Experts claimed that Tesla’s market shares are currently falling. But, why is it happening right now when EVs are becoming more popular?
Tesla‘s market shares are claimed to be downgraded, even though electric cars are becoming more popular than ever. This is certainly unusual since Elon Musk’s EV manufacturer is currently the top company when it comes to producing and developing electric cars.
Tesla is the biggest electric vehicle powerhouse in the US by far, but rivals are starting to eat away at its share of the market as the appetite for electric cars explodes. From January through June 2020, the giant EV maker accounted for a staggering 79.5% of all new EVs registered in the US.
During the same six months in 2021, 66.3% of new-EV registrations went to Tesla, according to Experian data published Monday. Auto industry titans like Volkswagen, Ford, and General Motors are betting big on a future dominated by battery-powered cars, and they’re plunging billions into efforts to electrify.
Why Elon Musk’s EV Market Shares Fall?
As of the moment, Tesla is clearly facing a lot of giant competitors since most car manufacturers right now want to transition to electric car makers. In 2021, Audi’s share of EV registrations grew to 3.3%, Ford’s grew to 5.2%, and Chevrolet’s increased 1.3% to hit 9.6%, according to Experian. Nissan’s share rose to 3.9%.
Ford launched its first modern EV, the Mach-E SUV, in late 2020. Audi’s first mass-market EV, the E-Tron SUV, went on sale in 2019, and the Volkswagen subsidiary has announced multiple new electric models since. Because of this, Tesla car models are becoming less popular.
Tesla may be losing market share, but its sales and the EV space more broadly are growing dramatically. Tesla sold some 386,000 vehicles during the first half of 2021, more than double the number it sold during that period in 2020. From January to June of 2021, EVs made up 2.4% of new vehicle registrations, according to Experian. That’s not much, but it’s more than double the same six months in 2020.
As of the moment, there are still some experts who believe that Tesla would still be dominant for years, but rivals will overtake it in EV sales within the decade. Analysts at UBS said in March that Volkswagen will sell more electric models than Elon Musk’s EVs in 2025, but Tesla will turn a bigger profit on the cars it sells.
Meanwhile, the giant automaker is trying to raise its EVs’ prices. Although this allows it to have more revenues, some consumers are now considering purchasing other budget-friendly electric cars since Model 3, Model Y, and other brands are becoming more expensive than ever. Right now, Elon Musk and his company still remain the top firm when it comes to EV making. But, this could still change depending on the flow of other manufacturers.