Tesla is losing market share of electric vehicles in the US but gaining share in the luxury market, now outselling Mercedes-Benz
Tesla’s share of the overall electric vehicle market in the United States – the part of the electric vehicle market it dominates – is shrinking; but its share in the luxury segment is growing, according to research firm Experian.
The Silicon Valley automaker’s share of the overall U.S. electric vehicle market fell from 79.5% during Q2 2020 to 66.3% during the same period in 2021, according to Trends Report. Experian Automotive Market: Report Q2 2021.
That happened as EV registrations increased. The report said that between January and June 2021, electric vehicles accounted for 2.4% of all new vehicle registrations. That’s a small amount, but still represents 117.4% growth year-over-year, according to the report.
New electric vehicle registration numbers by brand – Comparison between January and June of years – Experian Automotive
Much of that growth, however, was generated by other automakers. The report says Audi, Chevrolet, Ford and Nissan all posted year-over-year growth in electric vehicle sales.
Among luxury brands, however, Tesla’s position seems to be getting stronger as demand for electric vehicles grows. It beat Mercedes-Benz for number three in new US luxury car registrations as of September.
While electric vehicles are still a tiny fraction of the total US new car market, luxury brands still need more vehicles to meet future emissions standards and address the competitive threat posed by EVs. Tesla caused and is likely to be a flurry of electric vehicle startups that retail luxury models.
2022 Mercedes-Benz EQS driving for the first time (EQS 580)
Mercedes recently launched its EQS flagship sedan, and plan to follow that with the entry-level EQE sedan, as well as the EQS and EQE SUV. The SUVs will be produced at Mercedes’ Tuscaloosa, Alabama plant beginning in late 2022. The EQC SUV, formerly designed for the US and later cancelled, seems to be back too. However, it won’t appear here until 2025, in a redesigned second-generation form.
2023 Mercedes-Benz EQE
Other traditional luxury automakers, such as Audi and Porsche, have also begun adding electric cars to their lineups. BMW is in the EV push, although it’s not targeted Range 400 miles or more needed to challenge Tesla directly. Even Lexus, which has already resisted battery-powered vehicles, plans to launch one in 2022.
While, Lucid and Rivian recently started delivering the Air sedan and R1T pickup truck. They will be the first real test of whether another startup can replicate Tesla’s success and compete with legacy automakers.
