Mustang Mach-E, courtesy of Ford
Tesla’s market share has been dropping in recent months, as other brands begin to go electric.
According to CNN, an analysis by Morgan Stanley shows that Tesla’s share of the United States electric vehicle (EV) market dropped to 69% last month, down from 81% the prior year. The Ford Mustang Mach-E, which officially entered the market in January, and sold 3,739 units in February.
Despite the drop, Tesla’s US sales are still on the rise, amidst a climate of increasing consumer interest in EVs. The company’s sales increased 5.4% in February, according to figures from the analysis.
In a note, Morgan Stanley’s Adam Jonas claims that the “Mach-E accounted for nearly 100% of [Tesla’s] share loss.”
Tesla’s European Market Share Falls, China Tops Global EV Race https://t.co/NLRKnWHzR2
— TeslaNorth.com (@RealTeslaNorth) March 2, 2021
The reduction in Tesla’s market share shouldn’t come as too much of a surprise, as a number of legacy automakers like Ford, GM, Volkswagen, and others are just entering the global and US EV scenes.
Tesla’s sales are still increasing with mainstream adoption of EVs, but similar trends of the company losing market share as the EV market grows have been spotted elsewhere in the world too, especially in Europe.
In any case, more EVs on the market are a good thing for consumers, though they may be less of a good thing for Tesla. Still, the company’s Model 3 and Model Y SUV both remain some of the world’s top-selling vehicles right now, even if they’re being threatened by other brands’ entries into the EV sector.
