Enhanced stock levels, a wider product range, and reduced prices have driven the consistent growth of EV sales in the U.S.
Electric vehicle (EV) maker Tesla’s market share dropped to the lowest on record as EV sales in the United States (U.S.) hit record high. EV sales in the U.S. have gone up to 300,000 for the first time in the third quarter.
EV sales surged by nearly 50% year-over-year in the third quarter, capturing a historic 7.9% of the overall auto market.
Tesla’s market share has slipped to 50% from 62% in the previous quarter, in spite of their price reduction strategy.
Tesla fell short of third-quarter delivery forecasts. This was due to planned upgrades at its production facilities for the newer Model 3 variant, leading to production interruptions.
Despite the dip, the upcoming release of Tesla’s electric pickup truck, Cybertruck, could alter this trajectory, as deliveries are scheduled for this quarter, according to market researchers.
With the rising competition, other EV makers are slashing prices in response to challenges posed by high inflation and increasing loan costs.
Due to Tesla’s price reduction strategy, the average EV price decreased to $50,683 in September, a decline from $52,212 the previous month.
EV maker Rivian Automotive exceeded third-quarter delivery expectations and maintained its yearly goal of producing 52,000 vehicles.
Canalys, an industry research firm, mentioned that while Tesla remains influential in the U.S., there is a growing demand for a more diverse range of EVs, reflecting the increasing interest in electric vehicles.
