musk has to say

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The electric vehicle (EV) market, once a high-speed lane of growth, is encountering a slowdown. While the industry still sees positive sales, the meteoric rise of previous years has cooled amid economic pressures. Even Tesla, the undisputed pioneer of the EV space, has not been immune to this trend.

Despite aggressive price cuts, Tesla's global deliveries declined by 6.6 per cent in the first half of 2024 compared to the same period last year. Interestingly, Elon Musk, CEO, Tesla has attributed this slowdown to the inability of other carmakers to produce "compelling EVs.", a report by Drive stated.

While Tesla's own sales have dipped, Musk insists that the broader EV market is suffering from a "hangover" caused by weak offerings from competitors. "We saw at launch an adoption acceleration of EVs, and then a bit of a hangover as others struggle to make compelling EVs," Musk told investors and media.

He acknowledged that rival companies have significantly discounted their EVs, impacting Tesla's sales. However, he remains optimistic about the long-term prospects for electric vehicles.

Tesla doubles down on autonomy

As the EV market cools, some automakers are shifting their focus to hybrid vehicles. This strategy is driven by increasing consumer interest in these models, which offer a balance between fuel efficiency and performance. Tesla, however, remains steadfast in its commitment to all-electric vehicles.

To counter the slowdown in EV sales, Tesla is doubling down on its autonomous driving technology. Musk believes that Full Self-Driving (FSD) software will be a major revenue driver for the company. While currently in a supervised mode, Musk is confident that Tesla can achieve fully autonomous driving by the end of the year.

As the EV market evolves, Tesla's ability to maintain its leadership position will depend on its capacity to innovate, compete on price, and successfully deliver on its autonomous driving ambitions. The coming months will be crucial in determining the company's next chapter.