Despite a 23% decline in its U.S. sales to 39,800 in November, Tesla Inc. (NASDAQ: TSLA) still has the best-selling electric vehicle (EV) model in the United States by far. According to Experian, the Model Y had 30% of all EV sales in the third quarter of this year. Tesla also has the number two spot with the Model 3, which had a 10% market share.
The data also show the small but steady market share gains by other car companies. The Chevy Equinox and the Hyundai IONIQ 5 each had about a 5% market share. No other EV model sold in the U.S. had a bigger market share. However, 10 models from various manufacturers have market shares of 2% or greater. That shows how fragmented the EV market is.
In November, EV sales nationwide fell 41% year over year. That makes the problems of legacy car companies, which have entered the market in the past five years, more dire than they have been since EVs became mainstream. They have tiny shares of a rapidly shrinking sector.
One conclusion to draw from the Cox data is that financial losses for EV companies are likely to remain high, even if these car companies slash their EV investments. Profits are years away.
The Model Y SUV is modestly priced by industry standards. Its entry rear-wheel-drive version has a manufacturer’s suggested retail price (MSRP) of $37,990. Tesla has said it may introduce a $25,000 sedan, which much of the industry thinks is the necessary price point for wide U.S. EV adoption. Nevertheless, Model Y’s price is well below the industry average EV price near $58,000.
If $25,000 is the price point for wide EV adoption, Tesla, and virtually all of its competition, are priced much too high.
Tesla Stock Price Prediction and Forecast 2025–2030
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