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The future of electric vehicle adoption, in the U.S. but elsewhere too, remains bound up with Tesla even as other automakers bring more and more models to market.

Expand chart
Data: Securing America's Future Energy; Note: The totals represent combined battery electric vehicles and plug-in hybrid electric vehicles sold; Chart: Kerrie Vila/Axios

Why it matters: Tesla's stock got a boost after decent second quarter financials and a renewed pledge to be profitable later this year. But Tesla's long-term health is a question mark as it ramps up production of the Model 3 sedan.

“What happens with the Model 3 is going to be hugely indicative of whether the EV industry is going to be successful."
— Sam Ori, executive director of Energy Policy Institute at University of Chicago

The big picture: EVs can help to fight climate change, quicken the arrival of peak oil demand, and alter the very nature of mobility when paired with autonomous tech.

  • Tesla stands out as the clearest example of a disruptive player with a cool factor that can help transform EVs into something beyond niche status.

Where it stands: Right now, Tesla represents a third of the U.S. market for plug-in vehicles (including full electrics like Tesla's line and plug-in hybrids).

Now the company is ramping up production of its Model 3, a more mass-market product that's key to its long-term future and already the nation's top-selling EV. But Tesla must still show it can consistently keep boosting production.

What they're saying: Analyst Colin McKerracher of Bloomberg New Energy Finance says their forecast shows Tesla selling about 100,000 Model 3s per year starting in 2019, alongside continued sales of their other models.

Then Tesla's planned Model Y arrives in 2020 "and ramps up slowly to hit a similar volume as the Model 3," he notes.

Other new models from other automakers are hitting the market in coming years and will help drive demand, but none are aiming for Tesla's volume, McKerracher said. Overall, their U.S. forecast shows sales of pure electrics from all automakers combined reaching slightly over 676,000 in 2022 and almost 1.6 million in 2025.

"If Tesla were to disappear for some reason, our U.S. EV adoption forecast would definitely be reduced."
— Colin McKerracher

Nonetheless, the technology is far enough along that there's no going back.

“Losing Tesla would have a big impact on the EV market, especially in the short term," said Paul Ruiz, a policy analyst with the group Securing America's Future Energy.

But he adds: “On the other hand, in the medium and long-term, a lot of these automakers have made sizable investments in EVs, and the EV infrastructure nationwide is continuing to grow."

And looking outside the U.S., other players are much more important in China, the world's biggest auto market where officials are strongly pushing EV deployment.

What's next: Tesla CEO Elon Musk said the company could produce as many as 1 million vehicles in 2020.

Go deeper

Updated 2 hours ago - Sports

Swimmer Chase Kalisz first American to win Olympics gold medal

Chase Kalisz of Team United States celebrates after winning the Men's 400m Individual Medley Final on day two of the Tokyo 2020 Olympic Games at Tokyo Aquatics Centre in Tokyo, Japan. Photo: Al Bello/Getty Images

Swimmer Chase Kalisz became on Sunday the first Team USA Olympian to win gold at the Tokyo Games.

The big picture: The Rio 2016 silver medalist's winning time in the men's 400 meters Individual Medley Final was 4 minutes 9.42 seconds. His teammate Jay Litherland took silver .86 seconds later.

California's largest wildfire razes homes as 88 huge blazes burn in U.S.

Firefighters on the scene as dozens of homes burn during the Dixie Fire in the Indian Falls neighborhood of unincorporated Plumas County, California, on July 24. Photo: Josh Edelson/AFP via Getty Images

Flames from California's biggest wildfire were engulfing homes in the state's north overnight — one of 88 large blazes raging in the U.S.

Driving the news: The Dixie Fire, which erupted July 14 near the origin of the deadly 2018 Camp Fire in Butte County, was tearing through the community of Indian Falls in the neighboring Plumas County, per AP.

Golfer Bryson DeChambeau will miss Olympics after testing positive for COVID

Bryson DeChambeau of the United States on the 18th tee during Day Two of the 149th Open at Royal St George’s Golf Club on July 16 in Sandwich, England. Photo: Andrew Redington/Getty Images

Bryson DeChambeau has tested positive for COVID-19 and will miss the Tokyo Olympic Games, USA Golf announced late Saturday.

What he's saying: "I am deeply disappointed not to be able to compete in the Olympics for Team USA," DeChambeau said in a statement.

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