Auto report shows surge in EV sales as Tesla’s market share shrinks

According to a report from Cox Automotive released on Thursday, 3Q saw a notable surge in electric vehicle sales, surpassing 300,000 units in the United States. However, Tesla (NASDAQ:), the dominant player in the industry, experienced a drop in its market share to its lowest point on record.

Tesla’s market dominance has shrunk to 50%, down from the 62% the company commanded in the 1Q.

This shift occurred despite Tesla, led by Elon Musk, initiating a price war in an effort to strengthen its position in the competitive EV market.

Nevertheless, there is potential for the company to reverse this decline as it prepares to introduce its Cybertruck electric pickup truck. Market research experts suggest that the launch of the Cybertruck, slated for the current quarter, may help Tesla regain lost ground in the market.

In response to challenging market conditions driven by surging inflation and increased lending expenses, rival automakers have been taking steps to lower their prices, as they strive to catch up.

“Higher inventory levels, more product availability, and downward pricing pressure have helped spur continued linear growth of EV sales in the U.S. market,” the report said.

According to the Cox Automotive report, Tesla’s price war has forced the average EV prices down to $50,683 in September, down from $52,212 in the prior month.

EV sales surged by nearly 50% in the 3Q, compared to the same time last year, making up a record 7.9% of total car sales, according to the report.

Rivian Automotive (NASDAQ:) exceeded expectations by delivering more cars in the third quarter and confirmed its goal to produce 52,000 vehicles for the year.

Tesla, on the other hand, missed its delivery estimates for the 3Q due to a halt in production to upgrade their factories for a new Model 3.

Shares of TSLA and RIVN are down 1.87% and 0.65% respectively in afternoon trading on Thursday.