Tesla still dominates the EV market in the U.S., but these rivals are catching up

Competition heats up, but the pie is growing

A total of 63% of the electric vehicles (EVs) registered in the U.S. during the first eight months of 2021 have been Tesla $(TSLA)$ products. The company's two most affordable vehicles dominate registrations. Yet rivals are catching up, and more EVs are coming to market, poised to steal attention from the California company.

The top two, then a big drop

According to data gathered by Experian (EXPN.LN), Tesla Model Y SUVs made up about 36% of EV registrations nationwide through August as 105,445 Model Ys were registered. Tesla Model 3 sedans made up another 27%, with just over 80,681 newly registered.

Tesla does not report U.S. sales. It gives a global number but does not break out specific countries. So, registrations may be the most accurate measure of how well the company is doing in its home market.

There was a significant drop-off to get to third place. The Chevy Bolt EV took bronze, with 22,799.

Competition gaining ground

Non-Tesla products round out the list, with the Ford Mustang Mach E taking fourth place and the Volkswagen ID.4 is fifth.

That four manufacturers build the top five bestselling EVs may signal a meaningful change. As impressive as Tesla's dominance is, it's slipping. In 2020, Teslas made up 79% of all EVs registered in the U.S. The company held four of the top five spots -- a remarkable feat, given that Tesla only sells four products.

But the EV competition is just beginning. Automakers have brought out several dozen new electric vehicles this year. They include mass-market choices like the Hyundai Ioniq 5 compact SUV, ultraluxury cars like the Mercedes-Benz EQS, and even electric pickup trucks like the Rivian R1T and the upcoming Ford $(F)$ F-150 Lightning.

Tesla has a commanding lead. But it gains new competitors every day.

Those competitors are fighting over a growing pie. Electric vehicles remain less than 3% of the cars on American roads. But, Experian says, Americans registered more than twice as many EVs through the first eight months of 2021 than in the equivalent period one year earlier.