U.S. electric vehicle sales jumped to more than 300,000 for the first time in the Q3, though the industry leader Tesla’s market share slipped to the lowest on record, as per a report by Cox Automotive showed on Thursday.
U.S. EV market showed record high sales where earlier Tesla held the chuck of market share. Tesla now dominates just half of the U.S. EV market. This is down from the 62% it held in the first quarter in the U.S. EV market, despite a price war started by the Elon Musk-led company to solidify its foothold in the competitive EV arena.
U.S. electric vehicle sales high
Though Tesla’s Q3 EV sales are lower, the company could reverse the downward trend with the launch of its Cybertruck electric pickup truck, which is set to be delivered to customers in the current quarter, the market research firm said.
Playing catch-up, other automakers have been aggressively cutting prices to counter a tough demand environment triggered by high inflation and rising borrowing costs to increase U.S. electric vehicle sales.
“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 said.
The price war started by Tesla has brought average EV prices down to $50,683 in September, down from $52,212 in the prior month, Cox added.
Q3 EV sales
Total U.S. electric vehicle sales for the Q3 rose nearly 50% from a year ago, and accounted for a record 7.9% of total industry sales, the report showed.
Q3 EV sales of Rivian Automotive (RIVN.O) has sold more cars than analysts expected and reiterated its annual production target of 52,000 vehicles.
Tesla market share declines
Tesla, meanwhile, missed market estimates for deliveries in the third quarter as planned upgrades at its factories to roll out a newer version of the Model 3 mass-market sedan forced production halts for U.S. EV market.
Industry analysis firm Canalys said earlier this month that while Tesla is dominant in the United States, there is an increasing demand for a wider range of EV options to satisfy the growing interest in electric vehicles.
Stock update
Tesla stock drops today 1.57% to $258.87, on what proved to be an all-around dismal trading session for the stock market, with the NASDAQ Composite Index COMP falling 0.63% to 13,574.22 and Dow Jones Industrial Average DJIA falling 0.51% to 33,631.14.
