Tesla’s market share in the United States is still strong but it is being challenged by less expensive options as consumers are opting for affordable electric vehicles.
A new study from S&P Global Mobility shows Tesla still holds a considerable amount, 65 percent, to be exact, of the U.S. electric vehicle market. However, this figure is down from 79 percent two years ago, and pricing is the biggest reason.
“Much of Tesla’s share loss is to EVs available in a more accessible MSRP range – below $50,000, where Tesla does not yet truly compete,” the firm said in its report.
340,000 of the roughly 525,000 EVs registered from January to September 2022 were Teslas. 56 percent of the market was controlled by the Model 3 and Model Y. The remaining sales are divided amongst 46 other EVs that are “competing for scraps” until electrification is more widespread amongst U.S. consumers.
Tesla has four of the top five EV models by registration from January to September. The vehicles in the sixth through tenth positions are the Chevrolet Bolt EV/EUV (21,600 registrations), Hyundai Ioniq5 (between 17,000-18,000 units), Kia EV6 (between 17,000-18,000 units), Volkswagen ID.4 (11,000 units), and Nissan Leaf (10,000 units).

Credit: S&P Global Mobility
Tesla still obviously dominates the field. However, S&P Global Mobility notes Tesla’s position is changing because more affordable options are available, and they offer “equal or better technology and production build.” Because of this, the firm’s report notes that Tesla’s ability to retain a dominant market share will not be guaranteed in the future.
The group of 48 competing models to the Model 3 and Model Y will only grow. The firm forecasts 159 models across all manufacturers in the U.S. EV market by the end of 2025, which is faster than Tesla will be able to add production volume through new manufacturing plants. Tesla does plan to eventually attack the affordable market with the rumored $25,000 model, which CEO Elon Musk confirmed during the Q3 earnings call was in development. When Tesla will launch the vehicle is unclear, but its competition in the affordable vehicle market will be thick when the car is eventually brought to production.
Tesla is one of the few automakers that is a pure-EV company. S&P Global Mobility’s report estimates this could be the company’s biggest advantage as “few EV owners have returned to ICE powertrains.” However, Tesla brand loyalty could be tested as more EVs enter the market. The Model Y currently has 60.5 percent brand loyalty, and nearly 74 percent of buyers were first-time Tesla owners. These figures both lead the industry.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
News
Tesla appears to have teased a long-awaited Model Y trim for a Friday launch
The company posted it with its Europe & Middle East account, and it appears to be a Model Y Performance, which has been spotted testing at the famed Nurburgring in Germany.

Tesla appears to have teased a long-awaited Model Y trim for a launch on Friday.
The company posted it with its Europe & Middle East account, and it appears to be a Model Y Performance, which has been spotted testing at the famed Nurburgring in Germany.
Tesla has teased a video of the Model Y Performance from its European X account
We’ve been waiting for this trim of the Model Y for a very long timepic.twitter.com/izXviZKs4X
— TESLARATI (@Teslarati) August 27, 2025
The Model Y Performance became a big-time hit after it packed the family-style interior with lightning-fast acceleration, speed, and handling.
As Tesla transitioned the Model Y into the updated “Juniper” design, the company took its time to create an even better vehicle with the new Performance configuration.
It has surely taken its time, but the vehicle appears to have undergone some exterior changes to enhance aerodynamics, handling, and overall performance.
We recently went into what was different about the test units spotted at Nurburgring in an article, but we’ll also list them here:
- New 21″ wheels
- All black headliner, a big change that was included in the Model Y L, the first time a Model Y has had that option
- Updated brakes
- Bucket seats that appear to be similar to the new Model Y L in China
- New Carbon Fiber Spoiler
- Performance Badging
- Changes to both the front and rear bumper
- Suspension with Adaptive Dampers
Tesla Model Y Performance zips around Nurburgring with new features
It does not seem like there’s much else it could be, but it is important to note that Tesla has been developing a handful of affordable models. There is a possibility that Tesla could launch one of these on Friday, but it seems unlikely.
The affordable models will likely be coming to the United States or China before they would in Europe.
They would be developed at Gigafactory Texas or Gigafactory Shanghai. The company stated in its Q2 Earnings Shareholder Deck that it had continued to expand its vehicle offerings and successfully manufactured the first builds of a more affordable model in June.
Volume production is planned for the second half of 2025.
Elon Musk
SpaceX Starship Flight 10 was so successful, it’s breaking the anti-Musk narrative
That’s all the proof one could need about the undeniable success of Starship Flight 10.

