Tesla is unquestionably dominant; nevertheless, are its competitors catching up?
People in the United States are increasingly purchasing electric vehicles. In fact, according to Kelley Blue Book (KBB), Americans bought nearly twice as many electric cars in the first four months of 2022 as they did in the first quarter of 2021, and the floodgates are just opening. For the first time, electric vehicles (EVs) accounted for more than 5 percent of all new automobile sales in the United States during the third quarter.
Despite a long list of attractive new electric vehicles entering the market, it is evident that Tesla remains the undisputed market leader. According to KBB, Tesla was responsible for around 75% of all-electric cars sold in the United States in the first quarter of 2022. Furthermore, the Tesla Model Y and Tesla Model 3 alone accounted for 68 percent of all sales in that period.
Working your way down the list, KBB demonstrates that it becomes more apparent just how far ahead Tesla truly is. For example, about 48,000 Model 3 sedans were purchased in the United States last quarter, putting it in the second position behind the Tesla Model Y sedan. Meanwhile, Ford sold around 7,000 Ford Mustang Mach-E electric crossovers in the top three spots, putting the company in third place.
According to Edmunds, "Tesla's rear-view mirror is becoming increasingly congested."
Indisputable evidence exists that this assertion is correct. As we have stated several times, there are many attractive electric vehicles (EVs) on the market today, which was not the case only a few years ago. In addition, many more are on the way, with some arriving very soon in the future. Tesla only has four models, and only two of them are electric cars popular enough to sell in large numbers. Elon Musk, the CEO of Tesla, has said that there will be no new models in the foreseeable future.
Consumers in the United States purchased 18 different electric vehicles in the first quarter of 2021, according to KBB data. In 2022, Americans purchased 32 other electric vehicle models over the same time. So by 2022, 50 all-electric vehicles may be available for purchase on our shores.
Kelley Blue Book is a research tool for vehicles that provides reference information. It is undeniable that Tesla's lead has a great deal to do with the company's significant head start. Even though competitors are entering the market on a far more frequent basis, none are experiencing sales comparable to Tesla's. In addition, the fact that electric vehicles (EVs) exist and the fact that there are several alternatives to Tesla is becoming much more well known by the public.
Please bear in mind that Tesla's automobiles are pricey, and the company's pricing is constantly being increased. Because of the tremendous demand, most consumers must wait many months before receiving their order. In addition, it is only possible to purchase a Tesla if you complete the entire transaction online or visit a Tesla store, which is few and far between in many places. Furthermore, several jurisdictions still require customers to go through a slew of hoops to get a Tesla. Finally, Tesla's vehicles are no longer qualified for the federal EV tax credit previously available.
Meanwhile, the Kelley Blue Book points out that a car such as the Hyundai Ioniq 5, which has received a slew of honors, is far less expensive than Tesla's vehicles. It has a beginning price of $44,000 instead of the Tesla Model Y's starting price of $63,000. Even the Tesla Model 3 costs $47,000 to buy and operate. As you can see, even without taking into account the $7,500 electric vehicle tax credit, there are attractive alternatives that are less expensive than Tesla's offerings.
Regardless of the preceding, if customers cannot obtain one of these new electric vehicles, the possibilities of a firm such as Hyundai outselling Tesla with its EVs in the United States are dim. But unfortunately, many of the most recent electric cars and SUVs in the United States are extremely hard to get, and many of them have significant dealer markups. In addition, the pandemic, the chip scarcity, overall supply chain constraints, and other factors have made things substantially more difficult to manage.
Kelley Blue Book brings the argument to a close with a piece about electric pickup trucks. As you may be aware, the Tesla Cybertruck was unveiled some years ago and may perhaps be available for purchase. But instead, it was postponed until the following year. In contrast, Rivian has already introduced the Rivian R1T to the market, and the GMC Hummer EV has also appeared on the scene. Ford will formally debut its F-150 Lightning electric pickup truck today.
In an area where Tesla has unquestionably been the early mover on several occasions, other brands have now surpassed it in terms of market penetration. First movers frequently win, even when the electric trucks described above are either completely sold out or have a very long waiting list to be considered.
