A recent report by Cox Automotive reveals that electric vehicle (EV) sales in the United States surged past 300,000 for the first time during the third quarter. However, industry leader Tesla experienced a significant market share drop to its lowest on record, now holding just 50% compared to the 62% share it had at the beginning of the year.
Tesla’s Response with Cybertruck
Despite the decline, Tesla may reverse this trend with the upcoming launch of its Cybertruck electric pickup truck, expected to be delivered to customers this quarter. This move aims to solidify Tesla’s presence in the highly competitive EV market.
Price War and Increased Competition
To compete in the tough market, other automakers have been cutting prices aggressively due to factors like high inflation and rising borrowing costs. This has led to higher inventory levels, greater product availability, and increased downward pricing pressure.
Cox Automotive noted that these developments have contributed to a continuous, linear growth in EV sales in the United States. The price war initiated by Tesla has also driven down average EV prices to $50,683 in September, a decrease from the prior month’s $52,212.
Record EV Sales
The report showcases a nearly 50% year-on-year increase in total EV sales for the third quarter. These sales accounted for a record 7.9% of the overall industry sales, reflecting the growing demand for electric vehicles.
Rivian’s Performance
Rivian Automotive exceeded analysts’ expectations by delivering more cars in the third quarter. The company also reiterated its annual production target of 52,000 vehicles.
Challenges for Tesla
In contrast, Tesla fell short of market estimates for third-quarter deliveries due to planned factory upgrades for a newer version of the Model 3 mass-market sedan, resulting in production halts.
Growing Demand for Diverse EV Options
Industry analysis firm Canalys previously noted the increasing demand for a broader range of EV choices to cater to the rising interest in electric vehicles, despite Tesla’s dominance in the United States.
The EV market is evolving rapidly, with more players entering the arena, making it an exciting space for both automakers and consumers.