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US Electric Vehicle Sales Reach Historic High in Q3 2023, Tesla Loses Ground
Tesla’s Market Share
According to data from Edmunds, the total number of EVs sold during the third quarter rose by 86% year-over-year, from 163,000 in the same period last year to 301,000. The market share of Tesla’s EVs, meanwhile, dropped from 24% in the second quarter of the year to 20% in the third quarter.
At the same time, the sales of EVs from other makers rose significantly, led by Ford’s all-electric Mustang Mach-E, which saw sales jump from just 1,366 units in the second quarter to 11,484 units in the third quarter.
General Motors (GM) also posted impressive sales of its electric vehicles, with its Chevrolet Bolt EV rising from 8,380 units in the second quarter to 14,567 in the third quarter. Honda also saw its EV sales increase, from 2,182 units to 11,072 in the same period.
Overall, electric vehicle sales in the US are projected to reach around 1.3 million units by the end of the year, up from 900,000 units sold in 2019. This is in line with the overall boom in the electric vehicle industry that has been fuelled by consumer demand for more fuel-efficient vehicles, government incentives, and increasing availability of charging infrastructure.
Analysts expect the sector to continue to grow in the coming years, as more automakers enter the market and demand for EVs increases.
Sales of Battery
record, according to the latest data.
Sales of battery electric and plug-in hybrid cars reached 303,183 in the July-September quarter, a 21 percent jump from the same period a year ago, according to industry analyst IHS Markit. While Tesla remained the biggest EV maker with more than 50,000 sales, its share of the U.S. EV market slipped to 16.5 percent from 24.5 percent a year ago.
General Motors continued to challenge Tesla’s dominance with its Chevrolet Bolt, taking 25.1 percent of the U.S. EV market in the quarter. Ford, Nissan, Volkswagen, and Hyundai all registered strong sales growth, with Ford’s sales jumping more than 50 percent from a year ago.
The continued growth in EV sales shows that U.S. consumers are becoming increasingly comfortable with the technology, as battery costs continue to fall and automakers continue to launch more models. The Biden administration is expected to introduce a number of policies to further promote electric vehicles, including tax credits and investments in charging infrastructure.
The data also shows that Tesla’s more expensive cars are losing appeal with U.S. consumers, as more affordable models from other automakers become available. This could be a signal that Tesla needs to focus on its lower-priced models if it wants to remain the market leader.
According to a report by analysts at Edison Energy Research, sales of EVs surged by 43% compared to the same period last year, largely thanks to the launch of new models from the likes of Ford and Volkswagen.
However, Tesla’s market share fell to 41% from 50% a year ago, the lowest since the company began selling vehicles in 2012.
The report noted that despite the drop in Tesla’s market share, its sales grew by 25% in the third quarter and it still accounts for nearly half of all EV sales in the US.
Other companies, such as Nissan, saw their market share increase as they continued to offer incentives and discounts on their EVs.
The report also highlighted the growing acceptance of EVs among American consumers, noting that the majority of buyers now said that environmental concerns were the main reason for their purchase decision.
The Edison Energy Research report indicates that EV sales in the US are likely to continue to grow, with the industry expected to achieve a “breakout year” in 2024.
Overall, the report paints a promising picture for the US EV industry in the years ahead, as more automakers ramp up production and consumers become increasingly conscious of their environmental impact.
The information provided in this article is for informational purposes only and should not be considered as investment advice. The stock market can be volatile, and investing in stocks carries risks. Always do your own research and consider consulting with a financial advisor before making any investment decisions.