Although further development into the mainstream may still be elusive, the US’s EV Sales transformation last quarter achieved yet another significant milestone. Tesla’s lead at the top is reducing as a result.
US EV sales in the third quarter surpassed 313,000, over a 50% rise from a year earlier and around 15,000 higher than the 298,000 sold in Q2, according to automotive research company Kelley Blue Book (KBB). The EV market share increased from 6.1% to 7.9%, which is the greatest level ever, according to Cox Automotive (the parent company of KBB).
According to Jonathan Smoke, senior economist at Cox Automotive, “higher inventory levels, more product availability, and downward pricing pressure have helped spur continued linear growth of EV sales in the US market.”
Total EV sales for the year crossed 250,000 three years ago, and according to KBB, EV sales this year are expected to surpass 1 million. 14 new EV models are now available, according to KBB, and manufacturers including Volvo, Nissan, Mercedes, and Hyundai reported EV sales increases of more than 200%, albeit in relatively small numbers.
Gains for several established automakers that have entered the EV industry were even more significant. In the third quarter, Hyundai’s EV sales in the United States more than tripled, giving the South Korean automaker a 6.3% market share. Mercedes’ (MBGYY) market share reached 3.3% as sales nearly doubled, while BMW’s (BMWYY) market share increased to 4.2% as EV sales tripled in the third quarter from a year earlier.
In the third quarter, sales of electric vehicles made up 7.9% of all sales in the U.S. car sector, compared to 6.1% a year earlier. According to a forecast by Cox Automotive, the number of EV goods available to consumers will quadruple by 2027 as a result of new competitors joining the market and the proliferation of EV models.
Price Reduction of Tesla EV Sales
The price reduction that Tesla has aggressively implemented over the past year or so have coincided with the company’s increase in overall sales. “Tesla reduced prices, which are now about 25% lower year over year, in an effort to boost sales volume. Price reductions have been beneficial, according to KBB’s study.
Ford has also reduced the cost of its Mustang Mach-E SUV and Ford Lightning EV pickup; nonetheless, overall EV pricing in the US remain high, which is a major worry for buyers. According to KBB, the average transaction price (ATP) of an EV was $50,683, down significantly from the $65,000 it was a year ago but still higher than the price of gas-powered vehicles, which are still available for under $30,000.
