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Tesla’s Share of EV Market in US Drops Below 50% For First Time

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Key Takeaways

  • Tesla’s share of U.S. electric vehicle sales fell below 50% for the first time in the second quarter of 2024, according to Kelley Blue Book.
  • During the second quarter, U.S. EV sales reached a record high, recording an 11.3% increase year-over-year.
  • Tesla stock closed Tuesday as the best-performing stock in the Nasdaq Composite, extending its recent rally into a 10th straight day.

Tesla’s (TSLA) share of electric vehicle sales in the U.S. fell below 50% for the first time as EV sales jumped to a record high, according to new research. The EV maker’s stock, meanwhile, continued its hot run Tuesday, finishing in the green for a 10th straight day.

Kelley Blue Book’s second-quarter EV sales report showed Tesla’s U.S. sales falling by 6.3%, while overall EV sales reached a record high.

Increased competition “is leading to continued price pressure, helping push EV adoption slowly higher,” said Cox Automotive Industry Insights Director Stephanie Valdez Streaty.

EV Maker Competition Heats Up

Companies such as General Motors (GM), Ford (F), Hyundai and Kia contributed to quarterly U.S. EV sales of 330,463, an 11.3% increase year-over-year, according to Kelley Blue Book. EVs represented 8% of total sales in the U.S. during the period, up from 7.1% in the first quarter and 7.2% a year earlier.

Total sales volume was dragged down by lower sales for some European luxury automakers, including Mercedes-Benz, Polestar (PSNY), Porsche, and Volvo, according to Kelley Blue Book.

“While Tesla’s sales continue to decline, with its share of EV sales now below 50% for the first time, the overall electric vehicle competitive landscape intensifies further,” said Valdez Streaty.

Tesla Stock Extends Rally

The rally in Tesla shares kicked into high gear last week after the company reported better-than-expected second-quarter delivery numbers, news that helped push the stock back into positive territory for the year.

The rally also may be supported by anticipation of an update about Tesla’s robotaxi, expected in early August.

Tesla gained 3.7% Tuesday to close at $262.33, making it the top performer in the Nasdaq Composite and one of the best in the S&P 500. The stock has gained 44% during its 10-session winning streak.


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