---
title: Tesla’s wide-open road is getting cramped  - The Hustle
description: But the company’s first-mover advantage should help it weather heavy competition.
image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/814635430-final_size-tesla20market20share_20221201010617.webp
---

# Tesla’s wide-open road is getting cramped

![Jacob Cohen](https://thehustle.co/wp-content/uploads/2021/01/IMG_5670-1-modified-768x768.png?width=48&height=48&name=IMG_5670-1-modified-768x768.png) [Jacob Cohen](https://hs-sbup.thehustle.co/author/jacob-cohen) [Jacob Cohen Twitter profile ](https://twitter.com/ImJacobCohen)

Published:  December 02, 2022

Updated:  October 11, 2023

For years, Tesla has enjoyed a majority share of the US electric vehicle market with little competition.

![Tesla’s wide-open road is getting cramped](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/814635430-final_size-tesla20market20share_20221201010617.webp?width=595&height=400&name=814635430-final_size-tesla20market20share_20221201010617.webp)

While the company’s done a great job using its first-mover advantage to expand its lineup, charging network, and factories, this period of nearly unchallenged growth is rapidly closing.

#### **What’s happening?**

Per [estimates](https://press.spglobal.com/2022-11-29-New-EV-entries-nibbling-away-at-Tesla-EV-share,-according-to-S-P-Global-Mobility) from S&P Global Mobility, Tesla’s US EV market share will drop to less than 20% by 2025, down from 65% this year and 71% last year.

- As more affordable options become available, Tesla’s entry-level Model 3, which starts at $40k+, is looking increasingly pricey.

To that end, Tesla is [reportedly ](https://www.reuters.com/business/autos-transportation/tesla-readies-revamped-model-3-with-project-highland-sources-2022-11-28/)ramping up development of a cheaper Model 3. The company is also [delivering](https://twitter.com/Tesla/status/1592725355328311300) its first-ever electric Semi Truck to Pepsi today.

**Big picture:** Roughly [5.1%](https://www.cnbc.com/2022/11/29/teslas-dominance-of-evs-is-eroding-as-cheaper-cars-hit-the-market.html) of 10.22m vehicles registered in the US through Q3 were electric, up from 2.8% in 2021. Small, but growing fast.

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