While many German auto brands have been touting future EV lineups, they are still a very long way from catching Tesla, and they're falling behind even further as Tesla is building the popular Model Y crossover in Germany, in addition to importing it and the Model 3 sedan from China.

Over the course of the first half of 2023, Tesla delivered nearly 900,000 EVs. Meanwhile, BMW, Mercedes-Benz, Porsche, and Volkswagen automotive groups didn't reach such an epic number combined.

According to Autoblog, the main issue for old-school automakers is software. These brands are all trying to ramp up production and sales of electric cars. Meanwhile, Tesla is still ramping up production and cutting prices. The US EV maker's sales were up significantly in June, which made Tesla's lead over the legacy groups even larger. Auto analyst Matthias Schmidt shared:

“Tesla is still miles ahead of the German carmakers in all the major markets. They’re under pressure to boost volumes to reach the kind of economies of scale needed to make EVs profitable.”

German automakers have proven their worth for years, but the EV shift is bearing down. Not to mention, the companies are also losing ground in China, the biggest automotive and EV market on the planet.

BYD has become a driving force next to Tesla when it comes to EVs and China. The Chinese automaker has been outselling Volkswagen, which is cause for concern among the group's brands making EVs for the Chinese market.

German automakers are still looking at good profits from their ICE car sales and new models. Tesla hasn't brought a new model to market since 2020, but it seems it may not need to rush that. It is likely to bring a refreshed version of the Model 3 to market soon.

As these German brands bring a new generation of EVs to market, the competition could shift. Bloomberg Intelligence analyst Michael Dean concluded:

“The next-generation EV platforms from the Germans could change things. That’s when you’ll see a big push from them, also in China.”