Tesla (TSLA) reportedly increased its deliveries by 25% in the US last year, now holding a 4.2% market share of the US auto market.
Historically, many in the auto industry underestimated Tesla’s potential, considering it to be nothing more than a niche automaker. However, Tesla has solidified its position by capturing a majority market share in the electric vehicle market in the US. As the demand for electric vehicles grows, Tesla is emerging as a significant player in the broader auto market within its home country. According to estimates from Kelley Blue Book, the Texas-based automaker delivered over 650,000 vehicles in the US last year, representing a 25% increase.
While a 4.2% market share may seem modest at first glance, it is notable in the highly fragmented US auto market. This achievement has propelled Tesla to surpass well-established brands like VW, BMW, Subaru, and Mazda. Among major automakers, Tesla experienced the highest increase in deliveries, second only to Honda, which had a significant year.
This upward trend for Tesla is promising, and it raises anticipation for the company’s ability to surpass the next automaker, Nissan. Despite the potential impact of the Cybertruck, Tesla’s next-generation affordable vehicle will likely be the game-changer that allows the company to secure a double-digit market share. This shift is anticipated to take place around 2025-2026, signaling a shift towards widespread acceptance and adoption of all-electric vehicles.
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