In addition to establishing a stranglehold on the US electric vehicle industry, Tesla is expanding its presence in the global auto sector.
Cox Automotive and Kelley Blue Book reported that in 2023, Tesla’s market share in the US climbed to 4.2% from 3.8%. According to Cox’s estimations, 654,888 Tesla cars were sold in the US in 2023, representing a staggering 25.4% increase from 2022. This led to a 4.2% market share.
According to the report, the electric vehicle industry is shifting toward more intense competition. German high-end automakers are making great strides in the electric vehicle market. In 2023, electric cars accounted for 12.5% of BMW sales. Similarly, electric vehicle sales increased for Audi (11.0%) and Mercedes-Benz (11.4%). As for non-luxury names, Volkswagen dominated the electric vehicle market, accounting for 11.5% of total sales.
Although Tesla’s market share has grown significantly, the company’s profitability has taken a hit. Despite a decline in the average transaction price from almost $60k at the start of 2023 to $50,051 by year’s end, Tesla’s sales increased.
Cox claimed that total EV sales in the nation surged 46% from a year earlier.
The competitive environment for electric vehicles is about to change significantly, which bodes well for EV sales in the future but puts pressure on leading US EV vendors like Ford and Tesla. Based on his projections, Cox predicts that 37 new electric vehicle models will be unveiled in 2024 and more in 2025, for 70 new EVs in the next two years.
The US auto sales industry will show signs of improvement in 2024 despite challenges, including high financing costs and increased prices. Cox predicted that new car sales will reach 15.7 million in 2024, up from 15.5 million in 2023. Fleet sales, additional lease volume, and increased lease penetration will boost the sales statistics. Leasing is considered a way to mitigate increasing pricing by offering cheaper payments to customers.
