A Tesla Model Y, displayed at a Tesla car lot in Austin, Texas, has become the top-selling car globally in the first quarter of 2023. Legacy automakers, on the other hand, have been promising significant increases in the production and sales of electric vehicles (EVs), but their efforts have had little impact on the market. Despite an increase in sales compared to last year, Tesla remains the leader in EV sales and has even widened its lead over traditional automakers. It currently holds a lead of approximately 300,000 units over its closest competitors, Hyundai Motor and General Motors, during the first half of this year. This is a significant increase from the 225,000-unit gap in the first half of 2022.
According to Motor Intelligence, Tesla is estimated to have sold 336,892 vehicles to retail and fleet buyers in the U.S. during the first half of this year, marking a 30% increase from the previous year. Hyundai, including the Kia brand, saw an 11% increase in EV sales during the same period, totaling 38,457 units. General Motors, which held the second position in EV sales during the first quarter, experienced a more than quadruple increase in electric car and truck sales, reaching 36,322 units by June. Volkswagen also saw significant growth, with EV sales more than doubling to 26,538 units sold through June.
Ford Motor, which ranked second in EV sales last year following Tesla, secured the fifth spot with sales of 25,709 vehicles by June. However, Ford’s EV sales only increased by 12% compared to the previous year, partly due to the retooling of some production facilities. Ford’s Vice President of Sales, Distribution, and Trucks, Andrew Frick, expressed optimism about the growth of EV sales, especially with the improved inventory flow of the Mustang Mach-E crossover.
Although Tesla experienced a 30% year-over-year sales growth in the first half of the year due to the operation of its new plant in Texas, its market share of U.S. EV sales dropped by nearly 10 percentage points, representing 60% of domestic EV sales. This decline in market share can be attributed to the entry of more competitors into the EV market, resulting in overall market growth. EV sales in the U.S. increased by approximately 50% through June compared to the first half of 2022.
While legacy automakers and newer companies like Rivian Automotive have been trying to ramp up production of EVs, many of their outputs remain relatively small. With the exception of the top-selling brands, only five others hold a market share between 1% and 4%, while many others are below 1%, according to Motor Intelligence.
Tesla’s global deliveries reached over 889,000 EVs in the first half of this year, including 466,140 vehicles in the second quarter alone. The company plans to continue expanding its production and aims to manufacture at least 1.8 million electric vehicles in 2023. CEO Elon Musk has expressed optimism about the Texas factory, stating that it will become the highest-volume auto plant in the U.S. once fully operational. Musk previously stated that the Texas plant aimed to produce half a million vehicles annually by the end of 2023.
Hyundai’s second-place position in EV sales is noteworthy, especially considering that its vehicles do not qualify for federal EV tax incentives unless they are leased. Although this lack of incentives puts Hyundai at a disadvantage, the company has been leveraging leasing options to increase its EV sales. Leasing of Hyundai EVs has risen from around 2% at the beginning of the year to more than 30%, according to Hyundai Motor America CEO Randy Parker.
On the other hand, GM’s EV sales have been disappointing, particularly with regard to its new models featuring the “Ultium” battery technologies. The criticism stems from the slower production ramp-up of EVs like the GMC Hummer and Cadillac Lyriq. During the first six months of this year, the majority of GM’s EV sales were of its outgoing Chevrolet Bolt models, which will be discontinued later in the year. GM CEO Mary Barra acknowledged that the output of newer EVs has been constrained due to delays in domestic battery production. The company plans to catch up to Tesla in sales by the mid-decade by launching more mainstream EVs, including the Chevrolet Silverado, Blazer, and Equinox. They also have plans to introduce an electric delivery van and a high-end Cadillac EV called the Celestiq in 2023. GM aims to produce 150,000 EVs for the U.S. market this year.
In conclusion, while legacy automakers are making efforts to increase EV production and sales, Tesla remains the dominant player in the market. Tesla’s lead over traditional automakers has grown, and they continue to deliver impressive sales numbers. However, the overall EV market is experiencing growth, with more competitors entering the scene. Hyundai has made significant strides, despite not qualifying for federal tax incentives, and GM aims to catch up by expanding its EV lineup. The EV market shows promise, and consumers can expect to see more options from various manufacturers in the coming years.
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