(Tech Times) – According to a certain Morgan Stanley analyst known as Adam Jonas, it seems like Elon Musk’s very own Tesla, despite its impressive current worldwide success, might actually see sales in China go all the way to zero by the upcoming year 2030 according to his report to Yahoo Finance.
According to Jonas, although they have been seeing Tesla sales in China peaking “in the middle” of the whole decade then starting to go down, there will be “eventually nothing” after the year 2030. This statement was given to Yahoo Finance’s own “On the Move” of this current week. China is currently quite an important market for Elon Musk’s Tesla elver since Musk actually worked with the country’s own government in order to be able to build out the firm’s very own Changhai Gigafactory.
The country’s EV market potential
The country currently has one of the fastest growing EV markets all around the world but it still saw sales dip a little bit last year as Beijing started to phase out the government subsidies for certain alternative energy vehicles with the whole expectation of actually ending them by the year 2020.
Tesla has already doubled its own sales in China during the very first half of 2020 and currently controls a strong 21% of the entire country’s EV market according to Nikkei Asia’s report back in August. That was all the way up from a previous 6% of the previous year. This is also due to the Chinese EV sales tumbling by about half, according to the given report.
All the way in March, the country actually extended those certain subsidies, and all the way in April actually decided that the given subsidies would actually run all the way until 2022 in a strong effort to be able to prop up EV sales and also reach a certain self-imposed goal of reaching alternative electric vehicles to account for a fifth of entire vehicle sales by the year 2025.
Why will Tesla reach zero in 2030?
The reason why Adam Jonas believes that Tesla sales within China will eventually fall off of the cliff by the year 2030 is due to the country’s own hopes to be able to provide autonomous vehicle systems and the whole impact from the ongoing trade war that is happening between both China and U.S.
Although the reactions of the Chinese with regards to the trade war regarding whether or not EVs that are manufactured inside the country like with Tesla’s Gigafactory Shanghai. Although the final decisions are still unknown, should they decide to completely ban U.S. products, Tesla might not be included due to the fact that they have been manufactured through their Gigafactory Shanghai but this is still all unknown.
Written by Urian Buenconsejo