- Critics argue Tesla has failed to effectively update its portfolio while rivals who have gained ground done just that.
Champions too have weaknesses. And in the world of electric vehicles, the softer spots of Tesla are gradually getting exposed as the US carmaker recently saw its EV market share in the country fall to below 50 per cent. Although still significantly ahead of rivals, Tesla sales have taken a hit in recent times and many believe is floundering to arrest the slide.
EV sales in the global market have lost some degree of steam, prompting many carmakers to revisit their previously declared strategies. But while many established carmakers have the option of going down a dual road with both electics and combustion-engine vehicles, Tesla has an all-electric portfolio. And in the US, as per research firm Cox Automotive, the Elon Musk-led company saw its quarter two market share dip to 49.7 per cent, down from 59.3 per cent from a year earlier.
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Often credited with taking EVs to the masses, the first Tesla model that became a blockbuster hit was the Model S sedan that was introduced in the US in 2012. Success came and success came fast. Subsequent Tesla cars like Model X and especially the Model 3 have been quite popular – both in the US and elsewhere. But critics argue Tesla has been slow to refresh its portfolio with Cybertruck being the latest model and even then, deliveries began way behind schedule.
US EV market pie: Who has what share?
Tesla is still the leader with a sizeable chunk of the EV market share. But the concern for the company could be stemming from the fact that its market share has dipped despite a slight uptick in Q2 sales for EVs in the country – 11.3 per cent compared to the same period of 2023.
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The likes of General Motors, Ford, Hyundai and Kia have all gained ground in Q2, as per the Cox Automotive report which used registrations, company reports and other data to estimate EV market shares in the US.
First Published Date: 10 Jul 2024, 10:26 AM IST