Hyundai, Kia, GM, Ford Make Strides... No New Models Either
Tesla's market share in the U.S. electric vehicle market, which it once dominated, has fallen below 50% for the first time ever.
On the 9th (local time), Cox Automotive announced that Tesla's share of the U.S. electric vehicle market in the second quarter of this year was 49.7%.
Tesla's market share in the second quarter of last year was 59.3%. This represents a drop of about 9.6 percentage points in one year. According to Cox, this is the first time Tesla's quarterly market share has fallen below 50%.
This is analyzed as a result of Tesla's new car sales slowing down while competitors such as General Motors (GM), Ford, Hyundai Motor Company, and Kia have expanded their electric vehicle sales.
Despite recent concerns about demand slowdown, the U.S. electric vehicle market continues to grow. In the second quarter, electric vehicle sales and leases increased by 11.3% compared to the same period last year. The share of electric vehicles in total new car sales and leases also rose to 8%, up from 7.2% in the same period last year. Stephanie Valdez Street, director at Cox, said, "With fierce competition driving down vehicle prices, the share of electric vehicles in the overall market is gradually increasing."
The New York Times (NYT) evaluated Tesla's market share falling below 50% as "a sign that it is losing dominance in the market it created with the launch of the Model S in 2012." The outlet noted, "Until a few years ago, there were few competitors, and Tesla boasted overwhelming advantages in driving range on a full charge and acceleration performance," but "recently, electric vehicles with similar or better performance than Tesla's have been released." Currently, more than 100 electric vehicle models are sold in the U.S.
Tesla's focus on online sales and lack of a dealer network were also pointed out as reasons for the decline in market share. Consumers facing difficulties with maintenance and repairs have turned to brands like BMW and Ford, which have large dealer networks. The absence of new electric vehicle models is also cited as a problem. The NYT explained, "Tesla's bestseller, the Model Y, started sales in 2020 and has become outdated by industry standards," adding, "Hyundai and Kia offer more electric vehicle models than Tesla, with competitive prices and new designs."
Meanwhile, Tesla announced that its vehicle deliveries in the second quarter reached 443,956 units. Although this is a 4.8% decrease compared to the previous year, it is nearly a 15% increase compared to the first quarter. Tesla did not disclose country-specific data, but Cox estimated Tesla's U.S. sales in the second quarter at 164,000 units, a 6.3% decrease from the previous year.
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