Tesla has the explicit aim of being a technology company as much as a vehicle builder. As such, it’s a disrupter, bringing radical innovation to the sector and a serious challenge to established players. Enjoying high vertical integration of supplies, cutting-edge efficiency and the deep pockets of Elon Musk, it’s riding the wave of automotive change.

While other EV makers plead for subsidies, Musk says he would welcome their withdrawal in the US. He can afford to make less profit on each car if it forces rivals out of the market. Similarly, Tesla is engaged in a ferocious price war with BYD in China, seemingly happy to sacrifice margins for market share. In January 2024, its Model Y became the bestselling BEV ever, as well as the world's bestselling car of any fuel source.

Yet Tesla’s had some problems. Over the whole of 2024, its output actually reduced slightly for the first time since 2011. Meanwhile, production of its new Cybertruck has been halted more than once. And its Cybercab – a driverless taxi that will cost under $30,000 (£24k) and enable Tesla to enter the ride-sharing business – is scheduled for 2026, but the date keeps slipping. In April 2024, the company laid off 10% of its workers, proving that in today’s turbulent car industry, even the frontrunners can encounter headwinds. 2025 could see its fortunes boosted by the launch of the revised Tesla Model Y, as well as the rumoured launch of the smaller, cheaper Model Q.

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