How Tesla Can Win the EV War Without Selling the Most Vehicles

Tesla EV Market Strategy, Profit Share, Electric Vehicle Industry, BYD Competition, Full Self-Driving Software, Tesla's Long-Term Success
Explore how Tesla can dominate the electric vehicle market without having the highest unit sales. Analyst George Gianarikas suggests focusing on profit share through strategic pricing and innovative software offerings.


The electric vehicle (EV) market is heating up, with Chinese automaker BYD poised to overtake Tesla as the top-selling EV company in the world. However, according to Wall Street analyst George Gianarikas, Tesla doesn’t need to sell the most vehicles to come out on top in the EV war. In this article, we’ll explore Gianarikas’ perspective and delve into Tesla’s strategy for long-term success in the EV market.

Tesla’s Position in the EV Market

Gianarikas draws a parallel between Tesla’s position in the EV market and Apple’s dominance in the smartphone industry. Just as Apple was the first to market with a true smartphone and initially enjoyed 100% market share, Tesla pioneered the EV industry. Despite facing increasing competition from Asian automakers, Apple still dominates the smartphone market in terms of profit share. Gianarikas believes Tesla can achieve a similar outcome in the EV market.

Profit Share vs. Unit Sales

According to Gianarikas, Tesla’s key focus should be on the profit share battle rather than simply outselling its competitors in terms of unit sales. While Tesla may eventually be overtaken in terms of sheer numbers, it can still emerge victorious by leveraging its strengths to improve profit margins. Gianarikas has a positive outlook on Tesla, with a buy rating and a $267 price target for the stock.

Tesla’s Strategy for Profit Margins

Tesla is expected to deliver around 1.82 million vehicles in 2023, representing a significant increase from the previous year. However, the company has been slashing prices throughout the year to achieve this milestone, which has impacted its profit margins. In Q3 of this year, Tesla’s profit margins stood at 17.9%, compared to 25.1% the previous year.

To counter this, Gianarikas highlights Tesla’s plan to sell a substantial amount of full self-driving (FSD) software to existing vehicle owners. He likens this strategy to how Apple sells services and believes that through FSD software and vertical integration, Tesla can achieve above-average gross margins and profits for its EVs compared to other players in the market.

Tesla’s Long-Term Success in the EV Market

While BYD may soon claim the title of the top-selling EV company, Tesla’s emphasis on profit share and its ability to leverage its strengths could lead to its long-term success in the EV market. Tesla’s relentless focus on innovation, technological advancements, and vertical integration sets it apart from its competitors. By continuously pushing the boundaries of what’s possible in the EV industry, Tesla is positioning itself for sustained growth and profitability.


In conclusion, Tesla doesn’t necessarily need to sell the most vehicles to win the EV war. By prioritizing profit share and leveraging its strengths, Tesla can secure a dominant position in the market. As the EV industry continues to evolve, Tesla’s commitment to innovation and its strategic focus on profitability will be vital in maintaining its leadership position. Investors and EV enthusiasts alike will be watching closely to see how Tesla navigates the ever-changing landscape of the EV market.

Additional Information: Tesla’s recent investments in battery technology and its Gigafactories around the world further solidify its position as a frontrunner in the EV market. The company’s commitment to sustainability and clean energy aligns with global trends and positions Tesla as a leader in the transition to a more environmentally friendly transportation sector.

Disclaimer: The information presented in this article is based on the analysis and opinions of the author. It should not be considered as financial or investment advice. Always do your own research before making any investment decisions.

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