New data from Experian reveals that Tesla continues to dominate the U.S. electric vehicle (EV) market, accounting for 59.5% of new EV registrations from January to July 2023.
The U.S. market share for electric vehicles rose to 7.2% during this period, with Tesla significantly contributing to the surge through aggressive pricing strategies. “Affordability remains the highest-scoring factor at 97, driven by aggressive pricing from Tesla,” said Elizabeth Krear, vice president of electric vehicle practice at J.D. Power, to Automotive News.
Tesla registered 390,377 new vehicles in the seven-month period, marking a 50% increase compared to the same timeframe last year. In July alone, Tesla had 60,769 new registrations, outpacing all other EV makers combined, who registered 48,566 new vehicles, according to Experian.
Despite Tesla’s market dominance, other automakers like BMW, Mercedes-Benz, and Rivian have also made significant gains in market share. However, brands like Ford, Hyundai, and Kia saw their market share slip amid increasing competition. Chevrolet and Ford followed Tesla in the rankings with 6.0% and 5.2% market shares, respectively.
The data also highlighted the performance of Tesla’s individual models. Registrations for Tesla’s Model Y compact crossover more than doubled to 236,041, largely due to price cuts and the reinstatement of the $7,500 federal tax credit. The Model 3 compact sedan saw a 21% rise in new registrations to 131,381. However, registrations for Tesla’s high-end models, the Model S and Model X, declined by 51% and 14%, respectively.
J.D. Power expects the EV market share to end the year at 9%, driven in part by Tesla’s pricing strategies and upcoming releases like the Cybertruck. Tesla’s aggressive pricing has not only bolstered its own market share but has also been credited with driving overall EV adoption in the United States.