Tesla's global Electric Vehicle (EV) deliveries have declined for two consecutive quarters, a trend reflected in the US market.
In the second quarter of 2024, Tesla's US EV market share fell below 50% for the first time, dropping to 49.7% from 59.3% in the same period last year. However, overall US EV sales grew by 11.3% year-on-year during the same period.
Interestingly, it's not Chinese automakers eroding Tesla's US market share, but rather General Motors (GM), Ford, and South Korean manufacturers Hyundai Motor and Kia. This development highlights that pressure on Tesla's sales isn't solely coming from Chinese EVs.
Shifting Landscape in the US EV Market
According to research firm Cox Automotive, as reported by The New York Times, Tesla still leads US EV sales despite its market share dropping below 50%. Tesla reported a 4.8% year-on-year decrease in global sales for the second quarter of 2024, with approximately 444,000 units delivered. Cox estimates that Tesla's US sales declined by 6.3% to 164,000 units in the same quarter.
Overall, US EV sales increased by 11.3% year-on-year in the second quarter of 2024, indicating steady demand for electric vehicles in the American consumer market, albeit at a slower growth rate compared to the 40% surge seen in 2023.
Cox reports that total US EV sales reached 330,500 units in the second quarter of 2024, surpassing the previous record set in the second quarter of 2023 and showing significant growth from the first quarter of 2024. EVs now account for 8% of total US auto sales, up from 7.1% in the first quarter of 2024 and 7.2% in the same period last year.
The growth in US EV sales, coupled with Tesla's declining market share, is largely attributed to strong performances from GM, Ford, Hyundai, and Kia. European brands such as Mercedes-Benz, Porsche, and Volvo also experienced declining EV sales in the US, suggesting that initial demand for high-end EVs may be saturating, with mainstream consumers leaning towards more affordable models.
Cox analysts suggest that increased market competition and ongoing price pressures are contributing to the gradual rise in EV adoption rates across the US.
