Tesla and GM Drive Record U.S. EV Sales as Federal Incentives Cease
Tesla and General Motors (GM) have achieved record sales in the U.S. electric vehicle (EV) market this year, ahead of the expiration of crucial federal incentives. These incentives, which reached up to $7,500 per vehicle, ended in September 2023. Data from Motor Intelligence shows significant growth in EV sales, reaching over 1 million units within the first three quarters of the year.
Tesla and GM Lead U.S. EV Sales
During the third quarter of 2023, U.S. EV sales surpassed 438,000 units, marking a quarterly record and a 10.5% market share for electric vehicles. This is a noticeable increase from 7.4% in the previous quarter and 7.6% early in the year. Estimates suggest that sales of all-electric vehicles could hit 1.3 million by 2024, maintaining an approximate market share of 8%.
Tesla’s Market Position
Tesla remains the leading player in the U.S. EV market, although its market share decreased to 43.1% from 49% at the end of 2022. This decline reflects growing competition as new electric models enter the market.
GM’s Impressive Gains
General Motors has significantly increased its market presence, rising from 8.7% at the beginning of the year to 13.8% by September 2023. GM reported sales of 144,668 EVs, accounting for 6.8% of its total U.S. sales. Duncan Aldred, President of GM North America, emphasized the company’s robust lineup of both internal combustion engine and electric vehicles.
Other Competitors in the Market
Following Tesla and GM, Hyundai holds an 8.6% share of the U.S. EV market. Ford comes next at 6.6%, followed by Volkswagen (5.4%), Honda (4.6%), and BMW (3.6%).
- Tesla: 43.1% market share
- GM: 13.8% market share
- Hyundai: 8.6% market share
- Ford: 6.6% market share
- Volkswagen: 5.4% market share
- Honda: 4.6% market share
- BMW: 3.6% market share
Emerging EV Manufacturers
EV startups like Rivian Automotive and Lucid Group are struggling to gain substantial market share. As of September 2023, Rivian held a 3% share while Lucid remained below 1%.
Future Market Outlook
The end of federal EV incentives is expected to alter sales dynamics drastically. Analysts predict that the industry’s market share for EVs could drop to around 5% after the incentive program concluded. Historically, this could create fluctuations in EV sales, reminiscent of boom-and-bust cycles seen in the market.
Amidst these developments, the U.S. continues to lag compared to global leaders in EV adoption. The International Energy Agency reported that China led EV sales worldwide in 2022, with 6.4 million units sold, followed by Europe at 2.2 million. As the U.S. navigates this changing market landscape, its major automakers aim to adapt and innovate in the competition for EV leadership.
