Tesla Is Losing Market Share As Rivals Debut New EVs

Industry News / Comments

People want good EVs, whoever makes them.

When you think of an electric car brand, your mind likely gravitates towards Tesla, just as people used to think of the Toyota Prius when you mentioned a hybrid. But while Tesla is currently the world's dominant EV-maker, recent releases from other startups as well as more traditional automakers have shown that more than one company can build a great electric vehicle. We have new companies like Rivian along with new offerings from established companies, including Audi's e-tron GT and Ford's Mustang Mach-E. With more automakers bringing their electric vehicles to market, Automotive News reports that Tesla is starting to see a shrinking share of the customer base.

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According to the report, last year through May saw Tesla build four of the top five new EVs registered with state governments, but this year, the carmaker only has two in the whole top 10. This does not mean that Tesla is in trouble - new-vehicle registrations have still climbed through May by 81%, but at the same time, the EV total has jumped 116%.

Jeff Schuster, president of global forecasting at LMC Automotive, sums it up nicely: "As this vehicle type becomes more mainstream and there's just more choices out there for consumers, I think that that's why we do expect to see Tesla's share - not their volume, because that's going to grow as they add more products - but their share of the segment is going to fall."

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Due in part to production delays, the Model S and Model X have fallen out of the top 10 of new EV registrations, while the Model 3 also saw a drop in registrations. Schuster elaborates on potential causes, saying that "the X and S are aging". Nevertheless, Schuster foresees continued success for Tesla, saying that while Tesla's overall share of the EV market will drop, the market itself will continue to grow, and that means more people will be there to buy more EVs, including Teslas. Battery-electric vehicle registrations in the US have more than doubled this year through May, reaching 166,255 units, so it looks like the pie is only getting bigger. Bigger pie equals bigger slices for Tesla and others, even if the percentage of volume drops.

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2021 Tesla Model S Plaid Front View Driving Tesla
Source Credits: Automotive News

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