Competing brands are catching up with Tesla, and it is reducing its market share in the US

The US-based car brand Tesla is still the number one in the domestic market, but its share is rapidly declining. During the first three quarters of this year, Tesla has reduced its market share to 65%. A year ago, it was 71%, and in 2020, it was 79%. By 2025, the share of this carmaker is expected to be even lower than 20%.

While some loss of market share was expected, the pace of decline can be worrying, especially for investors. The company’s stock has fallen by almost half this year. Elon Musk, the owner of this car brand, has been focusing more on his other company, Twitter. This is causing investors to worry if Elon Musk is rushing to focus on running Tesla.

Tesla could lose its lead in the American market and be replaced by electric cars that are cheaper. Tesla’s competitors sell their electric vehicles for less than $50,000, with the cheapest Tesla available for $48,200, without the equipment.

According to S&P Global Mobility, Tesla is changing its position as customers prefer newer and more affordable models, which often have better technology, and it will become increasingly difficult for Tesla to maintain its leadership.

However, Tesla has begun work on a new version of an electric vehicle with which they would like to reduce production costs. The new electric car, the Model 3, should be smaller and more affordable than other Tesla models.

The electric car market is not big yet. There are over 10 million registered cars on the road in the United States, and of those, electric cars make up only about 5%, up from 3% last year. The good news is that classic car brands, thanks to Tesla’s success and government incentives, have decided to get into the industry.