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Tesla's Rivals Struggle for Market Share in US EV Sales

by EVBASEOperate September 28, 2023

1 Comment

Tesla's Rivals Struggle for Market Share in US EV Sales

Tesla Dominates the US EV Market

According to S&P Global Mobility data, Tesla continues to outshine its rivals in the US electric vehicle (EV) market. During the first half of the year, Tesla outsold its next 19 competitors by a ratio of 10 to one or more. With sales reaching 325,291 vehicles from January to June, Tesla maintains a significant lead over other brands. General Motors' Chevrolet brand ranked a distant second with 34,943 units sold, followed by Ford, Hyundai, and Rivian.

Limited Sales Volume Hinders Competitors' Growth

While global automakers are investing billions of dollars in new EV and battery plants, most models fail to achieve the sales volumes necessary to support large-scale assembly plants. A Reuters analysis of US EV sales data for the first half of 2023 reveals that apart from Tesla's Model Y and Model 3, few other models sell at high enough volumes to be profitable. For instance, the Chevrolet Bolt sold 35,000 units, while Ford's Mustang Mach E reached only 13,600 units sold. These figures fall far short of the volume required to fill a typical assembly plant operating at 80% capacity or more. 

Ford's Decision Raises Concerns about the EV Market's Viability

Ford's recent decision to halt work on a planned $3.5 billion electric vehicle battery plant in Michigan highlights concerns regarding the growth potential of the US EV market. Analysts question whether the market can sustain the increasing number of battery and assembly operations currently under construction. Ford, like other automakers, has committed billions to build additional EV and battery plants in the US but has faced challenges, projecting a full-year loss of $4.5 billion on its EV unit.

Tesla's Market Share Remains Strong Despite New Entrants

Although Tesla has faced competition from new entrants in the EV market, it still commands nearly two-thirds of all EV sales, as noted by Cox Automotive during a recent media presentation. While Tesla has relinquished some market share this year, no other brand has surpassed a 10% market share. This indicates Tesla's continued dominance in the industry.

Falling Prices Drive Growth in EV Sales

One factor contributing to the growth of EV sales is falling prices. Tesla, with its superior profit margins, has been able to reduce prices and expand sales. According to Cox Automotive, average EV retail prices dropped from nearly $70,000 a year ago to $53,376 in July 2023. As a result, EV sales are estimated to rise to 8% of total US vehicle sales in the third quarter, up from about 6.5% a year ago.

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1 Response

Tom Sheeran
Tom Sheeran

October 01, 2023

Very interesting news – we just got a 2023 Tesla Y!

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