Starship Flight 10 was a huge success for SpaceX. When both the Super Heavy booster and the Starship Upper Stage successfully landed on their designated splashdown zones, the space community was celebrating.
The largest and most powerful rocket in the world had successfully completed its tenth test flight. And this time around, there were no rapid unscheduled disassemblies during the mission.
As per SpaceX in a statement following Flight 10, “every major objective was met, providing critical data to inform designs of the next generation Starship and Super Heavy.” The private space enterprise also stated that Flight 10 provided valuable data by stressing the limits of Starship’s capabilities.
With all of Flight 10’s mission objectives met, one would think that it would be pretty easy to cover the story of Starship’s successful tenth test flight. But that’s where one would be wrong, because Elon Musk companies, whether it be Tesla or SpaceX or xAI, tend to attract negative slant from mainstream media outlets.
This was in full force with Starship Flight 10’s coverage. Take the BBC’s Facebook post about the fight test, which read “Elon Musk’s giant rocket, earmarked for use in a 2027 mission to the Moon, has had multiple catastrophic failures in previous launches.” CNN was more direct with its slant, writing “SpaceX’s troubled Starship prototype pulls off successful flight after months of explosive mishaps” on its headline.
While some media outlets evidently adopted a negative slant towards Starship’s Flight 10 results, several other media sources actually published surprisingly positive articles about the successful test flight. The most notable of which is arguably the New York Times, which featured a headline that read “SpaceX’s Giant Mars Rocket Completes Nearly Flawless Test Flight.” Fox News also ran with a notably positive headline that read “SpaceX succeeds at third Starship test flight attempt after multiple scrubs.”
Having covered Elon Musk-related companies for the better part of a decade now, I have learned that mainstream coverage of any of his companies tends to be sprinkled with varying degrees of negative slant. The reasons behind this may never be fully explained, but it is just the way things are. This is why, when milestones such as Starship’s Flight 10 actually happen and mainstream media coverage becomes somewhat objective, I can’t help but be amazed.
After all, it takes one heck of a company led by one heck of a leader to force objectivity on an entity that has proven subjective over the years. And that, if any, is all the proof one could need about the undeniable success of Starship Flight 10.
Elon Musk
Tesla’s Elon Musk takes another shot at Waymo’s capabilities stemming from LiDAR
“LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation.”

Tesla CEO Elon Musk has frequently expressed his opinions on LiDAR in the past, but in recent days, the EV maker’s frontman has continued to discuss the weaknesses in the technology and why his company has relied on cameras.
He also mentioned the suite’s limits on Waymo’s capabilities.
Tesla completely abandoned using radar alongside its camera suite a few years ago, something it referred to as “Tesla Vision” at the time. For its vehicles, it has only used cameras since this transition, and Musk has never once shied away from this strategy.
Earlier this week, he discussed the reliance of LiDAR and radar by other companies:
“Lidar and radar reduce safety due to sensor contention. If lidars/radars disagree with cameras, which one wins?
This sensor ambiguity causes increased, not decreased, risk. That’s why Waymos can’t drive on highways.
We turned off radars in Teslas to increase safety. Cameras ftw.”
Elon Musk argues lidar and radar make self driving cars more dangerous
He continued with this narrative again and mentioned Waymo specifically on a second occasion.
Musk’s focus this time was on Waymo vehicles and their capabilities in adverse weather, specifically snow, rain, or even dust storms, and how LiDAR struggles to navigate in these conditions.
He said:
“LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation. As I have said many times, there is a role for LiDAR in some circumstances and I personally oversaw the development of LiDAR for the SpaceX Dragon docking with Space Station. I am well aware of its strengths and weaknesses.”
LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation.
As I have said many times, there is a role for LiDAR in some circumstances and I personally oversaw the development of LiDAR for the SpaceX…— Elon Musk (@elonmusk) August 26, 2025
Tesla’s approach is significantly different than most companies. Waymo, Motional, Aurora, and Zoox all use LiDAR for their self-driving programs, while Tesla continues to rely on its camera-only approach.
Musk even said that Model S and Model X utilized a Tesla-developed high-resolution radar, but it could not “compare to passive optical (cameras), so we turned it off.”
Tesla developed high resolution radar and the hardware is actually present in Model S & X, but it just can’t compare to passive optical (cameras), so we turned it off.
As a side note, any military systems that rely on radar “stealth” technology are toast in a modern conflict,…
— Elon Musk (@elonmusk) August 26, 2025
-
Elon Musk14 hours ago
SpaceX Starship Flight 10 was so successful, it’s breaking the anti-Musk narrative
-
News22 hours ago
Tesla China working overtime to deliver Model Y L as quickly as possible
-
Elon Musk3 days ago
Elon Musk argues lidar and radar make self driving cars more dangerous
-
News3 days ago
Tesla Model Y L sold out for September 2025
-
Elon Musk6 days ago
Elon Musk takes aim at Bill Gates’ Microsoft with new AI venture “Macrohard”
-
Elon Musk19 hours ago
Tesla reveals it has expanded its Robotaxi fleet in Austin
-
News2 days ago
WATCH: SpaceX attempts Starship’s tenth test flight after two delays
-
News2 days ago
Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin