Tesla is expected to lose its long-held 50% market share in the U.S. electric vehicle (EV) market.
According to data from MarkLines, which provides automobile sales data, Tesla’s sales in the U.S. market from June to May this year amounted to 618,000 units.
In contrast, other manufacturers’ electric vehicle sales were 597,000 units.
However, this could change when the June sales figures are released next week. This is because the figures include popular new models from competitors like Hyundai and Kia.
In the first quarter of this year, Tesla’s sales in the U.S. market decreased by 13% compared to the same period last year. On the other hand, six out of the top 10 EV manufacturers saw significant increases in sales. Hyundai (including Kia), ranked second, saw a 56% increase, while Ford, ranked third, saw an 86% increase. This trend continued in April and May.
Tesla took first place in the U.S. EV market when it released the Model S in 2015. After the Model 3 was launched in 2018, Tesla sold more EVs than all other manufacturers combined. However, the gap has steadily narrowed as manufacturers have released more EVs.
Chief Executive Officer Elon Musk’s divisive politics have eroded Tesla’s market dominance. According to Stephanie Valdez-Streaty, director of industry insights at Cox Automotive, a significant gap in the product cycle has left the carmaker dependent on just two vehicles for 95% of its sales. Competitors are now entering market segments where Tesla currently has no offerings.
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