It certainly doesn’t seem like a bed of roses for Tesla right now. A forecast released by PA Consulting Group, which is a company specialising in management consulting, technology and innovation, has revealed that the American automaker could lose its coveted top spot in the electric vehicle (EV) market real soon.

Based on the findings, the firm said German carmakers such as Daimler, BMW, Volkswagen and even Volvo will pull ahead of Tesla by 2021. The consultancy takes into account each carmaker’s strategy, battery technology, culture, supplier networks, partnerships and financial performance into an overall score.

For the time being, Tesla will remain at the top for 2019, but PA Consulting said by 2021, when rivals flood the market with more models and variations, Elon Musk’s company will fall to seventh place behind Toyota. By then, Daimler will take the lead, followed by BMW, the Renault-Nissan-Mitsubishi alliance and Volkswagen.


Volkswagen I.D. Crozz (left), BMW Concept iX3 (right)

One of the main reasons for this dip is the production issues that Tesla is currently facing with the Model 3. Also cited in the report was the uncertain profit outlook for the California-based company.

PA Consulting’s head of automotive business, Thomas Göttle said “achieving CO2 targets and improving e-mobility performance go hand in hand. For the manufacturers, however, this also involves great need for action in terms of organisation and personnel.”

Last month, the Model 3 production bottleneck saw around 23% of those who placed a pre-order have had their US$1,000 deposit refunded. On top of that, the company had to trim its workforce in order to become profitable – about nine percent of its workforce, which equals to 4,000 personnel, had to be let go. It was reported that the laid-off employees would receive “significant” salary payments and stock in Tesla as compensation.