Cooling Trend Hits Previously Hot EV Brands, Except Tesla

Courtesy of Tesla, Inc.

Despite a healthy surge in U.S. electric vehicle sales, some startups and traditional automakers that topped the EV charts last year are experiencing a slowdown, according to new registration data from Experian.

The first five months of the year witnessed a 68% jump in new EV registrations, hitting a record of 447,514 vehicles. However, the data shows that market leader Tesla accounted for about half of this increase, reports Automotive News.

The once-booming EV brands, including Ford, Kia, and Lucid, are experiencing a cool-down period, as Tesla continues to sell 6 out of every 10 EVs in the U.S. Additionally, brands such as Cadillac and Porsche, which had a grand market entry, are now at the lower end of the 25 brands appearing in the latest registration data.

EVs rose to a 7% share of the U.S. light-vehicle market in the first five months of the year, up from 4.6% a year earlier. Yet, industry analysts predict harder times ahead as consumers grapple with relatively high prices and interest rates.

Significant drops by companies include the following according to Automotive News:

• Ford: Despite its Mustang Mach-E compact crossover being one of the best performers last year, the first five months of 2023 saw sales fall compared to the same period last year. Furthermore, despite its F-150 Lightning pickup still growing in sales, the brand’s EV registrations growth pace lagged behind the overall EV market growth.
• Kia: Another hot EV brand last year, Kia experienced a decline in fortunes during the first five months of the year with new registrations of its EV6 compact crossover dropping by 29%.
• Nissan: Registrations for the Nissan Leaf hatchback fell by 48% in the January-to-May period. Although the company added a new model, the Ariya compact crossover, the total EV registrations remained almost flat.
• Lucid Motors: The EV startup saw its new registrations rise 234% in the first five months of the year, but the brand is not keeping up with its 2023 forecast for 10,000 to 14,000 units of its sole model, the Air sedan.
• Cadillac: The brand generated 1,893 registrations for its Lyriq midsize crossover, but has fallen behind in its production plans. Cadillac ranks 19th in EV registrations out of 25 brands.
• Porsche: The highly acclaimed Taycan sedan saw registrations fall 26% in the five-month period.

Overall, the key issue remains affordability, as EVs typically carry higher average prices than their gasoline-engine counterparts. While the interest in EVs is rapidly increasing, the gap between consideration and sales remains wide, according to a midyear market report by Cox.

On Monday morning, Ford announced price drops across the board for its F-150 Lightning electric truck, a move seen to spur demand.