The latest data on U.S. electric vehicle (EV) registrations from January to October 2023 reveals a notable slowdown in Tesla’s market share growth. While Tesla still dominates, the competition is gaining momentum, especially from newer entrants like Rivian.
Market Share Snapshot: Rivian’s Surge and Luxury Brands Among the brands with over 1% market share, Rivian, a relatively newer player, has shown substantial growth. Luxury brands like BMW and Mercedes-Benz have also experienced surges, quadrupling and tripling their EV sales, respectively.
Tesla’s Market Share Growth and Global Trends While Tesla’s market share growth has slowed, it remains a significant player. The global trend of EV market share reaching 25% after passing the 5% threshold has been observed in various countries. However, the U.S. market’s trajectory appears more gradual, possibly influenced by economic factors.
Factors Influencing U.S. EV Adoption: Economic Environment Americans are facing challenges such as higher living costs and soaring interest rates, influencing a preference for lower-cost new vehicles. This shift has affected the adoption of pricier EVs, contributing to the slower-than-expected mass adoption in the U.S.
Positive Signals: Healthy Demand Amid Slowdown Despite the minor slowdown in overall EV adoption, the data highlights brands and companies that continue to surge and experience healthy demand. Rivian, in particular, stands out as a promising player heading into 2024, aiming to be gross-profit-positive and benefit from sustained demand.
Conclusion: Optimism for Rivian in 2024 Investors should view the minor slowdown in EV adoption as a temporary hurdle influenced by external factors. The positive news is the resilience and growth of brands like Rivian amid the economic challenges, signaling a promising outlook for the company in the coming year.