Tesla’s Market Domination Is Waning

Tesla’s Market Domination Is Waning

Tesla’s EV Market Share Falls Below 50 Percent

Tesla’s electric vehicle market share has slipped once again in the U.S., and it now sits at just a tick below 50 percent for the second quarter. Don’t get me wrong, a single company owning nearly half of all EV sales in the U.S. is still incredibly strong, but it’s certainly not where it once was.



Tesla made up 49.7 percent of all electric vehicle sales for the quarter that ran from April to June. That’s down from 59.3 percent from the same time a year earlier. The Austin, Texas-based EV maker lost ground to electric cars from General Motors, Ford, Hyundai and Kia, according to Cox Automotive. This is the first time Tesla’s market share has been below 50 percent. From the New York Times:

Overall, U.S. electric vehicle sales climbed 11.3 percent from a year earlier, suggesting that consumer demand for the technology remains healthy even if sales are no longer growing at more than 40 percent a year as they were last year. Americans bought or leased more than 330,000 electric cars and light trucks during the quarter, accounting for 8 percent of all new cars sold or leased in the three-month period. A year earlier, electric vehicles accounted for 7.2 percent of the market, Cox said.

Here’s how Tesla lost its edge:

The numbers are the latest sign that Tesla is losing its dominance in a market it in effect created in 2012 when it introduced the Model S sedan. Before that car, very few electric vehicles were sold in the United States.

[…]

A few years ago Tesla didn’t have many competitors, and pretty much no other company could match its cars’ driving range on a full charge or acceleration. But established carmakers have been introducing electric vehicles that can travel 300 miles or more, equaling and sometimes exceeding the capabilities of Tesla’s cars.

There are well over 100 electric models available in the United States, according to a separate report published Tuesday by the Alliance for Automotive Innovation, an industry group. Prices have fallen as the supply and variety of models have increased, making it possible for more people to afford one.

Intense competition “is leading to continued price pressure, helping push E.V. adoption slowly higher,” Stephanie Valdez Streaty, director of industry insights at Cox, said in a statement.

Many consumers are now buying electric cars from established carmakers like BMW or Ford, which have large dealer networks that can provide maintenance and repairs. Tesla sells cars online and many consumers have said that it can be hard to get their cars repaired at the company’s relatively small network of service centers.

Tesla sales have also suffered from an aging lineup. Its best-selling vehicle, the Model Y, went on sale in 2020, making it dated by industry standards. Hyundai and its sister company, Kia, offer more electric models than Tesla, with competitive prices and newer designs.



Last week, Tesla said its global sales fell 4.8 percent, to around 444,000 vehicles in the second quarter. It doesn’t break out its sales by country, but Cox estimates Tesla’s U.S. sales fell about 6.3 percent in the second quarter to 164,000 vehicles.

Tesla CEO Elon Musk’s bizarre shift to the political right wing isn’t helping matters either.

Electric vehicle owners tend to be liberal or left-leaning and electric vehicle sales are highest in states that generally elect Democrats for statewide and federal offices.

In some good news for Tesla, a few automakers like Mercedes-Benz, Polestar, Porsche and Volvo actually lost ground in the second quarter as compared to a year ago.

Still, no matter how you slice this news, it’s becoming more and more apparent that people would rather get other EVs than deal with the baggage owning a Tesla brings with it.

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