EV Sales See Steady Growth in the United States, Despite Tesla’s Decline
In May, the U.S. market for all-electric vehicles (EVs) continued its upward trend, although Tesla did not contribute to this growth. According to S&P Global Mobility data, cited by Automotive News, the number of battery-electric vehicle (BEV) registrations reached 104,916, marking a 9.6% increase from the previous year. Despite a 0.7% decline in the overall automotive market to 1.4 million units, the EV market share rose to 7.5%, the highest level achieved this year, compared to 6.8% a year ago.
Positive Trends Amidst Challenges
During the first five months of 2024, over 470,000 new all-electric cars were registered in the U.S. Although Tesla accounted for almost 232,000 of these registrations, the company’s numbers were down 12% year-over-year. Contrarily, the other 30 brands operating in the EV market saw their registrations rise by about a third.
It’s important to note that registration data tends to lag behind actual sales and deliveries by a few weeks but is a reliable sales proxy, given that not all sales figures are made public monthly.
Tesla’s Decline and the Boom of Non-Tesla EVs
In May, Tesla managed to register 48,587 new vehicles, a 15% decrease year-over-year. The EV market felt the pinch of Tesla’s drop, given the company’s significant market share. However, non-Tesla EVs filled in the gap, with their sales witnessing a remarkable 39% increase year-over-year to 56,329 units.
BEV Registrations in May 2024:
- Tesla (46.3% BEVs): 48,587 (down 15%)
- Non-Tesla (53.7% BEVs): 56,329 (up 39%)
- Total: 104,916 (up 9.6%), achieving a 7.5% market share (up from 6.8% a year ago)
First Five Months of 2024: Shifting Dynamics
From January to May 2024, a total of 471,021 new EVs were registered, reflecting a modest increase from the previous year. The market share for electric vehicles improved to 7.2%, compared to 6.9% in 2023. For the first time in years, non-Tesla EV registrations outpaced those of Tesla, claiming over half of the EV segment.
BEV Registrations in January-May 2024:
- Tesla (49.2% BEVs): 231,865 (down 12%)
- Non-Tesla (50.8% BEVs): 239,156 (up 35%)
- Total: 471,021 (up 5%), securing a 7.2% market share (up from 6.9% a year ago)
The Competitive Landscape
Despite the decline, Tesla remains the leading brand in the EV market. However, several other brands are rapidly growing their share. For instance, Kia’s EV registrations soared by 146% year-over-year, with companies like Rivian and Nissan seeing 87% increases, and Hyundai growing by 40%.
Top BEV Brands in May 2024 (YOY change):
- Tesla: 48,587
- Ford: 7,024
- Kia: 6,868
- Hyundai: 6,027
- Rivian: 5,172
- BMW: 4,570
- Chevrolet: 3,783
- Cadillac: 2,928
- Nissan: 2,572
- Mercedes-Benz: 2,412
The Role of Incentives in EV Sales
A significant portion of the recent EV sales was driven by substantial financial incentives. According to Motor Intelligence, some of these incentives could exceed $15,000. For example:
Example Incentives by Automotive News:
- Kia EV6: $16,812
- Kia EV9: $18,078
- Cadillac Lyriq: $17,732
- Tesla Model Y: $5,570
- Rivian R1T: $4,060
One year ago, comparable incentives were minimal, with the Cadillac Lyriq at $761 and the Tesla Model Y at $1,195.
Tom Libby, associate director of industry analysis at S&P Global Mobility, commented, "In terms of pure sales performance, EVs are making progress, but underneath the sales are huge incentives. They are not sustainable and are causing losses on the part of automakers."
Looking Ahead
The second half of 2024 may bring both opportunities and challenges. If Tesla doesn’t improve its performance or if non-Tesla brands reduce their incentives, the growth of the EV market might slow down or even reverse temporarily. Nevertheless, the increasing market share and robust performance of non-Tesla brands indicate that the EV sector is evolving rapidly, possibly leading to more diverse and competitive offerings for consumers.
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William Kouch, Editor of Automotive.fyi
