Electric vehicles (EVs) are rapidly gaining traction in the US, but is Tesla keeping pace?
In a recent twist, US electric vehicle sales skyrocketed, exceeding 300,000 units in the third quarter. However, industry juggernaut Tesla experienced a dip in its market share, slipping to its lowest on record, according to a study by Cox Automotive.
The Cox Automotive report revealed that Tesla’s control has shrunk to 50% of the market, a noticeable drop from the 62% it boasted in the first quarter.
Despite Tesla’s aggressive pricing strategy, spearheaded by the visionary Elon Musk, competitors aren’t standing still. As Tesla strives to maintain its dominance, other automakers are strategically slashing their prices, tackling challenges from high inflation and soaring borrowing costs.
“Higher inventory levels, more product availability, and downward pricing pressure have helped spur continued linear growth of EV sales in the U.S. market,” remarked Cox, according to Reuters.
This pricing battle led by Tesla brought the average EV price to $50,683 in September, a decrease from the previous month’s $52,212.
It’s not all gloom for Tesla, though. The upcoming launch of its eagerly awaited Cybertruck could reverse this trend.
“The company could reverse the downward trend with the launch of its Cybertruck electric pickup truck,” said the market research firm.
But challenges persist. While Rivian Automotive exceeded delivery expectations for the third quarter, Tesla fell short. Production halts due to planned upgrades at Tesla factories for a new Model 3 version might be to blame.
In a concluding note from industry analysis firm Canalys: Tesla’s dominance in the US remains undisputed, but the growing appetite for diverse EV options indicates the game is far from over.