Tesla is still #1 in US & EU in market share but is losing market share. Tesla is #2 in China but its market share is on the decline.
Tesla is still selling beaucoup number of EVs.
Tesla’s share of the EV market fell to 49.7%. This is the first time Tesla’s U.S. EV market share has fallen below 50%. The figure is down significantly from 60% in Q1 2023, and 79% of U.S. EV market share in 2020.
Tesla: Despite a drop in May, Tesla remains the market leader with a 10.5% share, followed by BMW at 10.3%.
BYD-22% China market share
Tesla 13.2% China market share
I suspect BYD’s market share is falling in China also. But they remain a dominant player there.
So why are dominant EV manufacturers are losing market share?
It’s the competition. Quite a few new EVs entered the market place in 2024 and even more will be entering in 2025.
BYD has a market capitalization of $100 billion
Tesla has a market capitalization of $734 billion.
TSLA 98 p/e
BYD 23 p/e
Are TSLA & BYD fairly valued? Overvalued? Undervalued?
Which would be the better investment today?
Warren Buffet bought a 10% stake in BYD that has worked out for him.
But he has been selling off his BYD locking in capital gains for the past 2 years.
Say Tesla sells one EV, the only EV. 100% market share.
Next month Tesla sells four EVs and BYD sells one. Tesla’s market share drops to 80% despite a four fold increase in revenue. How useful is that market share data?
The above is a growth situation. Once a market is saturated, market share numbers do make sense. What this means is that they should not be reporting EV market share but total car market share.