Declining Tesla sales and declining Tesla market share
Taking advantage of this opportunity to increase demand in the U.S.
What are the auto brands?
Tesla, a leader in the EV market, is experiencing a slowdown. According to Cox Automotive, a firm specializing in automobile market research, Tesla’s share of the U.S. EV market dropped to 49.7% in the second quarter of this year, marking a decline of about 10% from the previous year. This is the first time Tesla’s quarterly market share has fallen below 50%.
In the same quarter, Tesla’s sales decreased by 6.3% year over year. Elon Musk reported receiving 175,000 units, a figure derived from Tesla’s global sales data. After a significant sales dip in the first quarter, Musk has little time to dwell on these challenges. Meanwhile, competitors such as Hyundai, Subaru, and Ford are seizing the opportunity to amplify their presence in the U.S. EV market.
Hyundai and Kia are offering
Special Lease Discounts
Hyundai Motor America is conducting a special promotion for EV leasing until July 31. The 2024 Ioniq 5 is available for $259 per month. Considering the deposit of $3,999 and the annual driving distance of 10,000 miles, the actual monthly lease cost is about $380.
Kia conducted a leasing-related promotion until July 8. The lease price of the 2024 Niro EV was lowered by $50, offering it at $199. Considering various factors, including the $3,999 deposit, the actual monthly lease cost is $336. Kia’s promotion has ended, but the company plans to take a closer look at the response from the U.S. EV market and decide whether to extend the event again.
Subaru also offers discounts on lease price
Ford offers purchase benefits
Similar to Hyundai and Kia, Subaru also offers limited-time special lease discounts. Until the end of July, the monthly lease price for the 2024 Solterra is $329. The deposit is $329, the same as the lease cost. The actual monthly lease cost is around $338.
Ford will offer deep discounts on popular models in the U.S. Through a special discount event this summer, the Mustang Mach-E will be available in trims ranging from $39,995 to $59,995. The F-150 Lightning is $62,995 to $9,995. It attracts consumers’ attention as it includes various benefits such as interest-free for 60 to 72 months and retail bonus cash benefits.
Sales volume decline for three consecutive quarters
What is the reason for Tesla’s slump?
There are two main reasons for Tesla’s sales volume, which has declined for three consecutive quarters. The first is CEO risk. Elon Musk publicly supported former President Trump and received unfavorable attention from progressive consumers. California, which accounts for one-third of all EV sales in the U.S., is the stU.S.nghold of the progressive Democratic Party. A CEO’s political comments can affect sales.
The second reason is that the EV market itself is slowing down. Consumers who realize the various limitations of EVs are moving toward hybrids. In addition, as the possibility of Trump winning the presidential election grows, the fact that many automaker brands feel the burden of diving deeper into EVs has also contributed to slowing down the EV market. The attention of the automobile industry is focused on how Tesla, which is mired in a slump, will overcome the crisis.
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