Tesla has unsurprisingly remained the undisputed leader in the US electric vehicle (EV) market, with the Model Y and Model 3 leading the charge in 2023. The dominance by the Model Y and Model 3 helped the United States hit a new high-water mark, with nearly 1.2 million EVs sold last year.
Leading the way was the Model Y, which accumulated 394,497 sales over the course of the year. In second place was the Model 3, which had 220,910 sales in 2023, giving the two EVs a total of 615,407 sales, according to data from Kelley Blue Book. In a distant third place was the Chevy Bolt EV and EUV with 62,045 sales. The lead by the Model Y and Model 3 was so large that their sales total was more than the next eight closest competitors, combined.
Tesla’s dominance is marked by a 55% share of all EVs sold in the US, a slight dip from 65% in 2022. Despite this, price reductions have kept Tesla firmly in the lead, particularly with the Model Y and Model 3 models becoming more accessible. Remarkably, the Model Y alone accounted for one in every three EVs sold in 2023.
The competitive landscape is evolving however, with luxury German automakers carving out their own space in the EV market. Notably, 12.5% of all BMWs sold last year were electric. Mercedes-Benz and Audi are not far behind, with their EV sales making up 11.4% and 11.0% of their total sales, respectively. Volkswagen is leading the charge among non-luxury brands, with EVs making up 11.5% of its total sales for the year.
The growth of the EV segment in the US is significant, with EVs now accounting for 7.6% of the total US vehicle market, up from 5.9% the previous year. This surge is underpinned by a record-setting final quarter, where EV sales soared 52% higher than the same period in 2022.
All of this data comes on the backdrop of major US automakers saying their is a slowdown in demand for EVs. In the US Ford said it was delaying as much as $12 billion in EV investments and slashing F-150 production due to waning demand, while General Motors (GM) announced it was slowing the launch of several EV models and cutting back on EV product spending.
