Tesla's market share of electric power in the United States has fallen below 70%, and may be less than 20% three years later.
Beijing, Nov. 30 (Xinhua) Tesla is still the best-selling electric vehicle brand in the United States, but its dominance is being weakened as competitors introduce more affordable models, according to a report released by automotive research firm S & P Global Mobility on Tuesday.
As of the third quarter of this year, Tesla's market share of newly registered electric vehicles in the US was 65 per cent, down from 71 per cent last year and 79 per cent in 2020, according to Tesla Model 3. S & P global forecasts that the number of US electric vehicle models is expected to increase from the current 48 to 159by 2025, while Tesla's market share will fall below 20 per cent.
Tesla's decline in US market share is to be expected, but the pace of decline is likely to worry investors in Elon Musk's car and energy companies. Tesla shares closed down about 1 per cent to $180 on Tuesday as Mr Musk focused on reversing Twitter, the social media company he recently acquired. Tesla's share price has fallen by nearly half so far this year.
Tesla is slowly losing its dominant position in the US electric car market and is being replaced by pure electric vehicles currently priced under $50, 000, the report said. In this subdivision field, "Tesla is not really competitive yet." Tesla's entry-level Model 3 starts at about $482,000 (including freight), but the car usually offers more configuration options and is sold at a higher price.
"with the arrival of new and more affordable options to provide the same or even better technology and production components, Tesla's position is changing," S & P Global said. "given the growing choice and interest of consumers in the electric car market, Tesla's ability to maintain market dominance in the future will be challenged."
The move follows reports on Monday that Tesla was developing an improved entry-level Model 3 aimed at reducing production costs and internal components and complexity. Mr Musk said on a conference call in the third quarter in October that Tesla would eventually develop a new and more affordable model. He first announced the model in 2020.
Stephanie Brinley, associate director of automotive research at S & P Global, pointed out that Tesla's sales are expected to grow in the coming years, despite a decline in market share.
Tesla's current leadership in the field of electric vehicles is based on a relatively insignificant market. Despite the attention paid to electric vehicles, sales of pure electric vehicles and plug-in hybrid vehicles are still negligible.
Of the 10.22 million vehicles registered in the US as of the third quarter of this year, about 525000 were pure electric models, accounting for 5.1 per cent, up from 334,000 and 2.8 per cent in the third quarter of 2021, according to S & P global data. As of September, the majority (nearly 340,000) of electric vehicles registered in the US were Tesla, and the rest were very unevenly distributed to 46 other brands.
