Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tesla market share in US drops to lowest since 2017

reuters.com

Post reply on HN
Print view View original

11–20 of 332 posts

Re: Tesla market share in US drops to lowest since 2017

#11

Post by mandevil »

assimpleaspossi wrote: post #4
bluedevilzn wrote: post #2

The stock on the other hand…

Yes. A lot of people, and obviously some "news" reporters, need to learn the difference between market share and stock price. And that as a market grows one company cannot maintain the same market share as competitors join in over time.

"Tesla is on track toward a second year of sales decline." - from the article

Consecutive years of sales declines is a situation where it does not matter if the market is growing or shrinking, it's bad for a company. The only way to grow if absolute sales go down is to raise margins on each individual unit.

"But with weakening sales and a host of competitors, Tesla has had to cut prices in recent years, squeezing its margins and worrying investors."

Hmmmm, I guess maybe the author of the article understands this better than you think?

Re: Tesla market share in US drops to lowest since 2017

#12

Post by FinnKuhn »

bluedevilzn wrote: post #2

The stock on the other hand…

The Tesla stock evaluation has little to do with what Tesla is delivering today and a lot more with what investors imagine they will be able to do in the future.

Based on their history I'm pretty optimistic that those expectations will not be met, but Tesla somehow still rises in value.

Re: Tesla market share in US drops to lowest since 2017

#13

Post by Aurornis »

andsoitis wrote: post #5

Company value is dependent on expected future profit/revenue/etc. not market share per se. If the market grows in size and you’re able to grow revenue and profit, reduced market share in and of itself doesn’t matter. While the U.S. market share has declined, Tesla's overall annual revenue has continued to grow from $11.75 billion in 2017 to over $97 billion in 2024, though it saw a slight decline in revenue for the 1…

> If the market grows in size and you’re able to grow revenue and profit, reduced market share in and of itself doesn’t matter.

The Tesla story and its high valuation were based on the idea that Tesla had won the car market, others couldn’t catch up, and Tesla was going to be doing laps around the competition with all of their additional business lines that grew out of their class-leading EV business.

If their EV business is losing market share, that really is a problem for the narrative. They could be fine as an EV company, but they’ve sold themselves as something far more.

> Tesla's overall annual revenue has continued to grow from $11.75 billion in 2017

2017 was forever ago in technology and economic terms. The most important problem right now is that their revenue isn’t growing while everyone else is getting better at EVs.

Re: Tesla market share in US drops to lowest since 2017

#14

Post by to11mtm »

testbjjl wrote: post #8
leetharris wrote: post #6

The whole EV market is growing and everyone is racing to buy one before incentives run out. The article is framed as a hit piece and even has political statements in it. But here is an exact quote from the article: "Sales of new EVs jumped more than 24% month over month in July to 128,268, according to the Cox data, driven by the looming end of a $7,500 tax credit for EVs and attractive deals. Tesla saw sales rise 7%…

Wonder if the end of the subsidies against a 7% increase is sales, potentially due to end of subsidies is a canary?

You mean like the thing where Telsa magically sold a not-really-logical number of vehicles in Canada when subsidies were running out there?

Re: Tesla market share in US drops to lowest since 2017

#15

Post by nabla9 »

andsoitis wrote: post #5

Company value is dependent on expected future profit/revenue/etc. not market share per se. If the market grows in size and you’re able to grow revenue and profit, reduced market share in and of itself doesn’t matter. While the U.S. market share has declined, Tesla's overall annual revenue has continued to grow from $11.75 billion in 2017 to over $97 billion in 2024, though it saw a slight decline in revenue for the 1…

As the link you provided shows Tesla's revenues have been flat almost 3 years now.

Re: Tesla market share in US drops to lowest since 2017

#16

Post by cosmic_cheese »

Political issues aside, Tesla has a variety problem. If we converge the split between midrange and premium, their lineup consists of a midsize sedan, a midsize SUV, and a niche truck.

Early on this was in their favor, but with more automakers entering the fray with serious attempts to compete, they’re going to have to add at least a couple more models to reman competitive: something in the vein of a Chevy Bolt on one end and an SUV that’s the next step up in size from the Y/X on the other. A more conventional truck that more directly competes with the F-150 also couldn’t hurt.

Re: Tesla market share in US drops to lowest since 2017

#17

Post by tw04 »

nabla9 wrote: post #10
leetharris wrote: post #6

The whole EV market is growing and everyone is racing to buy one before incentives run out. The article is framed as a hit piece and even has political statements in it. But here is an exact quote from the article: "Sales of new EVs jumped more than 24% month over month in July to 128,268, according to the Cox data, driven by the looming end of a $7,500 tax credit for EVs and attractive deals. Tesla saw sales rise 7%…

Tesla's revenue has been flat 3 years now. There are up and downs but it's stagnated over long term. 2022-Q3 $21.5B revenue 2025-Q2 $22.5b revenue

You can only cut costs so much before you're selling the equivalent of a $50k geo metro.

When they removed the center horn and the stalks from their cars, they officially jumped the shark. But I bet they saved at least $50 per car from their costs. I still can't believe the NHTSA hasn't issued a recall.

Re: Tesla market share in US drops to lowest since 2017

#18

Post by utyop22 »

nabla9 wrote: post #10
leetharris wrote: post #6

The whole EV market is growing and everyone is racing to buy one before incentives run out. The article is framed as a hit piece and even has political statements in it. But here is an exact quote from the article: "Sales of new EVs jumped more than 24% month over month in July to 128,268, according to the Cox data, driven by the looming end of a $7,500 tax credit for EVs and attractive deals. Tesla saw sales rise 7%…

Tesla's revenue has been flat 3 years now. There are up and downs but it's stagnated over long term. 2022-Q3 $21.5B revenue 2025-Q2 $22.5b revenue

And whats the real growth when controlled for inflation (price increases)?

Re: Tesla market share in US drops to lowest since 2017

#19

Post by utyop22 »

andsoitis wrote: post #5

Company value is dependent on expected future profit/revenue/etc. not market share per se. If the market grows in size and you’re able to grow revenue and profit, reduced market share in and of itself doesn’t matter. While the U.S. market share has declined, Tesla's overall annual revenue has continued to grow from $11.75 billion in 2017 to over $97 billion in 2024, though it saw a slight decline in revenue for the 1…

Marketshare is how revenue is determined. If the market as whole grows but Tesla's share of it does not at least stay static, it means it is losing revenue.

Re: Tesla market share in US drops to lowest since 2017

#20

Post by thfuran »

tw04 wrote: post #17
nabla9 wrote: post #10

Earlier quoted context omitted.

Tesla's revenue has been flat 3 years now. There are up and downs but it's stagnated over long term. 2022-Q3 $21.5B revenue 2025-Q2 $22.5b revenue

You can only cut costs so much before you're selling the equivalent of a $50k geo metro. When they removed the center horn and the stalks from their cars, they officially jumped the shark. But I bet they saved at least $50 per car from their costs. I still can't believe the NHTSA hasn't issued a recall.

Wait, how do you honk on a Tesla?
Post reply on HN