Tesla will remain the top electric vehicle seller in the US through at least 2026, according to a BofA Securities report. This is a consequence of lower prices for the manufacturer's cars. The firm sees that this year, General Motors and Ford Motor will be vying for second place behind Tesla.
According to a new report, Tesla will remain the top electric vehicle seller in the US until at least 2026. The company is benefiting from renewed sales growth driven by a string of discounts launched earlier this year. Tesla vehicles should account for 18% of the domestic electric vehicle market this year, predicts BofA Securities analyst John Murphy. The forecast was featured in Car Wars' annual report, according to BNN Bloomberg. The analyst believes that General Motors Co. and Ford Motor Co. will compete for second place with a share of approximately 14% each, followed by Stellantis NV with 8%.
The updated forecast shows a correction of the opinion Murphy voiced last year. At that time, he predicted that GM and Ford would overtake Tesla in domestic sales as early as 2025. The latest report says that the situation has changed due to Tesla's price cuts. The company has shown a willingness to earn lower profits while maintaining market share.
With the deteriorating economic situation and its instability, the availability of electric vehicles plays an important role. Tesla took this into account and reduced its car prices, making them even more attractive to the general public. The BofA Securities report predicts that the company will release a new low-cost car in 2026, followed by an updated Model 3 next year.
“Elon cut prices much more than we thought he would,” Murphy said. “The model that will be everyday man’s EV doesn’t come out until 2026. Before that lower-priced vehicle comes out, if he wants to grow he has to keep taking price points down.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.