Tesla Dominated US EV Market in Q3 with 50% Share, as Segment Experienced 50% YoY Growth

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【Summary】Tesla held a 50% share of the US EV market in Q3 2023, despite a production decline. The overall EV market grew by 50% YoY, with over 300,000 EV registrations. Tesla's sales rose 19.5% YoY, outpacing the industry, but its share of the EV segment fell to 50% due to a planned production pause. Tesla's opening of its Supercharger network and price reductions have stimulated EV development by other manufacturers. Ford is the second-largest seller of electric vehicles in the US.

FutureCar Staff Oct 15, 2023 4:16 PM PT

Tesla Dominated US EV Market in Q3 with 50% Share, as Segment Experienced 50% YoY Growth

Tesla holds a 50% share of the US EV market in Q3 2023, despite experiencing a decline in production last quarter. The overall EV market saw a significant growth of 50% year-on-year, with over 300,000 EV registrations in Q3.

The third quarter of the year witnessed another record-breaking period for electric vehicle sales in the US. According to estimates from Kelley Blue Book via Cox Automotive, a total of 313,086 electric vehicles were sold in Q3. This represents a 49.8% increase compared to the same period last year and surpasses the 298,039 units sold in the second quarter. This positive trend can be attributed to the introduction of 14 new electric vehicle models, which were not available a year ago, thereby boosting sales for most automakers.

Electric vehicle sales accounted for a new record of 7.9% of the auto market in the third quarter. This is a significant increase from the 6.1% share observed during the same period last year and the 7.2% share in the previous quarter. Cox Automotive attributes this continued linear growth in electric vehicle sales to higher inventory levels, greater product availability, and downward pricing pressure. Tesla played a crucial role in initiating a price reduction, which was followed by other competitors in the industry, making their electric vehicles more appealing to consumers.

Despite experiencing a decline in production, Tesla's third-quarter sales increased by 19.5% year over year, surpassing the overall industry growth rate of 16.3%. However, Tesla's share of the electric vehicle segment dropped to 50% in the third quarter due to the planned pause in production for factory retooling. This temporary shutdown affected both production and delivery indicators. Nevertheless, Tesla has plans to ramp up production in the upcoming quarters and will also launch the highly anticipated Cybertruck, which will contribute to increasing the company's share of the automotive market.

It is worth noting that Tesla has played a significant role in stimulating the development of electric vehicles by other manufacturers. Additionally, by opening its Supercharger network to other companies' electric vehicles, Tesla has made competitors' offerings more attractive. Tesla continues to drive the widespread adoption of EVs and the transition away from internal combustion engine vehicles. Therefore, a decrease in its share of the EV market should not come as a major surprise.

In the third quarter, Tesla remains the dominant leader in electric vehicle sales in the US, with Ford coming in second place, selling just over 20,000 electric vehicles.

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Article edited by @SmokeyShorts; follow him on Twitter

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