Tesla’s dominance in the U.S. electric vehicle (EV) market has taken a hit, with new reports revealing that the company’s share has dropped below 50% for the first time. Once the undisputed leader in electric cars, Tesla now faces increasing competition from established automakers, with General Motors, Ford, Hyundai, and Kia gaining ground.
A New Era of Competition
In the second quarter of 2024, Tesla accounted for just 49.7% of all EV sales, down from 59.3% the previous year. This marks a significant shift, as Tesla once led the market almost single-handedly since the introduction of the Model S in 2012. While sales of electric vehicles surged by 11.3%, traditional automakers have caught up, offering EVs that match or surpass Tesla’s performance, such as a 300-mile range and competitive pricing.
As more than 100 electric models hit the U.S. market, car prices have become more accessible, broadening the appeal of EVs. Tesla’s aging lineup, particularly the Model Y, which debuted in 2020, may also be contributing to its slipping market share. On top of this, some consumers are now choosing electric cars from manufacturers with well-established service networks, like Ford and BMW, over Tesla’s online-only approach.
With strong competition and a rapidly growing EV market, Tesla’s grip on the U.S. electric car market is slipping, signaling a new chapter in the evolution of the industry.
