Tesla’s grip on the EV market is slipping, as competitors make sizeable gains this year
Electric vehicle sales figures have just been released in the US and the electric vehicle market has been growing at a staggering pace.
Sales shot above 300,000 for the first time in the third quarter of this year, as carmakers such as Hyundai/Kia, Nissan, Ford, Mercedes-Benz and Volvo start to bring more to the table.
According to the figures revealed by Cox AutomobileElectric vehicle sales accounted for 7.9% of total industry revenue in the third quarter, up from 6.1% a year ago and 7.2% in the second quarter. The overall sales figures represent a 50% growth compared to the previous year’s quarter.
The news is unlikely to be celebrated at Tesla’s headquarters, as the company has had a huge market share for years. The US market share is still an impressive 50%, but down from 61% in the first quarter of this year. For many Tesla analysts, the Cybertruck can’t come soon enough.
Mercedes-Benz has made huge strides in the US market, with electric vehicles now accounting for 15% of total sales. Both Ford and GM have sold more electric vehicles, but the overall EV sales mix is much lower, accounting for just 4% and 3%, respectively.
Tesla’s dominance will likely only decline further in the coming years
With many major manufacturers rapidly expanding their EV portfolios, Tesla will have to get used to giving up its market share to rivals.
Kia has just put the finishing touches on four new specialty electric cars, set to hit the forecourt over the next three years, while its pricing strategy seems deliberately set to undercut Tesla’s cars – despite recent price cuts.
Also expect sister company Hyundai to hit back, although the Ioniq5 is already selling like hotcakes in the US. The bottom line is that more affordable electric vehicles are coming, and they’re coming fast and thick.
Moreover, Chinese brands such as BYD (one of Tesla’s biggest rivals), Zeekr and Lucid are also gaining popularity and offering attractive packages at a very reasonable price. Even Tesla’s flashy Cybertruck could be heading for a tough time.
Electric pickup maker Rivian delivered 15,564 electric vehicles in the most recent quarter, up 126% from last year, while GM and Ford both plan to ramp up production of their own electrified trucks.
That said, competitors’ sales figures are still relatively small compared to Tesla’s, so using percentage increases can be a bit misleading. Tesla still delivered 435,059 vehicles in the third quarter and plans to reach a volume target of 1.8 million by the end of this year.
For example, Kia stated in its recent EV Day that it aims to reach 1.6 million vehicles by 2026.