Analyst: Tesla Model 3 To Maintain Top Market Position in 2020

A 2018 Tesla Model 3 electric vehicle is shown in Cardiff, California
Tesla Model 3 is set to leave the production line at Tesla's new Gigafactory 3 in China for the local market. The Model 3 will come equipped with exclusive updates and a price 10,000 lower than its US counterpart. (Photo: REUTERS/Mike Blake)

The electric vehicle revolution continues to rage. Hundreds of companies are throwing their hat into the race in a bid to develop and build the best models. Despite facing hundreds of unique competitors, Tesla will continue to dominate this growing market according to an analyst.

Despite the overwhelming number of companies joining the revolution in an attempt to carve a portion of the market for themselves, Tesla continues to stand its ground. In fact, an analyst recently said that Telsa should be able to maintain its market dominance even until 2020, a time when an influx of new and more powerful electric car models will hit the market.

As of this writing, there is about 17 electric vehicle that is available in the U.S. market. While this is a relatively small number, it is still an impressive increase compared to the market's status in 2018 when it only had 11 models. Market analysts have noted that by 2020 there will be at least 24 all-electric vehicles that buyers in the United States can choose from.

According to Loup Ventures Managing Partner Gene Munster, this growing number of electric vehicles can be divided into two distinct groups. One of which will have a price point above the $70,000 mark. The other group is those that have a rated range below 130 miles.

Two of the most interesting models that fall into these two categories are the Rivian R1S for the first group and the Mini EV, which will fall into the second group. The Rivian R1S has a starting price of around $70,000. On the other hand, the Mini EV has a range of 135 miles. These two vehicles are not considered to be mainstream models due to their price and limited range.

According to Munster, an electric vehicle must not fall into one of these groups in order to be considered as a mainstream model. First, the car must have a price tag of below $40,000. Second, it must have a range of at least 225 miles on a single charge for it to be considered mainstream.

Considering his criteria, Munster believes that only the Tesla Model 3 passes them with flying colors. Thus, he concludes that the Model 3 will hold on to its current dominance well into the next year, maybe even the year after that provided that Tesla makes some necessary upgrades.

Heading into the next year, there are a number of electric cars that are already rated as the "Tesla Killer." Among these are the Chevy Bolt EV and the Jaguar I-PACE.

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