Tesla’s Share of EV Market Slips as Total US Sales Expected to Hit the Million Mark

[Kyle]

Despite several price cuts, Tesla saw its market share drop roughly 12% last quarter

As electric vehicle sales are poised to surpass 1 million annual sales for the first time ever, Tesla's share of the market has slipped to its lowest on record.

Tesla — by far the leader in the EV industry — sold roughly 156,000 of the more than 313,000 electric vehicles sold last quarter, according to Cox Automotive. While dominating 50% of the EV market would be more than acceptable for most companies, the Austin, Texas-based Tesla controlled 62% of the market in the first quarter of 2023.

Tesla has led the pack, enacting price cuts on at least some of its vehicles in nearly every month of 2023. The price of a new Tesla has fallen by nearly 25% since Sept. 2022, with the cost to buy a Model 3 sedan dropping 26% on average.

However, Tesla's deliveries failed to match Wall Street's expectations last quarter. The automaker only delivered 430,488 EVs, more than 20,000 vehicles below analysts' predicted 458,713 EVs.

The Model Y was the best-selling EV last quarter, making up nearly 30% of the market. Sales of the Model Y dominated close to 34% of the market in 2023, according to Cox. The Model 3 was the next best-seller, with 17% of the market for the last quarter and 19% for the past nine months.

Tesla’s Share of EV Market Slips as Total US Sales Expected to Hit the Million Mark

Despite several strings of price cuts, Tesla's market share dropped roughly 12% last quarter

themessenger.com

 

[Sneakers]

People are reluctant to buy the other brands, and they are hitting the saturation point of people that want Teslas. It has to start dropping off sooner or later.

 

[PeoplesElbow]

People are reluctant to buy the other brands, and they are hitting the saturation point of people that want Teslas. It has to start dropping off sooner or later.

While allowing other EV's on the Tesla charging network was the right thing, its going to hurt them. In 20 years I am betting Tesla doesn't sell vehicles, but liscenses their tech and is an EV charging company.

 

[glhs837]

I think some of this has to do with the knowledge that there are refreshes of both the Model 3 and the Model Y on the horizon. The Model 3 refresh, referred to as "Highland", has released in China and Europe with great reviews and is expected to release here in less than a year. With the Model Y refresh not fat behind.

But there is also a need for them to expand into the lower cost market, especially in this inflation era where interest rates on loans means people want less expensive cars.