Dividends and Tesla loses title as world’s bestselling EV maker to BYD as competition, tax credit expiry hit demand

In the world of business often the first to the market gets most of the spoils. In the industry of car vehicles, the brand Tesla was one of the first EVs made and shortly after they came out, the cars were made better. If you rode in one, you have would enjoy riding in it, but maybe not want to pay the cost of owning one. The governments of the day introduced tax credits to lower the cost of the car and Tesla ended up as the best-selling EV vehicle. But every industry has competitors.

In an article by Paul Harloff and Bernard Condon of Associated Press, Tesla has lost the crown of the world’s largest selling electric-vehicle maker. Some of the reasons sales are down include the owner’s political actions, expiring US tax breaks and overseas competition.

Tesla said it delivered 1.64 million vehicles in 2015, down 9% from a year earlier.

Chinese rival BYD, sold 2.26 million vehicles. (apparently prices of EVs in China are falling and BYD and other Chinese EVs make greater margins and profits by exporting cars). The number one export market worldwide is Mexico and its appeal for low-cost vehicles.

If you own Tesla shares you need to be a big believer in the future lies with driverless robotaxis; energy-storage business and building robots for home and factory. The owner of Tesla Elon Musk is set to sell shares of his rocket company SpaceX.

Mr. Musk said he hopes software updates to Tesla cars will enable hundreds of thousands of Telsa vehicles to operate autonomously with zero human intervention by the end of the year. There are also plans to begin production of an AI-powered Cybercab with no steering wheel or pedals.

Linking to dividend paying companies, for years Tesla dominated at the high end of the EV market which meant the competition of Cadillac, BMW, Mercedes and others brought out EV vehicles. With the adoption and the infrastructure, it has been there is a demand for lower priced EVs and the Chinese manufacturers are sending EVs around the world in record numbers. Every market has the high-end and low-end and a wide variety of companies competing in both sides. When you make your investments, ideally you want some sort of barrier to entry which allows the company to make profits and reward you with dividends.

There are more questions than answers, till the next time – to raising questions.

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