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Tesla’s Market Share in US Electric Vehicle Sales Dips Below 50% in Q2
According to a report released by Cox Automotive on July 9, Tesla’s market share in the US electric vehicle market has fallen below 50% in the second quarter of 2024. Despite record sales of battery-powered vehicles in the US, Tesla is facing increased competition from traditional automakers like General Motors, Ford, Hyundai, and Kia.Cox Automotive’s data shows that Tesla’s market share has dropped to 49.7%, down from 59.3% in the same period last year. This marks the first time Tesla’s market share has fallen below 50% in a single quarter. The decline is attributed to the introduction of new electric models by competitors that offer comparable or superior performance and range.
Previously, Tesla had a dominant presence in the US electric vehicle market, but the latest figures indicate that the company is losing its leadership position. The overall US electric vehicle market saw a year-over-year increase of 11.3% in the second quarter, with over 330,000 electric vehicles and light trucks sold or leased.
The rise in competition is driven by the increased supply and variety of electric vehicles, which has led to a decline in prices, making them more accessible to a wider range of consumers. Traditional automakers are now offering electric vehicles with ranges of over 300 miles, challenging Tesla’s dominance in the market.
Stephanie Valdez Streaty, Cox Automotive’s Industry Insights Director, notes that the competitive landscape is putting pressure on prices, contributing to the slow but steady rise in electric vehicle adoption. Customers are increasingly turning to established brands like BMW and Ford, which offer larger dealer networks and better after-sales service.
Tesla’s sales have also been affected by the aging of its models. The Model Y, its best-selling model, has been on the market since 2020 and is starting to show its age. Competitors like Hyundai and Kia are offering more electric models with competitive pricing and innovative designs.
In the past few years, General Motors has also started to introduce new electric vehicles, not just converted gas models, and is collaborating with LG Energy to produce batteries in the US. GM is expected to launch the Chevrolet Equinox electric SUV soon, priced around $35,000.
Tesla’s global sales also declined 4.8% in the second quarter to approximately 444,000 vehicles, with US sales falling 6.3% to 164,000 cars. The company’s CEO, Elon Musk, may have also hurt sales by supporting right-wing politics on social media, as electric vehicle owners tend to lean towards liberal or left-wing ideologies.
Despite the slowdown in growth, the electric vehicle market is still expanding faster than the traditional gasoline-powered vehicle market. The growth of the hybrid electric vehicle market has even outpaced that of pure electric vehicles, as hybrids do not require plugging in and can avoid the inconsistent public charging infrastructure.
However, not all automakers are benefiting equally. Cox Automotive reports that Mercedes-Benz, Polestar, Porsche, and Volvo all saw their electric vehicle sales decline in the second quarter.
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