electric vehicles experienced significant sales in the United States during 2023, with Tesla leading the pack in sales figures, surpassing a total of 1.2 million units.
In 2023, the electric vehicle (EV) market in the United States experienced significant growth, with EVs accounting for 7.6% of the total U.S. vehicle market. TSLA continued to lead the pack, but competition from other manufacturers intensified.
According to data released by various automakers, TSLA sold 55% of the electric vehicles purchased in the U.S. last year. Despite a slight decrease in its market share from 65% in 2022, the electric car giant managed to retain its top position thanks to an aggressive campaign of price cuts.
The average price paid for a new EV in December 2023 was $50,789, making TSLA's two most affordable cars - the Model Y SUV and Model 3 sedan - more accessible to a broader audience. The price cuts helped boost sales of these models, with one out of every three EVs sold in 2023 being a TSLA Model Y.
Among luxury brands, Mercedes-Benz and Audi increased their EV sales in 2023, accounting for 11.4% and 11.0% of their total brand sales, respectively. BMW also saw a growth in EV sales, with 12.5% of all new BMWs sold in 2023 being electric vehicles.
In the non-luxury segment, Volkswagen led with EV sales, accounting for 11.5% of its 2023 sales. The Volkswagen ID.4 sold 37,789 units last year, while the Ford F-150 Lightning and the Rivian R1S sold 24,165 and 24,783 units, respectively.
The vehicle manufacturer that sold the second most electric vehicles in the United States in 2023 was BYD. Despite TSLA holding the largest share, competition from manufacturers like BYD increased significantly. The Ford Mustang Mach-E and the Hyundai Ioniq 5 also saw strong sales, with 40,771 and 33,918 units sold, respectively.
Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, stated that the momentum for EVs is strong and expects the EV share of the total U.S. market to reach 10% in 2024. With more than 70 EV options expected to be available for consumers within the next two years, the future of the electric vehicle market looks promising.
In Q4 2023, EV sales hit a record for both volume and market share, with sales reaching 52% higher than in the fourth quarter of 2022. The increase in sales indicates a growing interest in electric vehicles among consumers, and the trend is expected to continue in the coming years.
As the electric vehicle market evolves, it will be interesting to see how the competition between manufacturers unfolds. With more affordable options becoming available and the increasing demand for electric vehicles, it's clear that the future of the automotive industry is electric.
