With new electric vehicles from Ford, GM and others, Tesla’s share of the US EV

With new electric vehicles from Ford, GM and others, Tesla's share of the US EV market has slid.
When Artie R. Williams decided it was time to kick his gas habit, he narrowed his search to three options: the Cadillac Optiq, a Porsche Macan EV and the Polestar 3.  — none of which has been on the market for more than a few months.

Tesla wasn't on the table.

"Nothing against Elon (Musk), but those vehicles have been out for so long," said Williams, a healthcare marketer in Dallas, from the driver's seat of his weeks-old Polestar. "Meanwhile, this thing is new, it's innovative. It had a funky look to it and I knew people were going to be like 'What are you driving?' And I like that."



Sales of electric vehicles climbed to 294,000 in the first quarter of the year, a 10.6% increase compared with the year-earlier period. January through March is a relatively slow time for car sales, nevertheless EVs moved off the lot much more frequently than cars and trucks in general. (Total US auto sales were nearly flat in the first quarter).

EV adoption is cruising along in the US, despite a backlash against the industry's largest player and the Trump administration's push to wind back clean energy incentives and emissions regulations. Interest is spreading from early-adopters to mainstream consumers, from EV evangelists to the EV-curious. Williams, for example, isn't concerned about his personal emissions or climate change. He's just tired of paying for gasoline and oil changes and considers the preponderance of new EVs a better, more reliable form of technology.


The gains came in spite of (and in some cases because of) struggles at Tesla, the country's market-leader for battery-powered vehicles. Tesla sold 1.3 million cars in the quarter, a 9% decline from the year-earlier period. Sales of rival brands, meanwhile, collectively notched a gain of 32%. In two years, Tesla's share of the US EV market has skidded from almost two-thirds to less than half.

A grassroots boycott of the brand in response to CEO Elon Musk's heavy-handed efforts to streamline federal employment drove some of the sales swoon. JPMorgan has characterized the backlash as "unprecedented brand damage."

Tesla net income slid 71% in the first quarter and the company widely missed analyst estimates on revenue. Tesla Chief Financial Officer Vaibhav Taneja said vandalism and hostility were to blame, in part, for double-digit percent declines in vehicle deliveries.

However, there is also a crowd of EV converts that aren't so much put off by Musk as they are attracted to a parade of newer products. Of the 63 or so fully electric cars and trucks on the US market, one quarter weren't available a year ago. The product blitz includes the first EV offerings from Acura, Dodge and Jeep, second models from Mini and Porsche and two more battery-powered machines each from Cadillac and Volvo.

Many of the new EVs are relatively affordable. Cox estimates the price spread between EVs broadly and internal combustion cars and trucks has shrunk to just $5,000. General Motors, meanwhile, plans to resurrect its Chevrolet Bolt later this year with a price point around $30,000.

"We're about giving customers a choice," CEO Mary Barra told Bloomberg. "Over the long term, we think EV demand will grow."

Hayden Jones, a Microsoft retiree in Seattle, loved his two Tesla Model Ys, but traded them both in a few weeks ago. He's come to consider Elon Musk "a bit of a lunatic."

"I was getting post-it notes when I parked," he explained, "and it's a slippery slope from putting a sticker on someone's car and setting it on fire."

Jones said both of his new cars – a BMW iX and a Polestar 3 – seem higher quality than his Teslas and comfortably haul his two massive dogs, a 170-pound Newfoundland and a 70-pound mutt. Polestar knocked $5,000 off as part of a new marketing program to lure Tesla refugees like Jones.

"There's just a lot of competition now," explained Stephanie Valdez Streaty, director of industry insights at Cox Automotive. "And it's not just one make or model that's filling in that (Tesla) gap."

As the electric vehicle market continues to evolve, it's clear that Tesla is no longer the only game in town. With a growing number of options available, consumers are increasingly looking beyond the pioneering brand to find the perfect EV for their needs. Whether it's the sleek design of the Polestar 3 or the affordability of the Chevrolet Bolt, there's an electric vehicle out there for everyone.

In fact, many of the new EVs on the market are specifically designed to appeal to a wider range of consumers. The Cadillac Optiq, for example, is a luxurious SUV with a range of over 300 miles, making it an attractive option for those who want a high-end EV without the Tesla badge. Meanwhile, the Acura EV is a more affordable option that still packs a punch when it comes to performance and features.

As the competition heats up, Tesla will need to adapt to stay ahead of the game. With its market share already slipping, the company will need to find new ways to innovate and attract customers. This could include expanding its product line to include more affordable options, improving its customer service, or even rebranding itself to appeal to a wider range of consumers.

One thing is certain, however: the electric vehicle market is here to stay, and it's only going to get more exciting from here. With new models and brands entering the market every month, consumers have more choices than ever before. And as the industry continues to evolve, it will be interesting to see which brands come out on top.

For now, one thing is clear: Tesla is no longer the only player in town. And as the electric vehicle market continues to grow and evolve, it will be exciting to see which brands emerge as the leaders of the pack.