Electric Vehicles: Soaring off Lots Despite Doubts in Demand

The electric vehicle market in the United States has seemed to be volatile over the past few months, with reports and studies done that indicate a lack of consumer interest. However, there has been a remarkable growth in electric vehicle registration, reaching 7.4% of overall market share growth in the first three quarters of 2023. Despite the lingering apprehension around the electric vehicle revolution, EVs appear to be flying off dealership lots. 

Tesla Continues To Dominate but Loses Share

Tesla Inc. has always been considered a dominant force in the EV market, and they retained a lead in market shares in 2023. There was a 61% surge in electric vehicle registrations totaling 852,900 for vehicles from January to September in 2023. 

Tesla sold 57.4% of these vehicles. However, this number is down from the 65.4% EV market share that they took home in 2022. This 5.4% drop shows that other automakers are stepping up their game and beginning to claim more of the EV market. 

Rise of Tesla Competitors

Chevrolet secured the second position in EV registrations, climbing from 4.1 percent to 5.9 percent market share with an impressive 133% volume increase in the past nine-month period from January to September 2023. 

Ford, who ranks third, saw a slight decline in market share despite a 24% rise in registrations to 46,547 vehicles, trailing the overall EV segment's growth rate.

Hyundai and BMW also saw remarkable growth. Hyundai experienced a rise from 4% to 4.8% market share, and BMW's share soared from 1.2% to 3.7%. Both of these automakers more than doubled their registrations compared to the previous year.

Short Term Market Demand Concerns

While the EV market is undeniably growing, Cox Automotive warns about the production of new electric vehicles outpacing consumer acceptance. Major players, like General Motors and Ford, have announced that they are slowing down electric vehicle investment to line with short-term demand concerns.