Tesla’s share of US electric vehicle market falls below 50% for the first time

EleonJuly 10, 2024

6 2 minutes read

Tesla’s share of US electric vehicle market falls below 50% for the first time

Stocks rally extends to 10th consecutive session

Key points to remember

Tesla’s share of U.S. electric vehicle sales fell below 50% for the first time in the second quarter of 2024, according to Kelley Blue Book.
During the second quarter, sales of electric vehicles in the United States reached a record high, increasing 11.3% over the previous year.
Tesla shares closed Tuesday as the best-performing stock in the Nasdaq Composite, extending its recent rally for a 10th straight day.

You’re here (TSLA) The share of electric vehicle sales in the U.S. fell below 50% for the first time, with EV sales hitting a record high, a new study showed. Shares of the electric vehicle maker continued their strong run Tuesday, ending in the green for a 10th straight day.

Kelley Blue Book’s second-quarter electric vehicle sales report showed Tesla’s U.S. sales fell 6.3%, while overall electric vehicle sales hit a record high.

“Increased competition is leading to continued pressure on prices, which is helping to slowly advance the adoption of electric vehicles,” said Stephanie Valdez Streaty, director of Cox Automotive Industry Insights.

Competition among electric vehicle manufacturers is intensifying

Companies such as General Motors (DG), Ford (F), Hyundai and Kia contributed 330,463 units to U.S. quarterly electric vehicle sales, an 11.3% increase from a year earlier, according to Kelley Blue Book. Electric vehicles accounted for 8% of total U.S. sales during the period, up from 7.1% in the first quarter and 7.2% a year earlier.

Total sales volume was dragged down by lower sales at some European luxury carmakers, including Mercedes-Benz, Polestar (PSNY), Porsche and Volvo, according to Kelley Blue Book.

“As Tesla’s sales continue to decline, with its share of electric vehicle sales now below 50% for the first time, the overall competitive landscape for electric vehicles is intensifying further,” Valdez Streaty said.

Tesla stock rally continues

Tesla’s stock rally gained momentum last week after the company reported better-than-expected second-quarter delivery figures, news that helped push the stock back into positive territory for the year.

The rally could also be supported by anticipation of an update on Tesla’s robotaxi, expected in early August.

Tesla gained 3.7% Tuesday to close at $262.33, making it the best-performing stock in the Nasdaq Composite and one of the best in the S&P 500. The stock has gained 44% during its 10-session winning streak.