Tesla has only itself to blame for eroding EV advantage, says auto reviewer DeMuro

Tesla (TSLA) may be losing traction among buyers as the competition for electric vehicles heats up.

Auto reviewer and Cars and Bids auction platform founder Doug DeMuro pointed to Tesla's disappointing pipeline of new vehicle announcements and the lack of updates to its existing lineup. "Tesla hasn't really shown us anything like they used to, where they can just drop something and wow everybody and stay years ahead," DeMuro said to Yahoo! Finance Live.

The competition among automakers for EV buyers has intensified recently, with entries from new companies like Rivian (RIVN) aiming for the pickup and rugged truck market, and industry stalwarts like Ford (F), Volkswagen (VOW3.DE), and General Motors (GM) offering vehicles like the GMC Hummer EV. DeMuro says the competition has eroded Tesla's first-mover advantage, with some of the blame attributed to Tesla's lack of new updates in nearly a decade.

DeMuro pointed to Tesla's pickup as one example. "The cybertruck, which has been touted and vaunted for years, is late," he says. "Rivian is already out with a pickup, General Motors is out with a pickup, Ford has the Lightning."

When Tesla introduced new vehicles, "It was so far ahead of everybody else that you couldn't catch up to Tesla," says DeMuro. "In the ensuing 10 years, people have caught up to Tesla."

Above, Yahoo! Finance's Pras Subramanian and Brian Sozzi spoke to DeMuro. Video Highlights:

0:00 - DeMuro on the competition and Tesla

0:40 - DeMuro on features, driver assist and new models

1:26 - Rivian, Polestar and other EVs

Video Transcript

DOUG DEMURO: When Tesla first came out with the Model S 10 years ago, believe it or not-- it's been over 10 years ago now. It was so far ahead of everybody else that you couldn't catch up to Tesla. There was no possible way to catch up to Tesla.

And in the ensuing 10 years, people have caught up to Tesla. And like you said, there's not-- they haven't come out with a lot of new, exciting models recently. This hasn't-- Tesla hasn't really shown us anything like they used to where they could just drop something and wow everybody and stay years ahead, and it's just not quite like that as much anymore.

And so I worry a little bit that the competitive advantage that Tesla had over the last 10 years has eroded fairly considerably. They no longer have the only electric cars with long range. They no longer have the only driver-assist tech that can really do a great job of driving for you in a lot of situations. You know, the Cybertruck, which has been touted and vaunted for years, is late. I mean, ultimately Rivian is already out with a pickup. General Motors is out with a pickup. Ford has the Lightning.

And so Tesla, it doesn't-- it certainly doesn't have the same level of, you know, first-mover advantage, I think, that it once did. But it's obviously still a very strong brand, and there's still an enormous amount of interest in it.

BRIAN SOZZI: Who do you think Tesla's biggest competitor is, Doug? We always think about-- we're always comparing Tesla to Lucid, but Lucid's not really making any cars. Polestar is making cars, but they don't seem to compare with Tesla. Is it a GM? Is it a Ford that Tesla should be worried about?

DOUG DEMURO: That's a great question. I think it depends on-- it depends on the segment that you're in, and also I think it's just some sort of some brands come out-- I mean, Rivian is a good-- will be a good competitor in the truck space, but they have nothing to compete with the Model 3. Yes, Polestar is competitive with the Model 3, but they have nothing to compete with, you know, SUVs.

Frankly, I think that the legacy brands are trying to figure out EV at a pace that they have never tried before, and I think that you will see those as the big Tesla competitors. I don't view Lucid as that big of a competitor. Like you said, they're not making or selling that many cars. But when you look at the Ford Mustang Mach-E, to me that is a very competitive car with the Model Y, and I think that General Motors and Ford are very committed to an electric-vehicle strategy that is going to make them continually kind of banging at Tesla's door over the next few years.