Tesla vehicles are stored at a shopping mall parking lot near a closed movie theater Friday, June 21, 2024, in Scottsdale, Ariz. According to a new report from Cox Automotive, Tesla’s share of that market dipped below 50% in the second quarter for the first time. The company held 49.7% of EV sales in Q2 compared with 59.3% in the same period last year.
The dip in market share comes after Tesla reported it exceeded quarterly sales expectations but failed to improve on year-over-year vehicle sales, marking the first time the firm had such a drop for two straight quarters. While experts have pointed to declining demand for EVs in the U.S. as the reason for Tesla’s struggles, demand has rebounded from its steep decline in 2023. Still, increased competition from established automakers has cut into Tesla’s market share.
For years Tesla enjoyed a privileged position in the electric car market, pushing its expensive and unique EVs onto luxury consumers and building a dedicated fan base. Over the past few years, as the company’s share of the market has slowly dwindled, Tesla launched its autopilot and Full Self-Driving programs. While the autopilot technology remains groundbreaking for the consumer market, highly publicized collisions involving the technology have worried customers and caught the attention of federal regulators.
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