Tesla Inc. (NASDAQ: TSLA) cannot get a break anywhere. Its U.S. market share has dropped to about 45% from a figure closer to 80% a decade ago. Legacy car companies, including Ford, GM, and Hyundai, have each taken small shares of the electric vehicle (EV) market, and together they now hold over 25%.
Quick Read
- Tesla Inc.’s (NASDAQ: TSLA) share of the U.S. EV market has dropped, and it is in seventh place in China, the world’s largest EV market.
- There is no single, easily fixable reason for Tesla’s troubles.
- Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better; learn more here.
Tesla sales, and all EV sales, in the United States jumped in the third quarter as people rushed to get the EV tax credit of $7,500. Yet, Tesla profits were down due to reduced prices. And, now that this credit is gone, EV sales are expected to plunge.
Tesla’s unit sales in most EU countries decline month after month, due to increased competition, an aging lineup, and backlash from the political activism of CEO Elon Musk. There is no single sign that the decline will improve. Once again, legacy car companies in Europe are picking up a growing but modest part of the EV market.
The story is different in China, the world’s largest EV market. By some estimates, there are over 100 EV brands there. This has triggered a price war that has even affected the financial results of market leader BYD. Some EV companies have been slow to pay suppliers, and it is expected that some of the smaller manufacturers will soon go out of business.
In October, Tesla shipments in China dropped 9.9% year over year to 61,497. That puts its market share in seventh place, and well behind market leader BYD.
It is hard to put a finger on why Tesla’s deliveries in China are poor. Some say that Tesla has not had new models recently. Some say its cars lack the level of connectivity that others have. Others say Tesla is behind in the self-driving space.
There is no single reason for Tesla’s trouble in China. However, it appears that the U.S. company has a long way to go to solve it.
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