This opens the door for others to combat Tesla. However, the extreme level of growth in the market necessitates more competition. In order for first-movers to be successful, there needs to be substantial interest in the market.

Global EV sales in 2021 are expected to rise 83% over last year, increasing the rate of adoption as more options flood the market. Since 2015, global sales of EVs have grown at an average rate of 50%. The rate of innovation in the EV sector is currently one of the most impressive global efforts I’ve ever seen, as is the rate at which the market is expanding. “The pace at which the technology of the product in question is evolving and the pace at which the market for that product is expanding” are these two critical factors. There will always be some level of unpredictability, dumb luck if you will, though The Harvard Business Review identified two factors that seem to reliably indicate whether or not the first-mover advantage will last. I find this last sentence to be particularly powerful, as every industry is vastly different and allows for alternate outcomes. Much depends on the circumstances in which it is sought.” We have found that the differences in outcome are not random-that first-mover status can confer advantages, but it does not do so categorically. While some well-known first-movers, such as Gillette in safety razors and Sony in personal stereos, have enjoyed considerable success, others, such as Xerox in fax machines and eToys in Internet retailing, have failed. “But for every academic study proving that first-mover advantages exist, there is a study proving they do not. A 2005 publication to The Harvard Business Review discusses the idea of this fallacy. So, the big question is “Why?” Why are none of these transformative first-movers the leaders of their industry? Well, there’s not really one blanket answer. Yet, despite this, they’ve all become the pinnacle of each of their respective markets. What’s one thing all of these different products have in common? None of them were the first to market. Think of email, you’re again most likely going to think of a Google product - this time Gmail. Yet, think web browser and you probably think of Alphabet’s ( GOOG) Google Chrome. It’s easy to see why, as they’re often associated with the market that they’ve created. Oftentimes, the first-mover in a major new market is identified as said market’s future leader. This article will discuss why that may not be such a good thing. While we can sit here and debate that General Motors ( GM ) was actually the first EV manufacturer with its EV1 back in the ’90s, I think we all know that Tesla really earned that title. In an article on Tesla I published earlier this year, I discussed how the brand’s cache is already starting to slip. Instead, I’m here to discuss why Lucid Motors is well-positioned to surpass Tesla due to a rapidly eroding first-mover advantage. I wrote on Lucid’s growth prospects some time ago, so that’s not the focus of today’s article. Of course, one car with limited volume isn’t going to change anything, though that’s not the way things are set to stay. Yet, Tesla ( TSLA ) remains the king of the EV. The vehicle’s industry-leading drivetrain technology, great design, and solid build quality earned it that title. Lucid Motors ( NASDAQ: LCID) only recently began delivering its first vehicles to customers, yet it has already received the laurels of MotorTrend’s 2022 Car of the Year.

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