Should Elon Musk Be Worried? Toyota, Hyundai, And Ford Challenge Tesla On Home Turf With More EVs On US Roads As Billionaire's Auto Giant Faces Sales Slump
While Tesla Inc‘s (NASDAQ:TSLA) sales in the U.S. have been dropping since the start of the year, South Korean automaker Hyundai Motor (OTC:HYMTF) and Japanese player Toyota Motor Corp (NYSE:TM) have been gaining ground in the country.
Tesla Sales Drop: Tesla sales in the U.S. fell by nearly 10% since the start of the year and through the end of the second quarter, according to Kelley Blue Book estimates. Tesla does not segment its deliveries geography-wise, leaving third-party data as the sole means of tracking their sales in the country.
As per the data, Tesla sold 304,451 units in the first half of the year as opposed to 336,892 vehicles in the corresponding period of last year.
While the sales drop was experienced across Tesla’s lineup, Model 3 sales took the largest hit. The company sold only 73,552 Model 3 sedans in the first half of this year as opposed to 112,791 units in the first half of 2023, likely due to the production ramp of the updated Model 3 at the company’s Fremont factory.
Tesla introduced the updated version of the Model 3 in the U.S. market in January.
Foreign Players Sell More EVs: But despite the American EV giant dropping in sales, foreign players have gained ground. Toyota sold 9,468 EVs in the period, marking a jump of 159% year-on-year. Toyota’s luxury brand Lexus, meanwhile, saw EV sales jump about 405% to 5,639 units, owing to the rise in popularity of its Lexus RZ electric SUV.
South Korea’s Hyundai too is rising in popularity in the region. While Hyundai saw its EV sales surge 34% to 29,105 units owing to the popularity of its Ioniq models, its sister brand Kia saw sales jump 104% to 27,634 units.
Hyundai’s luxury brand Genesis also marked a nearly 27% growth in sales to 3,241 units, with the popularity of its GV70 Performance SUV making up for the drop in sales of its other EVs including the G80.
Other Domestic Player Performance: Foreign brands are not alone in their EV sales growth. Michigan-based Ford Motor Co (NYSE:F) saw a 71.8% jump in EV sales in the first six months of 2024 to 44,180 units, while American EV startup Rivian Automotive (NASDAQ:RIVN) registered a 33% rise in sales to 27,378, according to Kelley Blue Book data.
General Motors‘ (NYSE:GM) Cadillac brand also saw sales rise by 465% to 13,094 units, owing to a rise in sales of its Lyriq SUV while Chevrolet EV sales dropped by nearly 41% to 19,918 units, likely due to the stop in production of its Bolt EV in December.
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