Electric vehicles: why is Tesla losing market share in the United States?

Samir Rahmoun

December 01, 2022 at 4:20 p.m.


Tesla logo © © Austin Ramsey / Unsplash

© Unsplash

Tesla is seeing its market share decline in the United States, with a historic year 2022 where its shares currently stand at 65% of sales. Change seems to be beginning in this market of the future.

In terms of electric vehicles, Tesla is not only the leader in the field in the United States, it can almost be considered the creator of this market across the Atlantic. However, the figures provided by the analysis firm S&P Global Mobility show a relative decline in its market share.

A market eyed by many competitors

And this “fall” is rapid. In 2020, the company led
by Elon Musk represented 79% of new electric vehicles registered in the United States, compared to 69.95% last year, and 65% for the first nine months of 2022. Of the 525,000 new electric vehicles released in the United States , “only” 340,000 of them were Teslas.

In a sense, these numbers are not surprising. With a growing market, the number of competitors ready to invest in it increases, which mechanically reduces the place occupied by the first entrant, namely Tesla. Still according to S&P Mobility, the number of electric vehicle models offered in the world’s leading power should increase from 48 to date to 159 in 2025, with Tesla contributing only one model to this growth.

Tesla’s rivals aim for more economical niches

But if it is logical that the relative share of Tesla declines with the arrival of increased competition, another phenomenon also explains this decline. Indeed, other manufacturers are trying their luck by marketing electric vehicles for less than $50,000, a price bracket where the manufacturer has little presence.

Tesla’s position is changing as new, more affordable options arrive that offer equal or better technology », Explains S&P Mobility. A situation that contrasts with the high-end sector of electric vehicles (whose price exceeds the 50,000 dollar mark), where Tesla has 85% of the market share.

The manufacturer with the red logo would not, however, give in to the ease of simply aiming for the upper echelons of the market. According to Reutershe is currently working on a new version of his Model 3, which he hopes will reduce production costs.

Sources: Electrek, Reuters

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