In the United States, Tesla remains dominant with its significant market share despite its high pricing. However, a recent study suggests that clients are now opting for affordable electric vehicles, as reported by Teslarati.
S&P Global Mobility study
According to a recent S&P Global Mobility study, Tesla continues to control a sizable share of the American market for electric vehicles, about 65 percent. However, the cost is the main reason why this number decreased from 79% two years earlier.
“Much of Tesla’s share loss is to EVs available in a more accessible MSRP range – below $50,000, where Tesla does not yet truly compete.”
S&P Global Mobility
Tesla vehicle registrations
It is worth noting that approximately 525,000 EVs were registered from January to September 2022, and 340,000 of those were Tesla vehicles.
Furthermore, Model 3 and Model Y dominated 56% of the market. On the other hand, 46 additional EVs are “competing for scraps” with each other for the remaining sales. At the same time, electrification has become more popular among American consumers.
Based on the registrations from January to September, four Tesla models are among the top five in the United States. Meanwhile, the following cars are in the sixth through tenth spots:
- Chevrolet Bolt EV/EUV with 21,600 registrations
- Hyundai Ioniq5 with between 17,000-18,000 units
- Kia EV6 with between 17,000-18,000 units
- Volkswagen ID.4 with 11,000 units
- Nissan Leaf with 10,000 units
Tesla leads the EV market
As you can see in the photo above, Tesla remains the market leader in the EV and luxury EV markets, with 65% and 86%, respectively. According to the firm’s analysis, these alternatives provide “equal or better technology and production build.”
That said, it is not certain that Tesla will continue to hold a dominant market share in the coming years.
According to the S&P Global Mobility research, Tesla’s emphasis on EVs is the automaker’s largest advantage because “few EV owners have returned to ICE powertrains.” It will just be challenged by the new electric vehicles that are set to hit the market, especially the cheaper ones.
For reference, about 74% of Model Y buyers were first-time Tesla owners, and the brand currently enjoys a brand loyalty rate of 60.5%. Remarkably, these numbers are both industry leaders.
