Tesla Market Share in Jeopardy?
Tesla’s base Model 3 starts at nearly $50k while the popular Model Y starts above $65k. At these price points, Tesla is starting to lose market share to competitors that can deliver below that $50k threshold. Rivals include the Ford Mustang Mach-E and Hyundai Ioniq 5. Vehicles that have been on the market for years such as the Chevy Bolt and Nissan Leaf start below $30K.
“Tesla’s position is changing as new, more affordable options arrive, offering equal or better technology and production build,” S&P Global said. “Given that consumer choice and consumer interest in EVs are growing, Tesla’s ability to retain a dominant market share will be challenged going forward.” Tesla’s EV market share in the U.S. has fallen from 79 percent in 2020, and it is expected to fall below 20 percent by 2025, S&P Global said.