Tesla controls over 80% of the US electric vehicle marketAugust 28, 2020
Analysts from Buy Shares announced the new success of Elon Musk’s company. Despite the fact that Tesla did not disclose the number of electric vehicles sold and total shipments on a monthly basis, the authors of the portal found that Tesla accounted for more than 81.66% of electric vehicles sold in the United States in the first half of 2020. According to Electrek, Tesla’s leadership position seems especially surprising when you consider that the automaker lost its tax break at the end of 2019.
During the first six months of this year, more than 87,000 electric vehicles were sold in the United States, 71,000 of them under the Tesla brand. Moreover, Tesla took the first three lines of the rating of the best-selling electric vehicles with Model 3 – 38 thousand, Model Y – 18 thousand, and Model X – 9.5 thousand. Next comes the affordable Chevy Bolt from Chevrolet and another Tesla car – Model S.
That being said, Tesla customers do not have access to the $ 7,500 federal tax credit. Under US law, buyers receive a $ 7,500 discount on electric vehicles from a company that has sold no more than 200,000 vehicles. Tesla crossed this mark in mid-2018, after which the tax was cut to $ 3,750, then in 2019 the discount was reduced to $ 1,875 and by the beginning of this year the company completely lost the subsidies from the state, which stimulated sales of its electric vehicles.
Buy Shares attributed Tesla’s success to several factors. Firstly, Musk’s company has a high level of market capitalization, which leads to trust from investors and, consequently, buyers. Second, Tesla has revolutionized the electric vehicle industry, Buy Shares write. Tesla’s engineers made electric vehicles commercially viable and pioneered infrastructure development, namely fast charging stations for energy efficient batteries.
And the last, most common point, was Tesla’s reputation. CEO Elon Musk is the “face” of Tesla, regularly gives interviews, promotes the idea of electrification of transport, and also runs SpaceX, Neuralink and the Boring Company, so Tesla is always heard and is associated with progress in general.
However, the situation on the electric vehicle market may soon change dramatically. Leading carmakers, including Ford, Volkswagen, Audi and Daimler, have planned a series of big announcements later this year and early next year and are set to start taking market share away from Musk.
As for Tesla, the company representatives are optimistic. At the end of the second quarter, the company announced that global deliveries of its electric vehicles exceeded 90,000 units, higher than analysts’ expectations, and now the automaker says it plans to sell more than 500,000 vehicles by the end of 2020.
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