With the adoption of electric vehicles underway, and with more and more veteran automakers dipping their toes in electric cars, EVs like the Tesla Model 3 are bound to see some competition. This would be notable in coming years, with vehicles like Volvo’s Polestar 2 expected to enter the market as early as 2020. Despite this influx of EVs, Tesla (NASDAQ:TSLA) bull and Loup Ventures Managing Partner Gene Munster argues that the Model 3 will likely remain unchallenged.
Currently, there are 17 EVs available in the US market. This is a notable increase from 2018, when there were only 11 that were available for purchase. By next year, there will likely be 24 all-electric cars that buyers could choose from. Munster argues that the majority of these vehicles could be divided into two categories: those that are priced above $70,000 and those that have a rated range below 130 miles. All of these, including the highly-anticipated Rivian R1S (which starts at the ~$70,000 range) or the Mini EV (which has a range of 135 miles), are not mainstream vehicles due to their cost or limited range.
For an EV to be truly mainstream, Munster noted that the vehicle must be priced below $40,000 and have a range above 225 miles per charge. Only five electric cars in the US today meet this criterion: The Tesla Model 3 Standard Range Plus, the Chevy Bolt EV and the Volt, the Hyundai Kona Electric, and the Kia e-Niro. Munster noted that among these options, the Tesla Model 3 is the “clear winner in terms of value,” and this is something that would likely continue to the coming year. Even with the upcoming competition in 2020, the Model 3 will likely be “unchallenged in its EV value proposition,” the analyst wrote.
Tesla’s year-to-date EV market share stands at a dominating 75%. According to Munster, he expects this to decline to about 20-25% over the next ten years. Provided that the US auto sales stabilize at around 18 million per year, and provided that electric car adoption becomes widespread, Tesla’s sales in the country could end up yielding around 3.6-4.5 million vehicles per year. This is notable growth, considering that Tesla is expected to deliver just over 200,000 vehicles in the US this year, as part of its estimated 360,000 global deliveries in 2019.
A key factor in this expected continued dominance is Tesla’s increasingly apparent 7-year headstart in the electric vehicle market. Munster argues that this headstart allows Tesla to enjoy a lead against its competitors in terms of batteries that are more efficient compared to other EV manufacturers, a vertically integrated Supercharger Network that’s easier to use compared to third-party charging stations, and dedicated full self-driving capabilities that are specifically tuned for the company’s vehicle lineup. These factors complete the Tesla ownership ecosystem, and all of these are present in the electric car maker’s entry-level offering, the Model 3 Standard Range Plus.
The narrative of Tesla’s upcoming competition has proven prevalent over the past years, with critics of the company dubbing electric cars such as the Jaguar I-PACE, the Audi e-tron, and the Chevy Bolt EV as potential “Tesla Killers.” As vehicles like the Model 3 continue to prove that Tesla is a moving target, and as companies like Jaguar and Audi exhibit teething problems with the I-PACE and e-tron, the gap between Tesla and its rival automakers continues to become more pronounced.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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