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Tesla's (TSLA) EV Market Share Comes Down to 50% in Q3
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Tesla, Inc.’s (TSLA - Free Report) market share in the U.S. electric vehicles (EV) segment has come down to 50% in third-quarter 2023 from a much-vaunted 62% in the first quarter. EVs have been rapidly gaining ground since the pandemic years, and sales in the United States rose for the 13th straight quarter, as reported by Cox Automotive on Thursday. It is becoming abundantly clear that EVs are here to stay, and demand is rising by the day. Consumers are gradually shifting from cars run on fossil fuels to their environment-friendly alternatives.
The latest quarterly estimate shows a record 313,086 electric cars sold from July to September, breaching the 300,000 mark for the first time in the third quarter. EVs now account for 7.9% of total auto sales in the United States, up from 6.1% a year ago and 7.2% from the second quarter.
One of the biggest drivers of this growth in sales and rise in market share has been the slashing in prices led by Tesla. EV prices are down 22% from a year ago, and the average price paid in September was $50,683. Tesla models have been ahead of the market in cutting prices, with its current starting price at $38,880. High levels of inventory have also helped drive sales.
Even as Tesla’s market share comes down from its first-quarter peak, it is nonetheless expected that with the launch of its much-awaited electric pickup vehicle Cybertruck, the Elon Musk-led automobile giant can reverse the downward trend. Tesla currently carries a Zacks #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford Motor Company (F - Free Report) , General Motors Company (GM - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) are three other automobile majors that have emerged as the leading lights in the American EV segment. While Ford and General Motors have sold more electric cars in the quarter — 20,962 and 20,092 vehicles, respectively — the Germany-based Mercedes group has led the automakers in the U.S. market with 15%. GM, Ford and Mercedes currently carry a Zacks #4 (Sell), #3 and #2 (Buy), respectively.
There are many other EV makers who are vying for a share of the pie. The Swedish automaker Volvo, for instance, has seen a staggering growth of 650% over its year-ago sales in this quarter. Volvo expects further growth with its new models EX30 and EX90.
In the near term, it will be essential to follow this space to check the emergence of newer, non-traditional automakers that have entered the EV space, not because they were already building cars but with a vision for the future.
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Tesla's (TSLA) EV Market Share Comes Down to 50% in Q3
Tesla, Inc.’s (TSLA - Free Report) market share in the U.S. electric vehicles (EV) segment has come down to 50% in third-quarter 2023 from a much-vaunted 62% in the first quarter. EVs have been rapidly gaining ground since the pandemic years, and sales in the United States rose for the 13th straight quarter, as reported by Cox Automotive on Thursday. It is becoming abundantly clear that EVs are here to stay, and demand is rising by the day. Consumers are gradually shifting from cars run on fossil fuels to their environment-friendly alternatives.
The latest quarterly estimate shows a record 313,086 electric cars sold from July to September, breaching the 300,000 mark for the first time in the third quarter. EVs now account for 7.9% of total auto sales in the United States, up from 6.1% a year ago and 7.2% from the second quarter.
One of the biggest drivers of this growth in sales and rise in market share has been the slashing in prices led by Tesla. EV prices are down 22% from a year ago, and the average price paid in September was $50,683. Tesla models have been ahead of the market in cutting prices, with its current starting price at $38,880. High levels of inventory have also helped drive sales.
Even as Tesla’s market share comes down from its first-quarter peak, it is nonetheless expected that with the launch of its much-awaited electric pickup vehicle Cybertruck, the Elon Musk-led automobile giant can reverse the downward trend. Tesla currently carries a Zacks #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford Motor Company (F - Free Report) , General Motors Company (GM - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) are three other automobile majors that have emerged as the leading lights in the American EV segment. While Ford and General Motors have sold more electric cars in the quarter — 20,962 and 20,092 vehicles, respectively — the Germany-based Mercedes group has led the automakers in the U.S. market with 15%. GM, Ford and Mercedes currently carry a Zacks #4 (Sell), #3 and #2 (Buy), respectively.
There are many other EV makers who are vying for a share of the pie. The Swedish automaker Volvo, for instance, has seen a staggering growth of 650% over its year-ago sales in this quarter. Volvo expects further growth with its new models EX30 and EX90.
In the near term, it will be essential to follow this space to check the emergence of newer, non-traditional automakers that have entered the EV space, not because they were already building cars but with a vision for the future.