How Competition Kills Tesla Inc (NASDAQ:TSLA) — Forget ChinaAuthor: Mvusi NgubaneLast Updated: April 1, 2020It is easy to recognize why Tesla Inc and China will work well together. Road transportation is one of China’s fastest growing industries. The country also houses a growing taste for things foreign, opulent and futuristic. We can even add the government’s effort to dramatically reduce carbon emissions by phasing out cars powered by internal combustion engines. All of this puts China’s car market right up Tesla’s alley. So, investors should soon be rolling in profits, right?We could all be kidding ourselves about Tesla’s success in the electric vehicle market. There are a few interesting facts to consider. Firstly, Tesla Inc will have plowed through over $10 billion dollars by the time 2017 is up. For all of that, there won’t be a single dollar in profits to show for it.Secondly, as Jim Chanos pointed out last week, the company promised it would be profitable by now. When 2017 came along, investors were told to wait for 2020.It is hard to wrap our heads around how high the company’s share price has climbed, too. As much as 68 percent has been gained this year. This far outdoes the 12 percent climb of the S&P 500. All of this for a corporation which offers no profits and more debt in a rapidly intensifying market.This brings to us to our third point: competition. The number of companies that are lining up to compete with Tesla Inc (NASDAQ:TSLA) is only expanding. The electric car market is still in its infancy and there is no telling who will be at the top in ten years’ time.Tesla Inc Model X charging – Tesla NASDAQ:TSLAWhat we do know is that more auto corporation are jumping onto the electric vehicle market. Many of these corporations have actual money in their pockets, can easily justify more investment, and can handle mass vehicle production with years of experience, too.Note: We’re not Tesla Inc. bears, we are Tesla Inc. realists (NASDAQ:TSLA)Tesla has without a doubt shone a spotlight on the electric car market. We can also admit that the company has a mutli-billion dollar head-start over anyone getting into the game right now. Heck, we can even highlight the company’s vast network of Supercharger stations and the assurances that those stations give to customers and investors. Tesla clearly means business, and has successfully advocated against restrictive regulations in order to see to its future success.Read: Maybe Tesla Inc. Is not such a S3Xy investment?The keyword there was future success, and it is a future that could never come to fruition. A whole series of events could take place and eliminate Tesla Inc from the top spot. Competition could even eclipse the Elon Musk car business.We count upwards of 40 new auto companies that plan to join the electric car maker by 2022. They include Jaguar Land Rover, Volkswagen, Daimler and Volvo, just to name a few. What is interesting to note, though, is that not all of them have a real interest in entering the electric car market. The transition to electric cars is mostly led by Tesla Inc and government regulations.Tesla does its part by raking in the market with ideas of futurism and reduced carbon emissions. We could do a whole shpeel about how increased lithium mining and the mass manufacturing of EV batteries makes these road vehicles more hazardous than most people believe. However, in the interest of staying on point, we will direct you to this link here and move right along.Tesla Inc (NASDAQ:TSLA) and governmentsTesla Inc. (NASDAQ:TSLA) flashes the lights, proving that electric cars not only match their ICE-powered rivals, but outdo them in many other cool aspects as well. Buyers are shown affordable Teslas, luxury Teslas, Teslas with falcon-wing doors, and every Tesla sold is capable of driving itself, is safer than the competition, and won’t kill the planet. How can you resist?Governments further the agendas of Tesla by slapping strict regulations in the form car emission caps and incentives for people to buy electric cars. China takes the lead in this by promising to phase out gas-powered cars all together. This is similar to the pledges made by the U.K. and France. China is more significant, though, because it is the among greatest consumers of cars in the world, and a economic superpower.Its transition to an electric vehicle-intense region will have other nations following suit. However, around the world, there are already numerous EV-related tax incentives for buyers and tax consequences for automakers that do not produce electric cars.Competition kills Tesla Inc, forget ChinaAlright then. The future of road transportation will have a lot electric cars. We concede. Although that does not mean Tesla Inc (NASDAQ:TSLA) will win the market. In the US and Canada, the number of fully electric vehicle options to buy will be 47 by 2022. This is according to figures compiled by Bloomberg.The number climbs up to 80 EV options from 61 today in China. The E.U. will house 58 EV choices by 2022. That same year will have 136 different electric cars on sale. The majority of those will be made by corporations that actually profits from their business, spend money on advertising, and can easily mass produce cars while Tesla is finding its feet.Let us know how you feel about Tesla Inc. in the comments below. Is the corporation a great investment or are investors fooling themselves?