Tesla maintained its giant lead over every other automaker in electric car sales in the third quarter, but the field is moving faster than the leader. Tesla sold 50% of the electric vehicles (EVs) purchased in America last quarter.
Americans bought more than 300,000 EVs for the first time last quarter. Year-to-date EV sales through September reached just over 873,000, putting the market firmly on track to surpass 1 million for the first time.
Sales will likely cross the 1 million mark before Thanksgiving.
EV Sales Up Nearly 50% From One Year Ago
Total EV sales in Q3, according to an estimate from Kelley Blue Book, hit 313,086, a 49.8% increase from the same period one year ago and an increase from the 298,039 sold in Q2.
EVs made up 7.9% of all car sales between July and September – a record and a jump of 0.7% from second-quarter numbers.
EV transaction prices in Q3 were down significantly from 2022. In an attempt to increase sales volume, Tesla slashed prices, which are now down roughly 25% year over year.
Tesla Sales Growing, But So Is List of Competitors
But the big news may be Tesla’s shrinking margin. Tesla sales grew by 19.5% last quarter. But so many competitors have entered the mix that even growing sales mean a shrinking lead.
Tesla controlled 75% of the EV market as recently as the second quarter of last year.
The company’s long-promised Cybertruck may be nearing production, which could help it regain some market share.
But Tesla’s problem isn’t that any one company is doing well. It’s that so many competitors are entering the race.
Some Competitors Grew 200% or More
Most automakers posted sizeable gains in EV sales over 2022, with Volvo, Nissan, Mercedes, and Hyundai delivering increases above 200%, thanks mostly to new products entering the market. Fourteen new EV models that did not exist one year ago made at least one sale last quarter, including the Chevrolet Blazer EV and the Silverado EV. The new Chevy EVs had very low sales – just an initial few.
The German luxury makes – Audi, BMW, and Mercedes – continue rapidly increasing EV model sales. In Q3, BMW and Mercedes EV sales more than triple year-ago levels, while Audi posted an EV sales gain of 94%.
The flood of EVs into the market is just beginning. Kelley Blue Book analysts expect the number of available EVs to double by 2027.
While automakers are offering more EVs by the day, consumer interest is growing more slowly. Slowly growing infrastructure and the gradual rollout of government incentives mean car shoppers are less enthusiastic about EVs than automakers at the moment. But adoption of new technologies follows a cycle where this trough is normal.
