Analysis by Morgan Stanley shows that Tesla’s share of the US EV market fell to 69% in February from 81% a year ago.
According to this analysis, Tesla’s US sales are still rising due to the growing appetite among US car buyers for electric vehicles. Morgan Stanley estimates that U.S. sales of electric cars rose 34% in February from a year earlier, even though sales of internal combustion engine vehicles fell 5.4%, according to the analysis.
Tesla (TSLA) reports only quarterly global sales, not monthly or US sales, just like many other automakers. According to Morgan Stanley’s analysis, Tesla likely saw a 5.4% increase in U.S. sales in February.
The new electric offering from traditional car manufacturers has resulted in the combined sales of US EVs more than doubling to 9,527 vehicles. And Ford’s Mach-E, which achieved SUV of the year this year and began deliveries at the end of January, made up 3,739 February sales, according to figures from Ford (F).
“Mach-E was almost 100% of the [Tesla] share loss, ”Morgan Stanley, Morgan Stanley’s car analyst, said in a note earlier this week.
Other experts have said they also believe Tesla is losing some of its share of the EV market.
“We’ve been expecting this for a while now,” said Michelle Krebs, senior analyst at AutoTrader. “Tesla was the only game in town. Now that’s not the case. We expect Tesla’s sales to increase as the market increases, but some of Tesla’s market share will also be stolen.”
A Ford spokesman declined to comment directly on Morgan Stanley’s analysis. The company did say that 70% of Mach-E buyers were new to Ford, making the car so much more valuable to the carmaker. More than 20% of Mach-E sales come from California, where Tesla is particularly popular.
Tesla is facing competition from carmakers such as Porsche, BMW, Audi and Jaguar for its luxury Model S sedan and Model X sports utility vehicle, along with competition from Chevrolet, Hyundai, Kia, Volkswagen, Nissan and now Ford for its lower price Model 3- sedan Model Y SUV.
But Model 3 and Model Y are now the backbone of Tesla’s sales, accounting for about 90% of its global sales in the fourth quarter.
Tesla did not respond to a request for comment on the Morgan Stanley analysis.
Tesla has already fallen behind Volkswagen (VLKAF), the world’s number 2 automaker, in electric vehicle sales in many European markets, including Norway, where EVs now account for the majority of new vehicle sales.
And this is due to new competition from General Motors (GM), which has just launched a compact SUV version of its US EV, the Chevrolet Bolt. The Bolt EUV will go on sale by early summer, along with a new version of the current Bolt hatchback. Both will be priced under the Model 3 and Model Y.
And this is just the beginning of a spate of new motor vehicles that the traditional car manufacturers have promised in the coming years. Volvo announced this week that it will only offer electric vehicles by 2030, while Ford has said it will only sell electric passenger vehicles in Europe by 2030.
The aggressive targets on electric vehicles are being driven by stricter environmental regulations around the world, as well as the growing appetite for EVs among buyers.
And although motor vehicles are now more expensive to manufacture than comparable petrol engines, the improvement in economies of scale is likely to reduce the cost of spare parts, including the large batteries. it cheaper and therefore more profitable to build EVs. Electric vehicles have fewer moving parts, and according to an estimate by Ford, they require 30% fewer hours to assemble than traditional cars.
.Source
Related
