New electric vehicles are reducing Tesla’s share in the US.

New electric vehicles are reducing Tesla’s share in the US.

Washington, Nov 29 – Tesla is losing market share in the United States as other automakers begin to sell electric vehicles below $50,000, according to a report released on Tuesday.

The S&P Global study points out that although Tesla remains the dominant brand in the electric vehicle (EV) segment, in the US there are more and more EVs from other brands that are reducing their market share.

Of the 525,000 EVs registered in the United States during the first nine months of 2022, nearly 340,000, or 65%, were Tesla models.

By comparison, in 2021 Tesla had 71% of sales and in 2020 the figure was 79%. According to S&P Global, by 2025, Tesla’s market share will drop to 20%, when 159 electric vehicle models will be available in the United States.

When the figures are concentrated only in the luxury EV market -currently 75% of total sales- Tesla’s dominance is greater, with 86% of the market share, ahead of Audi (3%) , Rivian (2%) and Polestar (2%).

Among the brands that are contributing to the fall in Tesla’s market share, for the most affordable part, are the South Korean Hyundai and Kia, as well as the German Volkswagen.

S&P Global added that luxury brands such as Mercedes-Benz, BMW, Audi, Polestar, Lucid and Rivian are poised to further whittle away Tesla’s market for the top end of the range.

But S&P Global also noted that even as Tesla’s market share shrinks, the number of registrations for the luxury electric vehicle brand will continue to rise in the coming years.

“The EV market in 2022 is a Tesla market and will remain so as long as its competitors are constrained by their production capacity,” said Stephanie Brinley, an associate director at S&P Global.

In the non-luxury EV market, the top brand by sales is Ford, with a 28% market share. Behind are Kia (19%), Hyundai (16%), Chevrolet (16%), Volkswagen (8%) and Nissan (7%).

The report also notes how many of the consumers who are switching from combustion vehicles to electric vehicles this year come from the Japanese brands Toyota and Honda, behind the rest in the electrification of their ranges.

From October 2021 to September 2022, of the 191,000 sales Tesla captured from other brands, 28.6% came from drivers who previously owned Toyota and Honda vehicles.

Ellie Gibson
Meet Ellie Gibson, an accomplished automotive author and industry expert based in the United States. With over a decade of experience in the automotive field, Ellie has a deep understanding of the latest technologies and trends in the industry. She has written several books on the subject, including "The Future of Electric Cars" and "The Evolution of the Automotive Industry." Her books are widely considered to be must-reads for anyone interested in the field, and she is often sought after as a speaker and commentator on automotive industry topics. Ellie is also a regular contributor to leading automotive publications and websites, where she provides expert analysis and commentary on the latest industry news and developments. In addition to her work as an author and industry expert, Ellie is also an avid car enthusiast and enjoys participating in motorsports events. She is passionate about educating the public about the latest advancements in the automotive industry and enjoys helping people make informed decisions when purchasing a vehicle.