Tesla has just seen its share of the electric vehicle market in the United States decline below 50% for the first time in Q2 2024, the New York Times reports, citing estimates of popular system software company Cox Automotive.
Tesla starts to lose grip on the EV market
Tesla’s share of the electric vehicle market in the US dropped to a record 49.7% in the second quarter of the year for the first time in a quarter.
This rate indicates a notable decline from its Q2 2023 market share of 59.3%, according to the report. It also reflects a considerable drop from its 50.9% record in Q4 2023.
This estimate demonstrates how emerging players threaten Tesla’s dominance in the US as they start to grab a larger portion of the market.
“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. 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.”
Cox’s Industry Insights Director Stephanie Valdez Streaty
Cox Automotive to release Q2 2024 report on Thursday
Cox Automotive has yet to publish its full Q2 2024 electric vehicle sales report on July 11, 2024.
However, it previewed some interesting data, such as Tesla’s declining market share:
- Tesla’s EV sales in the US dropped 6.3% over three months
- Solids sale performances of GM, Ford, Hyundai, and Kia boosted overall Q2 2024 results to an estimated record of 330,463 units
- US EV sales surged by 11.3% YoY in Q2 2024, beating the previous sales high of 317,168 EVs in Q4 2023
- EVs accounted for 8% of overall volume in Q2 2024, up from just 7.1% in Q1 2024 and 7.2% YoY
- Weaker sales figures of European luxury brands, such as Mercedes-Benz, pulled down the total volume
It is intriguing to note that many customers buy electric vehicles from established brands like BMW or Ford. They have enormous dealer networks that can offer reliable maintenance and repairs.
Meanwhile, Tesla sells EVs through its online platform. According to many of its customers, getting their units repaired at Tesla’s relatively small network of service hubs can be challenging.
Price action
Despite its dwindling market share, the American electric vehicle giant reportedly gained 3.7% to close at $262.33 on Tuesday, according to Benzinga.
On the other hand, General Motors dropped 0.62% to $46.26. Ford also recorded a 0.62% decline to $12.90.
We can expect to learn more about the sales and market share figures in the US market when Cox Automotive publishes its full report on Thursday. In the meantime, it remains to be seen if aspiring Tesla rivals can actually beat the Musk-led company in the coming quarters.
