Tesla’s share of US electric vehicle (EV) sales fell below 50 percent for the first time as the company faced increased competition in its domestic market. According to Cox Automotive, a leading car services and data group, Tesla’s market share in the battery-powered car sector dropped to 49.7 percent in the second quarter, down from 59 percent a year earlier. Stephanie Valdez Streaty, Cox’s insights director, attributed this decline to “continued price pressure” from the growing competition.
The data arrives as Tesla confronts mounting pressure to update its lineup, introduce a mass-market vehicle, and cope with a slowing growth rate in EV demand. While overall EV sales in the US grew by 11.3 percent year-over-year in the April to June quarter, reaching a record high of 330,463 units, this growth rate was significantly lower than the 48.4 percent pace observed during the same period last year, Cox reported. Tesla’s Model Y and Model 3 now face new competitors, including the BMW i5, Cadillac Lyriq, Honda Prologue, and Kia EV9 SUV, according to Cox.
Despite this, Ford maintained its second-place position in the US EV market, buoyed by higher volumes of its Mustang Mach-E SUV and F-150 Lightning truck. The US auto market remains relatively insulated from the influx of cheaper Chinese competition, unlike Europe and other global regions. In May, President Biden’s administration announced plans to quadruple tariffs on Chinese EVs to 100 percent. Christopher Tsai of Tsai Capital, a Tesla investor, said the news was “no surprise” and anticipated Tesla’s market share would continue to decline as new competitors entered the market. “But we also expect Tesla will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030,” he said, citing substantial growth in the market and consumer adoption of electric vehicles.
Earlier this month, Tesla announced it had delivered 443,956 vehicles globally in the three months to June, a 4.7 percent decline from a year ago but above Wall Street estimates. Additionally, Tesla cars were included on a Chinese local government’s list of EVs eligible for purchase by public, party, and government groups for the first time. Despite this, Tesla’s shares fell more than 6 percent in New York on Thursday following reports that the unveiling of its self-driving robotaxis would be delayed. Bloomberg News reported that the presentation, initially scheduled for August, had been postponed to October. Tesla did not respond to a request for comment.
