An analyst report predicts a rocky road for Tesla.

The BofA team’s main concern regarding $Tesla(TSLA.US)$ stock seems to be the potential for huge market share loss. Its logic that Tesla will see it diminish so severely simply due to increasing competition is flawed, though.

Yes, more EV startups such as $Rivian Automotive(RIVN.US)$ are working hard to compete with Tesla. That doesn’t mean that they will take away that much market share from the industry’s leader. Rivian’s electric trucks and SUVs will appeal to a different type of consumer than those purchasing Tesla’s four-door sedans.

The only other EV company offering Tesla any serious competition as far as driver car sales will be $Lucid Group(LCID.US)$ . While Lucid’s sleek vehicles do generate quite a bit of interest, the company has been slow with the rollout of the highly anticipated Lucid Air. It will take time for the vehicle to sell enough to cut into Tesla’s market share. While $Ford Motor(F.US)$ and $Toyota Motor(TM.US)$ are also working to compete with Tesla, dedicated EV aficionados will be drawn toward the companies known for EV innovation. If the Tesla Model Y is as close as it seems to be to ramped up output, that will help Tesla continue its lead in deliveries.

Additionally, EV producers are currently facing an industry landscape where manufacturing constraints pose a constant threat. Tesla proved it could keep pace with demand when it shattered Wall Street expectations with its 2021 Q4 delivery statistics. The company is also making progress on the battery front. It has secured partnerships with companies in the battery minerals spaces and has proven that it has no intentions of slowing down.