Tesla's global market share fell to its lowest level in over 2 years as electric car competition heats up
- Tesla's market share of the global electric-car market fell to 11% in April.
- The electric-car company's lead in the US is also narrowing, as Ford and GM build their own EVs.
- Tesla's stock fell to its lowest level in three weeks following the news.
Tesla's grip on the electric-car market is slipping.
In April, the carmaker's global market share fell to its lowest level since January 2019, according to Credit Suisse analyst Dan Levy. Tesla's slice of the global EV market share dropped from 29% to 11% between March and April as more automakers flooded the space.
Former Ford CEO Mark Fields told CNBC that Tesla CEO Elon Musk is facing pressure from several automotive companies.
"One of the many things [Musk] did is he pushed the industry toward taking EV seriously," Fields said. "He has real competition now, and that's why you're seeing some of their share in some of the major markets under a lot of pressure."
Tesla's market share decreased across the board from China to Europe, as well as the US, according to Levy.
While Tesla remains the leading electric car company in the US, its market share has continued to slip. In April, Tesla's market share dropped to 55% from 72% the previous month.
Levy attributes the drop to recent price hikes for Tesla products, as well as emerging competition from automakers like Ford and General Motors who have capitalized on Musk's momentum. He noted that Volkswagen took the lead in Europe and Ford's new Mustang Mach-e has cut into Tesla's US sales.
Tesla's market share has been receding for several months. In February, the Mustang Mach-e became the third-highest-selling electric vehicle in its first full month of sales. Last month, Ford announced its electric F-150 and the vehicle quickly captured public attention after President Joe Biden toured Ford's plant. After its debut, Ford took in over 44,500 preorders for the vehicle within 48 hours.
GM has also garnered significant fanfare in recent months for details surrounding the future launches of its Hummer EV, as well as its Chevrolet Silverado electric pickup truck.
Meanwhile, Tesla has faced scrutiny over the safety of some of its vehicles. On Thursday, the car company announced its third recall this month. Its autopilot system has also come under fire this year amid several car crashes.
Tesla stock surged in 2020, but has already dropped over 14% in 2021. Tesla's stock dropped as much as 4% to its lowest level in three weeks after the market-share data was released on Wednesday. The company was trading just below $600 per share at the time of publication.
Tesla's loss has been Ford's gain. Ford shares have rallied almost 69% this year.