Car sales data from 2022 is now out, and the results are encouraging. According to the Wall Street Journal, automakers sold 807,180 fully electric vehicles in the U.S. last year, or 5.8% of all vehicles sold, up from 3.2% a year earlier. And as E&E News reported (paywalled) 19 percent of new car purchases in California were zero-emission vehicles. This is a big increase from the 12 percent in 2021, according to the same California Energy Commission data, and a positive trajectory to a state-mandated goal of 100% zero-emission vehicle sales by 2035.

But only one EV company dominates. Tesla Motors accounted for 65% of total EV sales last year, down from 72% in 2021, but with no real competition in sight. Ford Motor Co. is a distant number 2 in sales at just 7.6% of the U.S. market, with Hyundai and affiliate Kia combined at third with 7.1% market share. In California, the top vehicles sold overall by a large margin were the Tesla Model 3 followed by Model Y, with combined sales of more than half of all EVs sold in the state. What’s more, Tesla earns large profit margins per vehicle compared to other automakers.

Other legacy automakers appear to be asleep at the wheel (so to speak). They are instead largely committed to making money on gas guzzlers, despite press releases and limited EV releases to the contrary. General Motors, for example, is allocating only 10% of a new $860 billion investment into EV development, according to Eletrek.

But not everyone thinks Tesla’s lead will continue. As Paul Krugman wrote in December after a stock price drop:

[I]t’s hard to explain the huge valuation the market put on Tesla before the drop, or even its current value. After all, to be that valuable, Tesla would have to generate huge profits not just for a few years but in a way that could be expected to continue for many years to come.

He cited the lack of obvious attributes that would give Tesla the kind of market dominance that we see with monopolistic companies like Apple or Google in their sectors.

But what Krugman and others miss is the significant technological advantage Tesla has right now over its competitors, in terms of charging speeds and user friendliness of the vehicles (Krugman admits he’s not a “car guy” and so likely hasn’t test driven EVs from different brands before to understand this difference).

But second, and perhaps most importantly, people like Krugman mistake Tesla as just a car company. But it’s not. It’s a fuel station operator, too, with the most significant build out of EV charging infrastructure in the world. What’s more, compared to the competition (third party charging companies rather than other automakers), Tesla’s chargers are higher-powered and more convenient and reliable.

But wait there’s more, as they say on the game shows. Tesla is also an energy storage company, with 152 percent growth last year in its stationary battery business. And it’s a solar roof company, though that latter business has largely been stalled in recent years. So when you package all of these business lines together, you’ll find a vertically integrated monopoly with a significant head start in essentially all of the climate-fighting tech that will dominate the future.

Yes, Tesla stock may be overvalued. But the perception behind it is quite justified. Other automakers need to catch up, as the 2022 sales data reveal, or they will face an existential threat to their survival — much as humans now do, thanks to their gas-guzzling products.