Tesla’s share of US EV market has shrunk regardless of worth cuts

Amid a rising U.S. EV market, each the common worth of a Tesla and the automaker’s market share decreased considerably within the third quarter of 2023, new knowledge from Kelley Blue Ebook exhibits.

EV transaction costs have been down general in Q3. In September, the common worth paid for an EV was $50,683, down from $52,212 in August and down from greater than $65,000 one 12 months in the past.

Nevertheless, Tesla costs declined at a a lot steeper fee than different manufacturers. In an effort to spice up gross sales, Tesla reduce costs to the purpose the place they’re now down 25% 12 months over 12 months. And it simply introduced extra worth cuts for the Mannequin 3 and Mannequin Y earlier this month.

EV worth change proportion by automaker for Q3 2023 (through Kelley Blue Ebook)

The value cuts did appear to assist, as Tesla’s Q3 gross sales elevated 19.5% 12 months over 12 months, beating the business common of 16.3% 12 months over 12 months progress. Nevertheless, Tesla’s share of the EV market shrank to 50% in Q3, down from 62% in Q1 and the bottom ever recorded.

Tesla misplaced market share whereas rising gross sales as a result of the general EV market has grown. Quarterly U.S. gross sales surpassed 300,000 automobiles for the primary time, whereas year-to-date gross sales via September reached 873,000 automobiles, placing the market “firmly on observe” to surpass a million gross sales for the primary time ever this 12 months, based on KBB, noting that Tesla “stays the undisputed chief in EV gross sales.”

Tesla Supercharger

Tesla final month reported that it had made 5 million EVs globally, essentially the most of any automaker, whereas California simply earlier final 12 months accounted for one-eighth of Tesla’s international deliveries. Compared, Ford has the second-highest U.S. EV gross sales whole at 20,000 automobiles. Different automakers—Porsche, Mercedes, Volkswagen, Volvo, Audi, and BMW—have surpassed 10% EV gross sales, however that also interprets to small numbers of automobiles.

Tesla has been shedding EV market share for years however gaining share versus luxurious manufacturers. Now that almost all of these luxurious manufacturers have a variety of EVs, the development seems to be reversing.