The Rise and Recent Decline of Tesla’s Share of the U.S. Electric Vehicle Market

This article examines the rise and recent decline of Tesla in the U.S. electric vehicle market. Using qualitative, semi-quantitative, and statistical methods, the article traces how Tesla acquired a first-mover advantage and how second movers, both established automakers and start-ups, responded to Tesla’s rise. The recent decline in Tesla’s share of the U.S. electric vehicle market is linked to several factors: the proliferation of electric vehicle offerings from competitors, changes in public policy, and controversial decisions by Tesla and its CEO. The article concludes with a discussion of promising future strategies for both Tesla and its competitors.