Tesla's Dominance in US Electric Vehicle Market Weakening but Still Prominent
TapTechNews July 14th news, Tesla's dominant position in the electric vehicle market is weakening, but the chief executive Elon Musk (Elon Musk) seems to not need to panic for now.
According to CoxAutomotive data, In the second quarter of this year, Tesla's market share in the US electric vehicle market fell below 50% for the first time to 49.7%.
Admittedly, Tesla is currently facing many challenges, but the decline in market share actually does not indicate that the company's future is at stake. Instead, it indicates that Tesla is growing into a more traditional car company, which is exactly the direction that Tesla has been striving for, and also marks that the market segment it pioneered is maturing.
Although Tesla's sales are declining and its electric vehicle market share has fallen below 50% for the first time, the overall competitive landscape in the electric vehicle field is intensifying, Stephanie Valdez-Streaty, director of industry insights at CoxAutomotive, said in the company's electric vehicle sales report. Intense competition has brought continuous price pressure and gradually promoted the increase of electric vehicle penetration rate.
As more and more companies launch their own electric vehicles, Tesla's monopoly position in the US electric vehicle market has weakened in recent years. Data from Experian shows that last year Tesla accounted for about 55% of the US electric vehicle market, and this number was 65.4% in 2022 and as high as 79.4% in 2020.
Despite the decline in market share, it should be remembered that Tesla previously had hardly any competition in the US market.
Tesla's success has spurred traditional automakers (such as GM, Ford, and Volkswagen) to catch up. In the past few years, the US market has witnessed an endless stream of Tesla killers models. As a result, today's electric vehicle consumers have more choices. According to CoxAutomotive data, only in the second quarter, BMW, Cadillac, Honda, and Kia have all launched new models. Many of these models have eroded Tesla's market share just by their existence on the market.
According to CoxAutomotive data, new models such as Chevrolet's new electric Blazer, Equinox, and Silverado have added 21,000 electric vehicles to the market and weakened Tesla's dominant position.
Although the market share has declined and sales have slowed, Tesla is still the most dominant electric vehicle company in existence.
According to CoxAutomotive data, as of June, Tesla is still the champion in electric vehicle sales this year, delivering 304,451 vehicles. There is a huge gap between Tesla and Ford, which is ranked second and has sold 44,180 electric vehicles so far this year.
In conclusion, even though Tesla's share has decreased, the overall growth of the electric vehicle market (although the speed has slowed) also proves that Elon Musk's bet on electric vehicles more than a decade ago was correct. The electric vehicle market is still growing in terms of volume and share, just at a slower pace than when this market segment just started in 2020, and Tesla can still benefit from this growth.