Tesla Motors (NASDAQ:TSLA) was among companies featured in a new market research report that predicts sales of hybrid cars and electric cars will triple in the next 10 years.
By 2024, global sales of such vehicles will reach nearly $179 billion, boosted by technology advances, says a report released Monday by market tracker IDTechEx.
In the Cambridge, England-based firm’s report, titled “Hybrid and Pure Electric Cars 2014-2024,” IDTechEx says Tesla’s aggressive expansion plans could create a more competitive landscape as it grabs market share from rivals such as Hyundai and Toyota Motor (NYSE:TM).
E-car makers “are now threatened by Tesla planning a mega factory to dwarf all of them put together,” IDTechEx said in a press release.
Still, Tesla stock fell 1.5% to 204.70 on the stock market, near 205.50, a day ahead of its annual shareholders meeting.
In May, Tesla posted Q1 earnings that beat expectations, but it predicted marginal profitability for the current Q2 and shares fell 11%. Tesla stock, though, is up 15% since then.
IDTechEx says electronics in vehicles will become a bigger cost of the vehicle “as they replace hardware and give greater safety and performance.”
The report also offers some optimism for makers of fuel-cell vehicles.
“Launches of production models of fuel cell cars are promised around 2015 by companies such as Hyundai, Toyota, Daimler and Tata Motors, bringing these center stage, to the contempt of competitors that consider them to be a dead end,” IDTechEx said.