Will Tesla Dominate US Electric Vehicle Sales in 2030?
Tesla-US-EV-Sales-Share-Forecast-By-Year-2020-2030

Will Tesla Dominate US Electric Vehicle Sales in 2030?

It’s no secret that Tesla dominates electric vehicle sales in the US with a sales share well above 50% since the launch of the Model 3 in 2018. However in my latest EVAdoption long-term US forecast I estimate that by the end of 2030, Tesla’s electric vehicle sale share in the US will drop to ~21%.

While this is a fairly significant drop in sales share from the 66.6% I’m forecasting for 2020, it is not unexpected as the other OEMs gear up EV production. I’m forecasting Tesla US sales will increase to about 1.05 million in 2030 from 226,010 in 2020 – an increase of roughly 4.6 times 2020’s sales.

I recently completed an overall US EV (including both BEVs and PHEVs) sales forecast out to 2030 that includes the number of EV models growing from the 55 EVs available during 2020 to 215 at the end of 2030.

The number of Tesla models could increase to 11 from the current four. The additional 7 models potentially being the:

  • Cybertruck
  • Roadster
  • Model “2” (a small Civic-sized sedan or hatchback)
  • Small/mid-sized pick-up
  • Large SUV
  • Small SUV
  • And the long-rumored (via Elon Musk) minivan.
Tesla Cybertruck
Tesla Cybertruck

The biggest declines occur during the period of 2021 through 2025 when Tesla’s EV share falls to 24%, but then remains relatively steady in the low 20s the remainder of the decade. From 2020 through 2025, when overall EV sales are still relatively low, an estimated 100+ additional new EVs will be available in the market. During this period of significant EV sales growth among other OEMs, Tesla will likely add 3 new models – the Cybertruck, the very low-volume Roadster, and possibly the small “Model 2” that is likely being designed primarily for China and Europe.

Even at around 21%, however, that would mean that 2 out of every 10 EVs purchased or leased in the US are Tesla models, from the current 6.5 out of 10. In 2019, the Ford brand (not including Lincoln) had the highest percentage of total overall US vehicle sales at 13.4% – so Tesla’s ~21% share of just EV sales would still be impressive from a market share perspective.

Looking at the above chart starting with the original Roadster back in 2011, you can see how Tesla’s share of EV sales increased after the Model S launched in 2012, then the Model X in late 2015, and the Model 3 in mid 2017 and then the Model Y in 2020. And while we might see a low-volume of Cybertrucks reach customers in late 2021, sales of the Model S and X are likely to be flat or decline and the Model 3 will likely be flat or see a slight increase or decrease in units delivered as the more popular crossover form factor of the Model Y steals sales from its sedan sister model.

Of course, a lot can happen in the next 10 years that could impact Tesla’s EV sales share. My latest overall forecast is fairly aggressive and assumes that the legacy automakers actually deliver on bringing about 180 more EVs to market (I anticipate some PHEV models being discontinued), they produce them at scale, don’t have battery supply issues, and consumers really begin to be comfortable buying them in large numbers beginning around 2024 or 2025.

Because of Tesla’s innovation, speed and aspirational brand, growing its sales at a steady pace over this decade seems likely – the question becomes how quickly and at what scale will consumers buy EVs from automakers other than Tesla. Besides its EV-only brand and focus, direct sales model, superior battery efficiency and range – Tesla’s network of Supercharger DC fast chargers continue to be a significant competitive advantage for consumers leery of taking road trips in an EV.

Current 2020 Estimates

For 2020, my US forecast is that Tesla will deliver 226,010 vehicles (Models S, X, 3 and Y). The company’s US sales under my forecast would account for 45.7% of global sales.

And sales in China of the Model 3 could account for 36% in 2020, more than the 34% in the US – which shows the importance of China to Tesla’s future.

For the year 2020 in the US, I’m forecasting that Tesla will account for 65% of all (BEV and PHEV) electric vehicle sales in the US.

And when only including only BEVs, Tesla has a crazy level of dominance at 83.5% of BEV sales.

The next 10 years of electric vehicle adoption in the US are going to be fascinating to watch. I expect Tesla to remain far and away the sales leader in 2030, but several other automakers including Toyota (because of its PHEVs), Ford, Volkswagen, Rivian, and Nissan will grow their market and chip away at Tesla’s dominance.

This Post Has 4 Comments

  1. Jordan

    While I think the 2030 markets share estimate is pretty reasonable, it will likely be a much less steep ramp down, initially. I see most of the dip coming post-2025 when OEMs really commit.

    By contrast, you are estimating only 1M Tesla sales by the end of the decade. Giga Austin and Fremont alone will already have that capacity by the end of 2021. Will they settle for 9 years of zero growth? Seems extremely low-ball to me.

    Most of the OEM moves so far seem to be still on the fence; keeping those options open as a hedge for if/when battery prices drop enough for them to make decent margins on EVs. So, I see them really starting to make major efforts after that point (probably 2022/2023).

    1. evadoption2016

      On Tesla, my focus was not on the capacity of the factories, but what level market demand will be in during those years, competition, and segment demand. S and X will likely remain flat or decline. M3 has likely peaked – MY will grow strongly. Cybertruck will do well, but not in the volumes I think a lot of others expect.

      By 2025 Tesla will be over a 15 year-old company with 3 models that have been in market from 7 to 13 years.

  2. Alex McKenna

    I think you have overlooked the fact that the M3, S and X will all be much improved by 2025, possibly replaced. There won’t be cars getting exported to Europe or elsewhere, giving Tesla more production to sell in the USA. Increasing efficiency and production numbers will also allow them to cut prices, making their cars even more competitive than they are now..

    1. evadoption2016

      On the S and X, yes they will be improved and prices keep coming down; but they are in a small segment of premium sedans and SUVs. Competition is also coming (or here) from Lucid, Polestar, Mercedes, BMW, Audi, Porsche, Cadillac, Rivian (SUV), Jaguar, etc. The Tesla S and X may have better specs combined with the SuperCharger network – but not everyone wants a Tesla. The market for S and X has a low upper limit.

      Model 3 is different. M3’s biggest challenges are: 1) Sedans are out of favor. The reason the M3 has done so well to date is that people wanted a lower-priced Tesla, preferred a CUV or SUV, but didn’t want to wait for the Model Y. 2) The Model Y. We are already seeing in California that MY sales are outpacing M3 and MY production volume hasn’t yet scaled. Model Y will cannibalize a lot of M3 sales – the question is just how much?

      The one opportunity for the Model 3 is price. If Tesla focuses on keeping the Y priced quite a bit higher and maintaining margins, but continues to lower the price into the mid $30s on the 3, then it has room to grow simply based on price. So, we will see what Tesla does and how the market reacts.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.