Tomahawk, WI 10/22/2013 (BasicsMedia) – Some of the biggest competitors that Tesla Motors Inc (NASDAQ:TSLA) has to deal with include General Motors, Honda Motor Co, Ford Motor Company, Daimler AG (USA) and Nissan Motor, to mention but a few. Although TSLA’s market cap is only $22.27 billion, the company is recognized globally as one of the leading makers of electrical or alternative vehicles. TSLA has not enjoyed the best year thus far, especially since its very popular Model S car had an accident in which it was consumed by fire, leading to many questions regarding its safety issues.

Model S Has Not Lost Popularity

TSLA has responded quite well and the Model S accident did not lead to the huge backlash that many were expecting. It must be said that this accident was strange and it came at the wrong time just when Model S had been labeled the best car of 2013. A number of new factors have cropped up in the last few days and many are now questioning whether TSLA still enjoys competitive edge over its rivals. Recently, it was announced that General Electric is on the verge of releasing an electric vehicle that will offer serious competition to TSLA’s Model S.

Cadillac’s ELR Can Be Serious Challenger to Model S

Cadillac is set to launch its own electric vehicle, ELR. At the moment, few lovers of TSLA’s Model S car are showing any concern with Cadillac’s ELR, since they believe it is not a worthy competitor. However, I hold a different view. I believe that ELR cannot be ignored for long, just like TSLA cannot make similar mistake with models from its competitors such as Nissan. It has to look closely at Cadillac’s ELR and find a way of making its Model S, or the next model it creates, much better than what the competition is bringing into the electrical vehicles market.

TSLA Has to Focus on Other Markets Apart from the U.S

Currently, the U.S remains TSLA’s largest market and the biggest source of its revenues. Its electric vehicles are not available or produced in mass, and this prohibits it from enjoying better revenue in other parts of the world. Nissan outperforms TSLA on the global scale, although the latter can reverse this trend through aggressive marketing outside the U.S. It has to focus on marketing the safety features of its Model S, and make the most out of the award this car received for being the best in 2013. TSLA has the capacity to make ELR irrelevant for now.

TSLA also needs to find a way of emerging from the shadows of its top executive, Elon Musk, who has revolutionized the electric vehicles industry in the same way as his peers in other sectors. For a long time, the consensus has been that TSLA only relies on the expertise of Elon Musk but has nothing tangible to show. The stock has been dependent on the reputation of Elon Musk, but this has to change now that other credible competitors are rising up from their slumber. TSLA cannot afford to ignore any of its competitors in the U.S and beyond.

Regardless of the competition rising up against TSLA, I believe it is still worth investing in.

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