Internal combustion engine (ICE) vehicles continue to lose market share to electric vehicles, a trend that Wall Street analysts predict will continue as more automakers launch more new models.
Until now, the EV Goliath remains the industry pioneer, Tesla (TSLA) – Get a free report. Tesla wasn’t the first electric vehicle to hit the market, but it was the first to gain widespread attention among mainstream buyers by focusing on performance and luxury.
The evolution of Tesla’s electric vehicle range has expanded, allowing it to steadily increase its sales volume. The Model Y entered the SUV segment, while the Model 3 allowed it to compete in the sub-$40,000 family sedan market.
The success of these models is due to the fact that Tesla never loses sight of its roots. Both models are aimed at buyers concerned about luxury and performance.
However, the company’s dominance among luxury car buyers may be near a tipping point. The latest data shows that Tesla remains by far the leading manufacturer of electric vehicles. However, it also shows that one of the leading luxury brands is reducing its lead.
Image source: tesla
Electric vehicle sales soar
The media attention on electric vehicles may lead you to think that electric vehicles already represent a significant portion of total vehicles sold.
Related: Elon Musk denounces increased EV competition from Tesla
That is not the case. Electric vehicle sales totaled 313,000 in the third quarter, up 49.7% from a year ago. according to Kelly’s Blue Book. This is significant growth, given that total U.S. light vehicle sales, including ICE vehicles, only grew about 15%.
However, electric vehicles still represent only a fraction of the total U.S. vehicle market, accounting for just 7.9% of all vehicles sold last quarter.
Clearly, there’s a lot more room for EV makers to grow and plenty of opportunity for luxury brands to roll new models off production lines. So while Tesla is in the lead now, its pole position is not guaranteed.
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This luxury brand’s new electric vehicles see an increase in sales
Mercedes Benz (MBGAF) – Get a free report is one of the world’s leading luxury vehicle manufacturers. Its vehicles have always been one of the most desired by wealthy buyers, and its AMG range is a benchmark in high-performance vehicles.
Mercedes-Benz’s attention has increasingly shifted towards electric vehicles and its recently launched models are winning over consumers. In the third quarter, Mercedes-Benz sold 4,457 of its new electric EQE sedans and SUVs.
It also enjoyed strong growth in sales of other electric vehicles, including a 476% increase in sales of the $104,000 EQS SUV and a 342% increase in sales of its five-seat EQB SUV, priced starting around $54,000.
The only electric vehicle model that saw a drop in sales was the EQS Sedan. Mercedes-Benz sold 1,100 of the $105,000 car, down 35% from last year, likely because more buyers opted for the cheaper new EQE, which has an MSRP of around $75,000.
Opting for the AMG variation of the EQE will set you back $108,000, but that price equates to zero-to-60 mph times of under 4 seconds.
Overall, Mercedes-Benz sold 10,423 electric vehicles in the quarter, up 284% from a year ago. That was good enough to give it a 3.3% market share in the entire electric vehicle market.
Mercedes-Benz’s strength may come at Tesla’s expense. Tesla’s top-of-the-line Model S only sold 3,132 units last quarter, down 65.8% from last year, and its $80,000 Model
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