Tesla dominates U.S. Electric Vehicle market in H1 2023

In the first half of 2023, the U.S. electric vehicle (EV) market has witnessed a remarkable dominance by Tesla, outperforming all of its competitors combined. This data, sourced from S&P Global Mobility and illustrated in the following graphic, unveils a stark picture of the EV landscape in the country.
During the period from January 1 to June 30, 2023, Tesla achieved record-breaking sales, delivering a total of 325,291 electric vehicles in the United States. Notably, this number surpasses the collective sales of all other automakers, marking a significant achievement for the electric car manufacturer.

Here’s a breakdown of the top EV manufacturers’ sales in H1 2023:

– Tesla: 325,291
– General Motors (GM): 37,164
– Volkswagen Group: 29,137
– Ford: 26,849
– Hyundai Motor Group: 22,875
– Rivian: 17,969
– BMW: 17,512
– Mercedes-Benz: 16,287
– Volvo Polestar: 12,995
– Nissan: 8,444
– Toyota Motor Corp.: 6,039
– Lucid: 3,191
– Subaru: 2,946

These numbers highlight the overwhelming lead that Tesla has taken in the EV market, with its sales being 61.5% greater than the combined sales of its competitors, which totalled 201,408 electric vehicles.

One of the key drivers behind Tesla’s outstanding performance is its ability to continually reduce prices on popular models like the Model Y. These price reductions have been possible due to the company’s robust profit margins. In a previous analysis, it was revealed that Tesla earned substantial net profits of $9,574 per vehicle sold, significantly higher than its competitors, such as GM ($2,150), Toyota ($1,197), and Volkswagen ($973).

Tesla initiated its first round of price cuts in 2022, followed by several more throughout 2023. These strategic price reductions have created substantial competitive pressure, particularly on rivals like Ford, who are grappling with profitability issues in the EV sector. For instance, Ford’s EV division, Ford Model e, incurred losses of $900 million in 2021, $2.1 billion in 2022, and an expected $3 billion in 2023.

In addition to competitive pricing, Tesla has benefited from the Inflation Reduction Act of 2022, which revised tax credits for EVs in the United States. As per the legislation, EVs and their batteries must now be assembled in North America to qualify for these tax credits. This significant change has worked in favor of Tesla, as many foreign competitors, including VW, BMW, and Hyundai, no longer qualify for these credits.

In summary, Tesla’s exceptional sales performance in H1 2023 underscores its leading position in the U.S. electric vehicle market. The combination of competitive pricing and favorable legislative changes has further solidified Tesla’s market dominance, leaving its competitors with an uphill battle to catch up.

Source: Visual capitalist

Source: Visual capitalist 
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