US electric vehicle (EV) sales have hit a new high, crossing the 300,000 mark in Q3. But it’s not all smooth sailing for Tesla, the industry’s top dog.
According to a Cox Automotive report, Tesla’s market share has slipped to its lowest ever, now commanding just half the market, a significant drop from its 62% stronghold in Q1.
Despite Tesla igniting a price war to cement its position, other automakers are hot on its heels, slashing prices to counter the challenging demand environment fueled by high inflation and soaring borrowing costs.
“Higher inventory levels, more product availability, and downward pricing pressure have helped spur continued linear growth of EV sales in the U.S. market,” Cox noted.
The price war has seen average EV prices tumble to $50,683 in September, down from $52,212 the previous month. Q3 EV sales soared nearly 50% YoY, accounting for a record 7.9% of total industry sales.
Rivian Automotive is revving up, delivering more cars in Q3 than anticipated, and sticking to its annual production target of 52,000 vehicles.
Tesla, on the other hand, fell short of Q3 delivery estimates due to planned factory upgrades for the new Model 3 version, causing production to hit the brakes.
Canalys, an industry analysis firm, pointed out earlier this month that while Tesla remains the big cheese in the US, there’s a growing appetite for a broader range of EV options.
This shift in consumer interest could potentially spark a power shift in the electric arena. It means more businesses can participate in the industry, which could further drive prices down.
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