US electric vehicle sales reach a new record high, Tesla's market share is being eroded.
Tesla has initiated a price war to solidify its position in the fiercely competitive electric vehicle market. However, Tesla currently only holds a 50% market share, which is lower than the 62% in the first quarter.
According to the information obtained from the Zhitong Finance APP, a report released by Cox Automotive on Thursday showed that in the third quarter of this year, electric vehicle sales in the United States exceeded 300,000 vehicles for the first time, but market leader Tesla's market share dropped to its lowest level on record.
Despite Elon Musk-led Tesla (TSLA.US) launching a price war to consolidate its position in the fiercely competitive electric vehicle market, Tesla currently only holds half of the market share, lower than the 62% in the first quarter.
However, the market research company stated that with the launch of the Cybertruck electric pickup truck, the company may reverse this downward trend, and the pickup truck will be delivered to customers this quarter.
In order to catch up, other automakers have been aggressively lowering prices to cope with the challenging demand environment caused by high inflation and rising borrowing costs.
Cox stated, "Higher inventory levels, more product supply, and downward price pressure have helped stimulate the continuous linear growth of electric vehicle sales in the US market."
Cox added that Tesla's price war reduced the average price of electric vehicles in September from $52,212 in the previous month to $50,683.
The report shows that electric vehicle sales in the third quarter increased by nearly 50% compared to the same period last year, accounting for 7.9% of the total industry sales, reaching a historical high.
Rivian Automotive (RIVN.US) delivered more vehicles in the third quarter than analysts expected and reiterated its annual production target of 52,000 vehicles.
Meanwhile, Tesla's delivery volume in the third quarter fell short of market expectations as its factories were planned for upgrades to launch a new version of the Model 3 mass-market sedan, forcing production to pause.
Industry analysis company Canalys stated earlier this month that although Tesla dominates the US market, the demand for a wider range of electric vehicle choices is increasing as people's interest in electric vehicles continues to grow.