Record High Electric Vehicle Sales in the US, Tesla’s Market Share Declines but Dominance Persists

In the third quarter, electric vehicle (EV) sales in the United States exceeded 300,000 for the first time.

In the third quarter, electric vehicle (EV) sales in the United States exceeded 300,000 for the first time, according to a report by Cox Automotive. Surprisingly, Tesla, the industry leader, saw its market share drop to an all-time low, holding just 50% of the market, down from the 62% it had in the first quarter. This decline comes despite Tesla’s efforts to engage in a price war to establish itself in the competitive EV market.

The outlook for Tesla, however, might change with the imminent launch of its Cybertruck electric pickup truck, set for delivery in the current quarter, as suggested by the market research firm.In response to challenging market conditions marked by high inflation and rising borrowing costs, other automakers are aggressively slashing prices to catch up. According to Cox, increased inventory levels, enhanced product availability, and competitive pricing strategies have contributed to the consistent growth of EV sales in the U.S. market.

Tesla’s initiation of a price war has led to a notable decline in the average cost of electric vehicles, dropping to $50,683 in September from $52,212 in the preceding month, as stated by Cox.

During the third quarter, electric vehicle (EV) sales experienced an impressive growth of nearly 50% compared to the previous year. This surge in sales marked a milestone, with EVs now accounting for a record-breaking 7.9% of total industry sales, as reported.

Rivian Automotive pleasantly surprised analysts by surpassing delivery expectations in the third quarter. The company also reaffirmed its ambitious annual production goal of manufacturing 52,000 vehicles.

On the other hand, Tesla faced challenges in meeting market delivery projections for the third quarter. Planned upgrades at their factories, aimed at introducing a new version of the Model 3 mass-market sedan, resulted in production interruptions.

According to insights from industry analysis firm Canalys, Tesla’s dominance in the United States is being met with a growing demand for a more diverse range of EV options. This demand reflects the expanding interest in electric vehicles, signaling a changing landscape in the EV market.