In the U.S. EV market, rivals are eroding Tesla’s market share.

However, data gathered by S&P Global Mobility reveals that during the first nine months of this year, Tesla TSLA, -1.14% still held a 65% share of the expanding electric vehicle market.

According to Stephanie Brinley, an associate director for S&P, its share fell to 71% in 2021 and has since been declining.

S&P Global Mobility said in a statement on Tuesday that “Tesla’s position is changing as new, more affordable options arrive, offering equal or better technology and production build.”
Electric vehicle market share in the United States increased by 2.4 percentage points this year, to 5.2% of all light vehicle registrations, according to S&P. Approximately 65%, or 340,000, of the 525,000 electric vehicles registered during the first nine months of the year were Teslas, according to S&P.

Despite having a smaller market share, Tesla’s sales will continue to rise as consumer interest rises, according to Brinley. “Tesla will continue to dominate the EV market in 2022 as long as competitors are constrained by production capacity,” she said.

Many rivals, including Ford F, +0.15%, General Motors GM, +0.94%, Hyundai 005380, +0.90%, Kia, and Volkswagen VOW, +0.53%, are unable to operate their factories at full capacity in order to meet demand due to a shortage of computer chips and other parts.

Additionally, BMW competes with Tesla at the premium end of the market. BMW, +1.57%, Mercedes-Benz MBG, +1.67%, Audi, Polestar PSNY, +3.48%, Rivian RIVN, +0.73%, Lucid LCID, -0.91%, and other manufacturers are also mentioned.

S&P stated that Tesla’s light-vehicle model lineup in 2025 will be the same as it is now, with the exception of the Cybertruck pickup truck that will be unveiled next year and a new Roadster that will be released at an undisclosed time.

Additionally, S&P discovered that the majority of consumers who have purchased battery-electric vehicles so far this year previously owned Honda HMC, -0.45% and Toyota TM automobiles. Both companies produce fuel-efficient internal combustion and hybrid vehicles, but EV adoption in the United States has been sluggish. Honda won’t have any models until 2024, whereas Toyota has just one.

More than half of all electric vehicle registrations were for Tesla’s Model Y small SUV and Model 3 small sedan, according to Brinley. The Chevrolet Bolt sedan and SUV, the Hyundai Ioniq 5, the Kia EV6, the Volkswagen ID.4, and the Nissan Leaf completed the top 10.