In the second quarter of the year, the U.S. auto industry witnessed impressive growth, particularly in the battery-electric-vehicle (EV) sector. Americans purchased a remarkable 295,255 battery-electric vehicles during this period, as shared in Cox Automotive’s second-quarter electric-vehicle summary. This represents a substantial increase of approximately 14% compared to the first quarter of 2023.
Furthermore, year over year, U.S. EV sales surged by around 50%, reaching an impressive 196,788 units in the second quarter of 2022.
Several factors contributed to this surge in sales. Lower prices, new tax incentives introduced by the federal government, and the availability of a broader range of EV models actively drove consumer adoption. In the second quarter, eleven models surpassed the 5,000-unit mark, compared to only six models during the same period last year. Excluding Tesla vehicles, seven models achieved more than 5,000 units sold in the quarter, up from two models a year ago. Interestingly, Tesla’s Models S, 3, X, and Y all exceeded the 5,000-unit milestone in both the 2022 and 2023 second quarters.
Tesla’s Model Y continues to reign supreme, capturing a significant 36% share of the U.S. EV market. Impressively, Tesla sold 105,158 units of the Model Y, reflecting a robust year-over-year increase of 76%.
As for the second most popular EV in the market, that distinction goes to Tesla’s Model 3, with 57,837 units sold in the quarter. However, its sales growth was relatively slower compared to the overall market’s expansion, with a modest increase of only 6% year over year.
Although Elon Musk’s company experienced a minor decline in market share relative to its competitors, no significant contender has emerged as a clear number-two player just yet. According to the Cox Automotive report, Tesla’s overall U.S. EV market share slipped from 62% in the first quarter to 59% in the second quarter of the year. Despite this, Tesla still achieved an 8% quarter-over-quarter sales increase, albeit slightly below the market’s impressive growth rate of 14%.
Tesla’s Market Share Grows, Ford and GM Decline
In recent market developments, Tesla has made significant gains against its competitors, Ford Motor and General Motors (GM). During the second quarter of 2023, Ford and GM’s combined market share fell from 12% in the previous quarter to around 10%.
Chevy Bolt Leads Non-Tesla Vehicles
The top-selling non-Tesla vehicle in the second quarter was the Chevy Bolt, with an impressive 13,959 units sold. It secured the third position overall. Following closely behind was the Ford Mustang Mach E, selling approximately 8,600 units.
Ford’s Challenges Impact EV Sales
Ford faced some setbacks in EV sales due to battery issues with their F-150 Lightning pickup in the first quarter. Consequently, the Rivian R1T maintained its position as the best-selling electric truck in the U.S. for the second consecutive quarter. Rivian Automotive sold 10,239 pickups, while Ford sold 4,466 Lightnings. However, it’s worth noting that the Lightning had previously surpassed the R1T sales in the fourth quarter of 2022.
Steady EV Penetration and U.S. Car Sales Growth
Overall EV penetration in new car sales remained steady at around 8% during the second quarter. This stability coincided with a 14% increase in overall U.S. car sales, according to industry reports and Benchmark Research.
Strong Performance of U.S. Car Stocks
Growing EV sales have had a positive impact on U.S. car stocks recently. Shares of GM and Ford have seen respective increases of 16% and 20% over the past three months. Meanwhile, Tesla and Rivian shares have experienced significant gains of 51% and 88% over the same period.
Furthermore, the S&P 500 and Dow Jones Industrial Average have also experienced modest gains of approximately 9% and 1%, respectively.
