During the third quarter, Tesla maintained its status as the leader in electric vehicle (EV) sales. However, its dominance is quickly eroding.
Last quarter, Tesla accounted for 50% of all electric vehicles (EVs) sold in America. According to data from Forbes, Tesla had a 65% EV market share just a year ago and a 79% market share as recently as 2020.
In a notable milestone, Americans purchased over 300,000 EVs for the first time in Q3. Year-to-date EV sales exceeded 873,000 by September 30. It’s expected that EV sales will surpass the 1 million mark before the end of the year.
According to Kelley Blue Book, Q3 saw a significant increase in total EV sales. EV sales spiked by 49.8% compared to the same period last year. EVs represented 7.9% of all car sales between July and September, marking a 0.7% increase from the previous quarter.
Moreover, EV sales prices in Q3 were significantly cheaper than in the same period last year. Tesla, in an attempt to boost sales volume, reduced prices by approximately 25% year-over-year.
While Tesla’s sales experienced a growth of 19.5% last quarter, the expanding list of competitors has diminished its lead.
Volvo, Nissan, Mercedes, and Hyundai have more than tripled their EV sales year-over-year. This is mainly due to the introduction of new EV models to the market. Fourteen entirely new EV models debuted last quarter.
Luxury German brands such as Audi, BMW, and Mercedes also continue to experience significant growth in EV sales. BMW and Mercedes tripled their EV sales compared to the previous year, while Audi achieved a growth rate of 94%.
Tesla is hoping that the upcoming launch of the long-anticipated Cybertruck could help it regain some market share. However, skeptics doubt that the Cybertruck will ever be mass-produced. Tesla has delayed the Cybertruck’s launch date five times.
Experts predict that the number of available EV models will double by 2027. As a result, it’s likely that Tesla’s EV market share will continue to collapse.