Tesla has a large enough lead to continue to dominate the US EV market share, but it may need to focus on a cheaper model soon.

tesla leads ev market share, but rivals' cheaper models are gaining

At some point in the future, and likely sooner rather than later, Tesla will either have to pull on some more of its many demand levers, or bring more affordable electric cars to market. This is, if Tesla’s goal is to remain the dominating force in the US EV market. Tesla still leads the segment in market share by a wide margin, but automakers are catching up.

Not long ago, Tesla and CEO Elon Musk mentioned the potential for a cheaper and more compact model coming to market soon. However, the idea was short-lived, and it became clear that the focus now is on the company’s robot, Full Self-Driving capability, and getting the Cybertruck to market, among many other goals.

That said, more recently, Tesla did present information about a future platform that will be much cheaper to produce than the Model 3 sedan and Model Y SUV. Tesla’s EVs built on this future platform will be more affordable, which should help the US EV maker regain some ground that it’s currently losing with regard to US market share in the segment.

Based on a recent study by S&P Global Mobility, which was shared by Teslarati, Tesla has a 65 percent share of the EV market on our shores. While that’s an impressive number no matter how you look at it, just two years ago, it was 79 percent.

Looking at the chart below reveals that the main reason people are likely to choose rivals’ EVs over Tesla’s models is the price. In fact, S&P Global Mobility went so far as to share in its report that Tesla’s loss of US market share can be primarily attributed to the arrival of competing EVs that cost less than $50,000. Tesla currently competes in the “luxury” EV space and doesn’t offer “cheap” electric cars.

tesla leads ev market share, but rivals' cheaper models are gaining

Teslarati goes on to add that from January to September of 2022, well over 50 percent of the entire EV market was held by Tesla’s Model 3 and Model Y, the brand’s least expensive options. About 525,000 EVs were registered in the States over the course of the first three quarters, and some 340,000 of those vehicles were produced by Tesla.

Tesla’s four models are all among the top five electric vehicles sold in the US over the first three quarters of 2022. Interestingly, the rest of the EVs on the list are some of the cheapest options available. So, essentially, EV shoppers who aren’t splurging for a Tesla are choosing an affordable option, such as the Chevy Bolt, Nissan Leaf, Volkswagen ID.4, or one of Kia or Hyundai’s well-priced Tesla rivals.

Tesla will almost certainly retain an impressive EV market share for some time to come. However, as more affordable options come to market that are also compelling in so many ways, the US “luxury” EV maker may have to strongly consider producing EVs for the masses.

Source: Teslarati

Keyword: Tesla Leads EV Market Share, But Rivals' Cheaper Models Are Gaining

CAR'S NEWS RELATED

Tesla’s Elon Musk prevails in $420 ‘funding secured’ Tweet trial

Tesla CEO Elon Musk was found not liable in a case where investors sought to recover losses after he Tweeted that he had secured the necessary funding to take the automaker’s stock private in 2018. Investors sued Musk, Tesla, and the company’s board, claiming that the CEO’s communications on ...

View more: Tesla’s Elon Musk prevails in $420 ‘funding secured’ Tweet trial

Elon Musk found not guilty in the Tesla 420 take-private case

A jury has found Elon Musk not guilty in the case of his tweet about taking Tesla private at $420 a share. 5 years later, this single tweet is still haunting the Tesla CEO. For those who don’t remember the situation, back in 2018, Musk briefly considered trying to ...

View more: Elon Musk found not guilty in the Tesla 420 take-private case

U.S. jury finds Tesla and Musk not liable in case over take-private tweet

Feb 3 (Reuters) – A U.S. jury on Friday found Tesla Inc (TSLA.O) and CEO Elon Musk not liable in a securities fraud case over a tweet that he had lined up funding to take the electric car company private. Plaintiffs have claimed billions in damages and the decision ...

View more: U.S. jury finds Tesla and Musk not liable in case over take-private tweet

The 2022 Tesla Model 3 Has 3 Problems, Says U.S. News

Does Tesla Model 3 have issues? The Tesla Model 3’s infotainment system can be ‘distracting’ Can you fit 5 adults in a Tesla Model 3? Is a Tesla Model 3 a smooth ride? Despite its issues, the 2022 Tesla Model 3 is a fine example of a well-executed EV ...

View more: The 2022 Tesla Model 3 Has 3 Problems, Says U.S. News

Podcast: Tesla Cybertruck Beta, Ford joins EV price war, Equinox EV, and more

This week on the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. This week, we discuss the Tesla Cybertruck Beta, Ford joining the EV price war, the Equinox EV, and more. Sponsored by SAE International: Join the global mobility community in Detroit from ...

View more: Podcast: Tesla Cybertruck Beta, Ford joins EV price war, Equinox EV, and more

US Treasury Makes More Tesla, Ford, GM EVs Eligible For Tax Credits

The 5-seat Tesla Model Y, Cadillac Lyriq, Ford Mustang Mach-E and VW ID.4 RWD are now considered SUVs and have an $80,000 MSRP limit.

View more: US Treasury Makes More Tesla, Ford, GM EVs Eligible For Tax Credits

BMW chooses Pirelli’s EV-geared P Zero tire for i4 M50’s high-performance powertrain

BMW and Pirelli will outfit the German automaker’s i4 M50 all-electric vehicle with the Italian tyre manufacturer’s P Zero Elect rubber, which is geared for high-performance electric powertrains. Putting that perfect set of fresh rubber tires on your favorite car doesn’t just make it handle like it’s on rails ...

View more: BMW chooses Pirelli’s EV-geared P Zero tire for i4 M50’s high-performance powertrain

Tesla stock climbs on tax credit inclusion, continuing stratospheric rise in 2023

Tesla stock (NASDAQ: TSLA) continued to climb on Friday following news that Model Y vehicles would completely qualify for electric vehicle tax credits. The stock has risen over 77 percent so far this year after a broad market downturn that widely hurt the tech and automotive sectors in 2022. Tesla ...

View more: Tesla stock climbs on tax credit inclusion, continuing stratospheric rise in 2023

Tesla Cybertruck's Bed Capacity Shown In Recent Spy Shots

Tesla Model Y gains full access to $7,500 EV tax credit with new $80,000 price limit

Tesla Model 3 Refresh "Project Highland" Out Testing Under Wraps

Ford is in ‘deep development’ of its next-generation EV pickup truck

Tesla Model Y’s complete lineup now qualifies for EV tax credits through Inflation Reduction Act

U.S. Treasury makes more Tesla, Ford, GM EVs eligible for tax credits

Tesla Co-Founder JB Straubel Offers Insight On Battery Recycling

Tesla Model Y Long Range Delivery Estimate Pushed To March-May 2023

Tesla Cybertruck alpha prototype shows off its bed’s space by holding multiple 35″ tires

Tesla’s “Project Highland” Model 3 photos hint at upcoming updates worth keeping secret

Hyundai Ioniq 6 Beats Tesla Model 3 in EPA Range

BYD Atto 3 charges up at a Tesla Supercharger in Australia

OTHER CAR NEWS

; Kênh kiến thức kỹ năng, phát triển bản thân, hướng nghiệp, blog nhân sự