People in the US are buying more electric cars. In fact, according to Kelley Blue Book (KBB), Americans bought nearly twice as many EVs in Q1 2022 as they did in Q1 2021, and the floodgates are just beginning to open. EVs, for the very first time, made up over 5 percent of all car sales in the US over the quarter.
It remains abundantly clear that despite a long list of compelling new EVs coming to market, Tesla is still the dominant leader. KBB goes on to share that some 75 percent of all electric vehicles sold in the States in Q1 2022 were produced by Tesla. Moreover, 68 percent of those sales were just the Tesla Model Y and Model 3 alone.
KBB shows that working down the list makes it even more clear how far ahead Tesla really is. US shoppers bought almost 48,000 Model 3 sedans last quarter, giving it the second-place positing to the Model Y. Meanwhile, in the three-spot, Ford sold fewer than 7,000 Mustang Mach-E electric crossovers.
With all of that said, KBB writes:
"Yet, Tesla’s rear-view mirror is getting crowded."
There's no doubt this statement is true. As we repeatedly share, there are many compelling EVs on the market today, which wasn't true just a few years ago. Plus, many more are on the way, and some are coming very soon. Tesla only has four models, and only two of them sell in high volume. CEO Elon Musk has made it clear that there are no new models coming in the near future.
According to KBB's research, people in the US bought 18 various fully electric models in the first quarter of 2021. Over the same time period in 2022, Americans bought 32 different EV models. By the end of 2022, there could be 50 all-electric models selling on our shores.
Kelley Blue Book is clear that Tesla's lead has a lot to do with its big head start. While it seems rivals are coming to market on a much more regular basis, none are seeing Tesla-like sales. However, people are becoming much more aware that EVs exist, as well as much more aware that there are plenty of options aside from Tesla.
Keep in mind that Tesla's vehicles are expensive, and the company keeps raising prices. Demand is so high that most people have to wait many months to take delivery. Buying a Tesla requires either dealing with everything online or visiting a Tesla store, which are few and far between in many areas. Moreover, some states still make people jump through all sorts of hoops to buy a Tesla. And, finally, Tesla's vehicles are no longer eligible for the federal EV tax credit.
Meanwhile, KBB points out that a vehicle like the Hyundai Ioniq 5, which has won a host of awards, is much cheaper than Tesla's models. It starts at $44,000 compared to the Model Y's ~$63,000 starting price. Even the smaller Model 3 is a $47,000 car. As you can see, even without factoring in the $7,500 EV tax credit, there are compelling rivals that are cheaper than Tesla's choices.
Regardless of the above, if people can't get one of these new EVs, the prospects of a company like Hyundai outselling Tesla with its EVs in the US seem challenging. Sadly, many of the newest electric cars and SUVs in the States are almost impossible to get, and many are seeing huge dealer markups. This has all been complicated significantly by the COVID-19 pandemic, the chip shortage, overall supply chain contraints, Russia's invasion of Ukraine, and more.
Kelley Blue Book closes its case by writing about electric pickup trucks. As you may know, the Tesla Cybertruck was revealed years ago, and could potentially be on the market by now. Instead, it has been delayed until next year. However, Rivian already brought the R1T to market, the GMC Hummer EV has also arrived, and Ford will officially launch its fully electric F-150 Lightning pickup truck today.
In a space where Tesla has arguably been the first mover over and over again, other brands have now beat it to market. First movers often win, though the electric trucks mentioned above are essentially already either sold out, or there's a very long waiting list. At this point, we'll hand it over to you for some thoughtful and engaging conversation in our comment section below.