According to a recent analysis, Tesla’s hold on the US EV market may be waning and might loosen up considerably more quickly in the coming years. According to S&P Global Mobility, at the conclusion of the third quarter, Tesla had 65% of the market for new EVs, down from 79% in 2020. That percentage could drop to 20% in 2025, according to S&P, as competitors flood the market. One specific issue is Tesla’s absence of more affordable models. Although its entry-level Model 3 costs just around $50,000, rivals are releasing cars for far less money.
Tesla will eventually need to use more of its numerous demand levers, or more inexpensive electric vehicles will need to be introduced to the market, and most likely sooner rather than later. If Tesla wants to continue to rule the US EV market, then this is necessary. Although Tesla still has a sizable market share advantage over the competition, manufacturers are coming up.
Elon Musk’s vehicle and energy company’s market share in the United States has decreased, as was to be predicted, but the rate at which it has done so may worry investors. Tesla shares decreased slightly on Tuesday to close at $180 as Musk concentrated his attention on fixing Twitter, his recently acquired social media company. To date, Tesla’s stock has dropped by over half.
A less expensive and more portable variant may be hitting the market soon, according to Tesla and CEO Elon Musk, who made the announcement recently. The concept, however, was quickly abandoned, and it became apparent that the company’s robot, Full Self-Driving capability, and bringing the Cybertruck to market are now the main priorities, among many others.
However, Tesla did recently provide details regarding a platform that will be far more affordable to manufacture than the Model 3 car and Model Y SUV. The more inexpensive prices of Tesla EVs constructed on this next platform might aid the US EV manufacturer in regaining some of the market shares it is presently losing in the US for the sector.