Tesla Loses Ground: Elon Musk's EV Market Share Falls Below 50% For First Time
Tesla Inc.‘s (NASDAQ:TSLA) share of the electric vehicle (EV) market in the U.S. has dipped below half for the first time.
What Happened: The Elon Musk-led company is seeing more automobile rivals grab market share in the sector it once dominated.
Tesla’s share of the EV market in the U.S. fell to 49.7% for the second quarter, marking the first time that it has been below 50% in a quarter, according to new estimates released on Tuesday by research firm Cox Automotive. That is down from a market share of 59.3% posted in the second quarter of 2023.
Cox plans to release its full second-quarter EV sales report on July 11, but it gave a sneak peek at some data, including Tesla’s dwindling market share, in its most recent newsletter. Here’s a breakdown of the numbers:
- Tesla saw its U.S. sales decline by 6.3% over a three-month period
- Strong EV sales by General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Hyundai and Kia lifted total second-quarter sales in the U.S. to a record estimated 330,463 units sold.
- This total, an 11.3% increase year-over-year, quarterly sales and beat the previous record of 317,168 EVs sold in the U.S. during the fourth quarter of 2023.
- EV sales accounted for 8% of total U.S. automobile sales in the second quarter, up from 7.1% in the previous quarter and 7.2% a year ago.
- Llower sales from European luxury makers, such as Mercedes-Benz, pulled down the total volume.
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"While Tesla's sales continue to decline, with its share of EV sales now below 50% for the first time, the overall electric vehicle competitive landscape intensifies further,” Cox’s Industry Insights Director Stephanie Valdez Streaty said in a statement.
“This is leading to continued price pressure, helping push EV adoption slowly higher. Automakers that deliver the right product, at the right price, and offer an excellent consumer experience will lead the way in adoption."
Many consumers are now buying electric cars from established carmakers like BMW or Ford, which have large dealer networks that can provide maintenance and repairs, the New York Times reported.
Price Action: Tesla gained 3.7% to close at $262.33 on Tuesday, while General Motors slipped 0.62% to $46.26 and Ford also dipped 0.62% to $12.90.
The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) slipped 0.45% on Tuesday as iShares Self-Driving EV and Tech ETF (NYSE:IDRV) declined 0.17% and SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL) edged up 0.06%.
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