A Tesla Model Y is seen on a Tesla automotive lot on May 31, 2023 in Austin, Texas. Tesla’s Model Y has grow to be the world’s best selling automotive in the primary quarter of 2023.Â
Brandon Bell | Getty Images
DETROIT – Legacy automakers proceed to vow big increases in production and sales of battery-electric vehicles, but their efforts up to now have done little to vary the highly watched, emerging market.
Despite notable upticks in sales compared with a yr ago, industry leader Tesla stays the highest EV seller and has grown its lead over legacy automakers. It’s roughly 300,000 units ahead of its closest competitors Hyundai Motor and General Motors through the primary half of this yr, in keeping with Motor Intelligence. That compares with a roughly 225,000 gap in the primary half of 2022.
The auto data firm reports that Tesla, which doesn’t release sales by region, is estimated to have sold 336,892 vehicles to retail and fleet buyers within the U.S. through the first half of the yr, a 30% increase from a yr earlier.
Meanwhile, Hyundai — including the Kia brand that is owned by the identical parent company — increased its EV sales by roughly 11% during that point to 38,457 units. GM, which was second in EV sales through the primary quarter, greater than quadrupled electric automotive and truck sales to 36,322 units through June compared with a yr earlier. And Volkswagen greater than doubled EV sales to 26,538 units sold through June.
Ford Motor, which was second in EV sales last yr behind Tesla, rounded out the highest five spots with sales of 25,709 vehicles through June, in keeping with Motor Intelligence. Ford’s EV sales were only up 12% compared with a yr earlier, because the automaker took downtime to retool some plants resembling a Mexican facility that produces its electric Mustang Mach-E crossover.
“Our EV sales proceed to grow. Improved Mustang Mach-E inventory flow began to hit at the tip of Q2 following the retooling of our plant earlier this yr, which helped Mustang Mach-E sales climb 110% in June,” Andrew Frick, Ford vp of sales, distribution and trucks, said Thursday in a sales release.
Tesla sales
Tesla’s 30% year-over-year sales growth through the first half of the yr was fueled by production at a recent plant in Texas coming online and ramping up. Nonetheless, that hasn’t been enough to maintain up with the EV market’s overall growth.
Tesla’s market share of U.S. EV sales dropped nearly 10 percentage points from a yr ago to represent 60% of electrical vehicles domestically sold, in keeping with the info from Motor Intelligence.
Tesla’s decline in market share comes as more competitors enter the sphere, leading to overall market growth. EV sales within the U.S. increased roughly 50% through June compared with the primary half of 2022.
Legacy automakers, in addition to newer corporations resembling Rivian Automotive, have been attempting to ramp up production of all-electric vehicles but lots of their outputs remain small. Except for the highest slots, only five others have between 1% and 4% U.S. market share, in keeping with Motor Intelligence. A number of others are under 1%.
Tesla’s global deliveries were greater than 889,000 EVs through the first half of the yr, including 466,140 vehicles through the second quarter. Its production is predicted to proceed to grow, as Tesla is aiming to provide at the least 1.8 million electric vehicles in 2023.
CEO Elon Musk has told shareholders that the Texas factory ought to be the highest-volume production auto plant within the U.S. once it’s fully ramped up. Last yr, Musk said the Texas plant was aiming to provide half one million vehicles annually by the tip of 2023.
Hyundai rises, GM disappoints
Hyundai’s second-place position is particularly notable considering that its vehicles don’t qualify for federal EV tax incentives of as much as $7,500 unless they’re leased. Those incentives, that are complex, are meant to profit EVs which can be produced in North America. EVs from Hyundai are currently imported from overseas.
The South Korea-based automaker has been leaning into that leasing loophole under the Biden administration’s Inflation Reduction Act. The Hyundai brand has increased leasing of its EVs from roughly 2% to start this yr and has now hit greater than 30%, in keeping with Hyundai Motor America CEO Randy Parker.
“It isn’t a fair playing field, and we’re definitely not completely happy about it. But those are the deck of cards which have been dealt and we’re attempting to play that deck as best as we will,” Parker said Wednesday during a call with reporters.
Hyundai Ioniq 5 on display on the Recent York Auto Show, April 13, 2022.
Scott Mlyn | CNBC
GM’s EV sales to this point have been disappointing, especially in the case of recent models with the automaker’s “Ultium” battery technologies. The automaker has been criticized for not ramping up production of its newest EVs resembling the GMC Hummer and Cadillac Lyriq quickly enough.
The overwhelming majority of GM’s EV sales through the first six months of the yr were of its outgoing Chevrolet Bolt models, which shall be discontinued later this yr.
GM CEO Mary Barra reiterated last week on the Aspen Ideas Festival that the corporate’s output of newer EVs has been constrained because of domestic production of its batteries that is taking longer than expected.
Barra has said GM plans to catch Tesla in sales by mid-decade, because the automaker rolls out more mainstream EV launches later this yr resembling the Chevrolet Silverado, Blazer and Equinox. It is also launching a recent electric delivery van and a $300,000-plus bespoke Cadillac EV called the Celestiq in 2023.
The Detroit automaker has said it plans to provide 150,000 EVs this yr for the U.S. market.
— CNBC’s Phil LeBeau and Lora Kolodny contributed to this report.
Disclosure: NBCUniversal News Group, of which CNBC is part, is the media partner of the Aspen Ideas Festival.
Correction: GM was second in EV sales through the primary quarter of this yr. A previous version of this text misstated that timeframe
Mary Barra, GM Chair and CEO, speaks through the unveiling of the Cadillac Celestiq electric-sedan in Los Angeles, California on October 17, 2022.Â
Frederic J. Brown | AFP | Getty Images
