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Because the EV market grew much faster, e.g. +260% for Germany (from 108k in 2019 to 395k in 2020).

Reason077 5y ago
Sure, but market share should be considered as a percentage of the overall car market, not just electric sales. It's unrealistic to expect that Tesla would continue to dominate the EV market forever. It is realistic to expect that Tesla will become a significant player in car sales globally.
- bildung 5y ago
  > It's unrealistic to expect that Tesla would continue to dominate the EV market forever. It is realistic to expect that Tesla will become a significant player in car sales globally. How could Tesla become a significant player in the overall market without being much more significant in the EV market, which is a small subset of the former?
  - Reason077 5y ago
    EV sales are growing rapidly as a portion of the overall vehicle market, and will continue to do so. Eventually, virtually all vehicle sales will be electric. This will happen faster in some regions than in others.
- ping_pong 5y ago
  What are you saying? How can Tesla be a significant player in car sales globally, when as a percentage of EV car sales, they are decreasing? Think about it for a second and it will come to you. As more cars turn EV, unless Tesla maintains their marketshare, they will become less and less significant. They've lost marketshare in the first year that the major car companies have introduced reasonable EVs. Their 2nd derivative is negative. Tesla is valued at 3X Toyota with having a fraction of the sales. What happens when the EV market becomes fully realized, but Tesla isn't the market leader but a small player. Do they still deserve to be 3X Toyota's market cap?
  - Reason077 5y ago
    > "As more cars turn EV, unless Tesla maintains their marketshare, they will become less and less significant." No, that's not neccessarily true at all. Let's imagine that in 2021, EVs are 2% of car sales globally, and Tesla has 50% of the EV market. That means that Tesla has 1% share of the entire car market. Now imagine that in 2031, EVs are 50% of car sales globally. And Tesla's share of the EV market has "shrunk" to 20%. But that's still 10% of the entire car market. Even assuming no market growth, that's an enormous 10X (1000%!) sales growth for Tesla over 10 years! Even though its share of the EV market has shrunk, Tesla is selling 10X more cars and is a far more significant company in 2031.

Sure, but market share should be considered as a percentage of the overall car market, not just electric sales. It's unrealistic to expect that Tesla would continue to dominate the EV market forever. It is realistic to expect that Tesla will become a significant player in car sales globally.

bildung 5y ago
> It's unrealistic to expect that Tesla would continue to dominate the EV market forever. It is realistic to expect that Tesla will become a significant player in car sales globally. How could Tesla become a significant player in the overall market without being much more significant in the EV market, which is a small subset of the former?
- Reason077 5y ago
  EV sales are growing rapidly as a portion of the overall vehicle market, and will continue to do so. Eventually, virtually all vehicle sales will be electric. This will happen faster in some regions than in others.
ping_pong 5y ago
What are you saying? How can Tesla be a significant player in car sales globally, when as a percentage of EV car sales, they are decreasing? Think about it for a second and it will come to you. As more cars turn EV, unless Tesla maintains their marketshare, they will become less and less significant. They've lost marketshare in the first year that the major car companies have introduced reasonable EVs. Their 2nd derivative is negative. Tesla is valued at 3X Toyota with having a fraction of the sales. What happens when the EV market becomes fully realized, but Tesla isn't the market leader but a small player. Do they still deserve to be 3X Toyota's market cap?
- Reason077 5y ago
  > "As more cars turn EV, unless Tesla maintains their marketshare, they will become less and less significant." No, that's not neccessarily true at all. Let's imagine that in 2021, EVs are 2% of car sales globally, and Tesla has 50% of the EV market. That means that Tesla has 1% share of the entire car market. Now imagine that in 2031, EVs are 50% of car sales globally. And Tesla's share of the EV market has "shrunk" to 20%. But that's still 10% of the entire car market. Even assuming no market growth, that's an enormous 10X (1000%!) sales growth for Tesla over 10 years! Even though its share of the EV market has shrunk, Tesla is selling 10X more cars and is a far more significant company in 2031.