Tesla Took 50% Share of US EV Market in Q3, as Segment Grew by 50% YoY

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Tesla holds a 50% share of the US EV market in Q3 2023, despite production declines last quarter. The overall EV market grew 50% year-on-year, with more than 300,000 EV registrations in Q3.

Electric vehicle sales in the US set another record in the third quarter. Total electric vehicle sales in the third quarter reached 313,086, according to Kelley Blue Book estimates (via Cox Automotive). This is up 49.8% from the same period a year ago and more than the 298,039 sold in the second quarter, which is a positive trend. Most automakers showed significant growth compared to 2022. The third quarter saw the introduction of 14 new electric vehicle models that did not exist a year ago, also boosting sales.

Electric vehicle sales accounted for 7.9% of the auto market in the third quarter, a new record. During the same period last year, the share of EVs reached 6.1%, and in the last quarter it was 7.2%. Higher inventory levels, greater product availability, and downward pricing pressure have helped drive continued linear growth in electric vehicle sales in the US market, Cox Automotive said. Tesla was the one to start lowering prices, and competitors in the industry followed suit, making their products more attractive to consumers.

Tesla's third-quarter sales rose 19.5% year over year, outpacing the overall industry growth rate of 16.3%. However, Tesla's share of the electric vehicle segment fell to 50% in the third quarter. The company paused production at its factories last quarter for retooling. This reduced overall production indicators and, accordingly, delivery indicators. The temporary shutdown was planned and investors were warned about it, so there were no surprises. In the coming quarters, Tesla will continue to increase production and will also launch the long-awaited Cybertruck. This will help increase the producer's share of the automotive market.

It is worth noting that Tesla stimulated the development of EVs by other manufacturers. In addition, the opening of its Supercharger network to other companies' electric vehicles has made competitors' electric vehicles more attractive. Tesla is truly driving the widespread adoption of EVs and the transition away from internal combustion engine vehicles. That is why a decrease in its share in the EV market should not be a big surprise.

In the third quarter, Tesla remains the undisputed leader in electric vehicle sales in the US. Ford is second on the list, selling just over 20,000 electric vehicles.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts; follow him on Twitter

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