Tesla’s Share of US Electric Vehicle Market Slipped to a New Low in Q3

0


Key Takeaways

  • Tesla’s share of the U.S. electric vehicle market fell to 50% in the third quarter, down from nearly 65% for the full year in 2022.
  • Tesla, which has cut prices on popular models, saw its vehicle sales rise 19.5% in Q3, but it wasn’t enough to sustain market share as competition grows.
  • New competitors, including both EV startups and traditional automakers such as Hyundai, BMW and Mercedes that have released their own electric models, have gained at Tesla’s expense.
  • A record 313,000 battery electric vehicles were sold in the U.S. in the third quarter, and full-year sales are likely to surpass 1 million for the first time ever.

Tesla’s (TSLA) dominance of the U.S. electric vehicle market continues to slip as new competitors, including both EV startups and legacy automakers, gain market share.

Cox Automotive’s Electric Vehicle Sales Report for the third quarter, released Thursday, said that Tesla’s market share fell to 50%, the lowest on record. Tesla’s share of the fast-growing EV market is down from almost 65% for the full year in 2022.

Tesla has cut prices on popular models in an effort to entice more shoppers, which helped the company achieve a 19.5% increase in vehicle sales in the third quarter compared with a year earlier. But those kinds of sales gains aren’t enough for Tesla to sustain share in an increasingly competitive and fast-growing EV market.

Overall U.S. sales of battery electric vehicles hit a record of 313,000 in the third quarter, up 50% from the year-ago period. Cox Automotive expects that full-year electric sales will hit 1 million for the first time in 2023, a landmark that will likely be achieved in November.

New competitors, including both EV startups and traditional automakers like Hyundai, BMW and Mercedes that have released their own electric models, have gained at Tesla’s expense.

Nascent EV maker Rivian Automotive’s (RIVN) market share increased to 5% in the third quarter after sales more than doubled from a year ago. Rivian was the fifth-biggest EV seller in the U.S. by market share in the third quarter, behind Tesla, Ford (F), Hyundai and Chevrolet.

Gains were even more impressive for some legacy carmakers that have entered the EV market. Hyundai’s EV sales in the U.S. more than tripled in the third quarter, giving the South Korean automaker a 6.3% share of the market. BMW’s (BMWYY) market share rose to 4.2% after its EV sales tripled in the third quarter from a year earlier, while Mercedes’ (MBGYY) market share hit 3.3% as sales nearly quadrupled.

Electric vehicle sales represented 7.9% of total U.S. auto industry sales in the third quarter, versus 6.1% a year earlier. With new competitors entering the market and EV models proliferating, the number of EV products available to consumers will double by 2027, Cox Automotive said in the report.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *