Tesla's Market Dominance Diminishes as More Affordable EVs Become Available

Contributors' opinions are their own.

According to an S&P Global Mobility report,Tesla is still the leading electric vehicle maker in the U.S. It may not last for long as the company's prices are being lowered by competitors.

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The market share of newly registered electric vehicles in the U.S. was less than it was in the previous year. According to the S&P forecast, the EV market share ofTesla will fall from 48 today to less than 20% by the year 2025, with as many as 159 EV available.

S&P said, "As new, more affordable options arrive, offering equal or better technology and production build, the position ofTesla is changing."

"Tesla's ability to retain a dominant market share will be challenged going forward, given that consumer choice and consumer interest in EV is growing."

According to Fortune, the associate director of S&P said that the company wouldn't lose sales even if it lost market share. Brinley said that the EV market will remain so long as competitors are bound by production capacity.

As consumer-friendly competitors like Ford and Chevrolet begin to crank up their EV assembly lines,Tesla will find itself up against luxury car competition with the likes of BMW and Mercedes-Benz.

After owning gas-powered Hondas and Toyotas, new EV buyers tend to switch to electric. According to Fortune, Brinley said that the largest share of electric vehicles was owned byTesla.

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