The Clap
Tesla (NASDAQ:TSLA) is seeing growing competition in the EV market in the US, posing a threat to the company’s market share.
What
The EV powerhouse continues to boast the lion’s share of the market, but as more affordable EVs begin to populate the market, that may begin to change, especially given the changing consumer behavior.
The company’s market share is 65% as of Q3 2022, down from 71% in 2021 and 79% in 2020. There is an evident decline in market share, with analysts estimating that Tesla’s market share will be no more than 20% by 2025.
So What
The introduction of new, affordable EVs to the market threatens Tesla’s position. Tesla’s cheapest model, the Model 3, has a starting price of around $50,000, more expensive compared to other EVs now available in the market.
Now What
Tesla is working on a newer model for the Model 3 that will aim at cutting production costs, offering a more affordable model to customers.
