EV Sales Are On The Rise, But Tesla's Global Market Share Is Shrinking: Analyst

Electric vehicle penetration is tracking ahead of its year-to-date pace, but EV pioneer Tesla, Inc. TSLA saw its market share take a beating in October, according to a Credit Suisse analyst. 

EV Narrative Remains Strong: EV penetration in October and early reads for November underline the continued traction in EV inflection, analyst Dan Levy said in a note.

Global EV penetration was at 10.4% in October, down 160 basis points from September, but well ahead of the year-to-date pace of 8%, the analyst said. 

EV sales growth was the highest in China at 117% year-over-year, followed by the U.S. at 56% and Europe at 27%, he said. Globally, sales climbed 73%.

EV penetration was the highest in Europe, with EVs accounting for 17% of new vehicle sales in October, Levy said. The numbers were at 15% for China and 5.1% for the U.S., he said. 

The Early November Read On EVs: Preliminary numbers for November showed EV sales continued to grow despite supply shortage, with the growth led by China and Europe, Levy said.

Penetration was also solid in Europe, the analyst said. In Germany, the penetration was at a record high of 34% in November, he said. 

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Tesla Hits Soft Patch: Tesla's global battery EV market share fell notably from 27% in September to 11% in October, reflecting the company's typical progression in a "quarterly wave," Levy said.

The first month of the quarter is typically slow for Tesla, he said. 

Compared to recent first months of the quarter, October fared better, the analyst said. The company sold 49,000 units in October compared to 36,000 in July and 32,000 in April.

Tesla's market share fell notably in China, from 17% in September to 5% in October, Levy said.

The company's market share in Europe also tumbled from 24% in September to 3% in October, while in the U.S., the market share slipped from 84% to 70%.

Regionally, Volkswagen AG VWAGY reclaimed leadership position in Europe  with a 24% share, and General Motors Company GM and BYD Company Limited BYDDF led the pack in China with 15% share, according to Credit Suisse. 

Tesla shares were receding 1.15% to $992.24 Friday morning. 

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