Tesla: Price Cuts Fail to Retain Market Share

Automotive Author: Xiaoguang Zhang Apr 23, 2023 11:30 AM (GMT+8)

Tesla's price-cutting strategy has failed to significantly improve its global market share. Data shows that Tesla's market share in both the California and mainland China markets has declined.

Reuters estimates that Tesla held 59.6% of the US California electric vehicle market from January to March, the lowest since 2017. Similarly, Tesla's share in the Chinese market fell from 14% in 2020 to 10%, with the price war failing to improve its market share.

Tesla CEO Elon Musk's interest on social media app Twitter and his embrace of the US Republican Party have raised concerns among Pro-Democratic Party consumers in California and other liberal states. Its rivals such as Volkswagen, General Motors, and Kia have increased their market share, according to Reuters.

Tesla was absent from the Shanghai Auto Show this year. Multiple media reports indicate that several new electric car models were released at the show, but Tesla's latest model in the Chinese market still remains the Model Y launched in 2021. BYD, one of China's fastest growing electric vehicle companies, attracted attention with its "Seagull" model, which is less pricey than Tesla's cars. Currently, BYD's market share in China has grown to 20%, twice that of Tesla.

Instead of reflecting on Tesla's price-cutting strategy, Musk has recently focused more on SpaceX launches. Bloomberg reported on April 21 that a group of Tesla investors criticized Musk for diverting his attention to other businesses, causing significant harm to Tesla. Tesla did not respond to this criticism.