Tesla’s market share soars as U.S. electric vehicle adoption accelerates
The U.S. electric vehicle (EV) market saw impressive sales numbers in the second quarter of 2023, recording nearly 300,000 new EV sales – a record for any quarter. This robust performance represents a significant 48.4% increase from Q2 2022.
Market dynamics: Tesla still on top
Despite facing increasing competition, Tesla continues to hold as the largest seller of EVs in the U.S. The automaker sold over 175,000 units, showing a healthy 34.8% quarter-over-quarter increase. However, Tesla’s share of EV sales has seen a slow but steady decline. In Q2, Tesla’s EV share fell below 60% for the first time — Tesla’s total market share, about 4%, continues to rise as EV adoption grows.
The challengers rise
While Tesla continues its dominance in the EV market, new players are making their presence felt. For example, GM, Ford, and Hyundai are slowly gaining traction. The relatively new entrant Rivian for example produced 13,992 vehicles at its manufacturing facility in Normal, Illinois and delivered 12,640 vehicles during the same period.
Product breakdown: Tesla Model Y leads the pack
The Tesla Model Y leads as the most sold EV in America, with one out of every three EVs sold last quarter being a Model Y. However, the once-leading Tesla Model S has lost its throne as the best-selling high-end EV to the newcomer, the BMW i4 EV sedan.
Filling the infrastructure gaps
The growth of EV sales and the efforts to bridge infrastructure gaps remain the two key narratives of the industry. As more EVs hit the road, there’s an increasing need to rethink production facilities, labor contracts, and vehicle transportation logistics to better support the EV market.
Future of EVs: dealers remain cautious
While consumers are showing interest in EVs, dealers remain cautious. A recent survey by Cox Automotive indicated that while 50% of shoppers were interested in purchasing an EV, only 31% of dealers believe in a future dominated by EVs.
EV market landscape and challenges ahead
Despite the impressive sales figures, the EV market landscape is far from secure. Inventory levels for EVs in late June 2023 exceeded the 100-day supply mark. As we continue to build EVs, the true challenge lies in maintaining and growing their sales.
While the U.S. EV market has made significant strides, the future trajectory is uncertain. The need for increased collaboration and adaptability within the industry is crucial to overcome potential obstacles and ensure sustainable growth.