Despite the promises from legacy automakers to boost their electric vehicle (EV) production and sales, Tesla's dominance in the US EV market remains unwavered. According to data from Motor Intelligence, Tesla is approximately 300,000 units ahead of its closest competitors, Hyundai and General Motors. This gap has increased since the first half of 2022 when it was around 225,000.
Tesla has been able to maintain its leadership position through significant sales growth, with an estimated 336,892 vehicles sold in the U.S. during the first half of the year, reflecting a 30% increase from the previous year. The growth has been driven by production at Tesla's new plant in Texas. Tesla's Model Y has become the world's best selling car in the first quarter of 2023.
Tesla's market share of U.S. EV sales dropped to 60% due to the entry of new competitors and overall market growth. Despite this, Tesla's global deliveries surpassed 889,000 EVs during the first half of the year. The company is aiming to produce at least 1.8 million electric vehicles in 2023, as indicated by CEO Elon Musk.
Meanwhile, Hyundai and General Motors have seen some gains but remain far behind Tesla. Hyundai, including its subsidiary Kia, managed to increase its EV sales by approximately 11% to 38,457 units. GM more than quadrupled its EV sales to 36,322 units in the first half of this year.
However, the vast majority of GM's EV sales were of its outgoing Chevrolet Bolt models, set to be discontinued later this year. The slow production ramp-up of its newer EV models has been a point of criticism. Despite these challenges, GM plans to roll out more mainstream EV launches in the coming year and aims to catch Tesla in sales by mid-decade.
Overall, Tesla's continued dominance illustrates the strength of its strategy and execution, even as more competitors enter the EV market. The company is set to continue leading the EV revolution, with strong growth projections for the coming years.