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Reports: Mustang Mach-E Already Taking Significant Market Share From Tesla

Independent investor groups are watching to see how the new Ford Mustang Mach-E will impact Tesla's market share. Early indications are that the Mustang Mach-E is taking sales directly away from Tesla.

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Foreword: Before we go too far, let's be clear that this author has never written a story about a "Tesla killer" from Ford. Elon Musk has said all along that he hopes other EVs and manufacturers join him in his goal to shift all automotive production to battery-electric vehicles. It's a big tent and there are plenty of seats at the table for great new BEVs.

Related Story: Here's Why a Tesla Owner Opted For a New Ford Mustang Mach-E Instead of a Model Y

Investors Business Daily is reporting that the new Ford Mustang Mach-E is directly impacting Tesla's dominant US market share of battery-electric vehicles. Here are the three big takeaways from the report which is based on an analysis by Morgan Stanley and Ford's just-announced sales results:

1) Ford sold 3,739 Mustang Mach-E crossovers last month (February). This is the first full month of sales for the new BEV which started sales in the last days of December.
2) While U.S. EV sales rose 34% in February, Tesla's share fell to 69% from 81%. The Ford Mustang Mach-E accounted for nearly 100% of the share loss
3) Nearly 70% of Mach-E orders are from competitive brands, while just over one-fifth were sold in California

In addition to the Mustang Mach-E being a head-to-head competitor with the Tesla Model Y, Toyota's RAV4 Prime is also earning business from existing Tesla owners. See our report titled "Tesla Owners Are Buying Toyota RAV4 Prime Plug-in Hybrids – Here’s Why." Those who need a more flexible vehicle in terms of long-range travel in rural areas, towing capacity, and other utility features like a spare tire, are adding a RAV4 Prime plug-in hybrid-electric vehicle to their Tesla household.

Watch for an update on how large the RAV4 Prime's sales have grown shortly as Toyota updates its sales figures. We would list Tesla's monthly sales by model, but Tesla does not provide them for the US market.

John Goreham is a long-time New England Motor Press Association member and recovering engineer. Following his engineering program, John also completed a marketing program at Northeastern University and worked with automotive component manufacturers. In addition to Torque News, John's work has appeared in print in dozens of American newspapers and he provides reviews to many vehicle shopping sites. You can follow John on Twitter, and view his credentials at Linkedin

Image of Tesla next to RAV4 Prime courtesy of owner Kevin O'Brien.

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DeanMcManis (not verified)    March 3, 2021 - 8:59PM

Competition is good. Tesla's REAL competition is the ICE (gas) cars, crossovers and trucks that have 90%+ of the current market of new vehicle sales. Winter is never going to be a great time for EV sales anyway. I think that the minor downturn in Tesla Model Y sales is that many prospective buyers are waiting to see if the Green bill comes through, which would save them $7,000 off of the net price. And next will be the group of Model Y buyers who are waiting for the 4680 battery Model Ys to start being produced. Others are thinking that there may be a RWD SR Model Y with LFP batteries around the corner, which combined with the tax subsidies could bring the net price down to $36K.

DeanMcManis (not verified)    March 8, 2021 - 1:02AM

Tesla sales were up over 34% year over year. Other BEV sales had a higher percentage of growth but that is because their previous BEV sales were so poor previously. The fundamental flaws here are just comparing BEVs, and not comparing total sales, but percentages instead.