Covering data thru June, 2022 Page 5 2.2 8.1 7.4 8.6 11.3 16.0 2017 2018 2019 2020 2021 YTD '22 Years REVIEW OF FIRST HALF RESULTS January thru June 2022 Registrations Fall Below 7 Year Average Georgia New Retail Light Vehicle Registrations January thru June, 2016 thru 2022 Two outliers stand out on the graph: the first half of 2020 (when the pandemic started) and the first half of this year when supply constraints held back sales. Registrations in the first half of this year exceeded the pandemic lows of 2020, but declined by 12% versus the average total from 2016 thru 2019. Last year’s total exceeded 200,000 units, highest during the seven year period, as demand recovered from the pandemic and supplies were sufficient. Optimistic: Tesla can continue to make gains Tesla has a head start in the electric vehicle market. When many consumers think of BEVs, they think of Tesla. Cybertruck is reportedly being introduced in 2023. The radically styled pickup could provide a boost to Tesla sales Some believe Tesla has a competitive advantage in battery production and technology. Pessimistic: Tesla market share has reached its peak It’s gospel in the industry: new product increases sales. Cyclical model redesigns are key for brands to maintain or grow market share. Tesla has never had a significant redesign and based on typical industry standards, some models are getting stale. Tesla regularly ranks below average in most measures of vehicle quality and dependability. With a steady stream of new BEVs scheduled to hit the market, this could be a competitive disadvantage for Tesla. Tesla is reportedly incurring significant losses related to the opening of new production facilities. Is this a “one-off” cost that will go away when the plants are up and running? Or does it foretell future profitability challenges? KEY FACTS LUXURY CLOSE UP Tesla’s Dramatic Rise...and Fall??? Tesla Percent Share of State Luxury Market 2017 thru 2021, 2022 thru June The graph above shows Tesla’s percent share of the Georgia luxury vehicle market from 2017 thru 2021, and the first half of this year. Tesla share increased from just 2.2% in 2017 to 16.0% during the first six months of this year. Tesla was ranked second in the state luxury market so far this year, behind BMW (16.2% share). Source: AutoCount data from Experian. What’s ahead for Tesla? Tesla market share was up 13.8 points between 2017 and 2022. 182,553 188,317 184,588 183,132 156,383 203,615 163,839 1st half 2016 1st half 2017 1st half 2018 1st half 2019 1st half 2020 1st half 2021 1st half 2022 Data Source: AutoCount data from Experian. Some figures estimated by Auto Outlook. THE GENERATOR 34
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