Although Tesla currently remains the top electric vehicle (EV) manufacturer in the U.S., a new study shows that increasing competition is slowly chipping away at the company’s market share.
Tesla has a 65 percent EV market share in the U.S. in the first nine months of 2022, which is down from 79 percent in 2020, according to a report from S&P Global Mobility as detailed by Yahoo Finance.
The study analyzed 525,000 EVs registered in the U.S. this year, with non-Tesla brands divided across 46 models including the prominent Ford Mustang Mach-E, Hyundai Ioniq 5, Chevy Bolt EV and several others.
U.S. Electric Vehicles Saved 700 Million Gallons of Gasoline in 2021 https://t.co/r03lrzHLZY
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By 2025, S&P expects the number of models, referred to as “nameplates,” to increase to as many as 159.
Still, S&P considers Tesla well-poised to handle the emerging EV industry and the team thinks the company’s sales will continue to grow, even as competitors chip away at its U.S. market share.
“Before you feel too bad for Tesla, however, remember that the brand will continue to see unit sales grow, even as share declines,” S&P Global Mobility associate director for AutoIntelligence Stephanie Brinley said. “The EV market in 2022 is a Tesla market, and it will continue to be, so long as its competitors are bound by production capacity.”
Data from S&P Global Mobility shows Tesla’s one-year conquest sales came from Toyota and Honda at 15% and 13% respectively, followed by BMW at 6.7%, Mercedes at 6.2%, Ford at 5.4%, Chevy at 4.7%, Audi at 4.4%, Subaru at 4.3% and other at 34%.
“The top-five Model Y conquests are the Lexus RX, Honda CR-V, Toyota RAV4, Honda Odyssey and Honda Accord,” S&P Global said. “Meanwhile, the top five Model 3 conquests are the Honda Civic, Honda Accord, Toyota Camry, Toyota RAV4 and Honda CR-V.”
Both Toyota and Honda have been slow to transition to all-battery electric vehicles, instead moving slowly with hybrids first. Honda plans to debut its new Prologue electric SUV in 2024.
