Not even Joe Biden has had as many naysayers in recent months as have electric vehicles. New reports suggest that the handwringing earlier in the year regarding plummeting electric vehicle sales all but killing off the segment could well have been a premature burial.
Kelley Blue Book reports that 330,463 EVs were sold in the U.S. during the second quarter of the year, which is an 11.3% boost over the same period in 2023, and is 23% better than during the first quarter. They comprised 8% of all new-vehicle sales on the quarter, which surpasses the previous record of 7.2% set a year earlier.
And this flies in the face of Tesla sales, once the bellwether measure measurement of the segment’s health, slipping by 6.3% in the second quarter, year over year. KBB data shows Tesla now accounting for 49.7% of all EV sales in the U.S., which is down from a full 75% in 2022.
“EV sales exceeded expectations during a record-breaking quarter. Increased competition is leading to continued price pressure, gradually boosting EV adoption,” according to Cox Automotive’s Industry Insights Director Stephanie Valdez Streaty. “Automakers that deliver the right product at the right price and offer an excellent consumer experience will lead the way in EV adoption.”
Though its sales are in an overall slump, Tesla’s Model Y electric crossover SUV continues to be king of the hill among EVs, with more than 101,000 units delivered to customers during the second quarter. The next highest-volume EV is Tesla’s Model 3 sedan, at less than 43,000 units. The third highest-selling model, according to KBB, is the Ford Mustang Mach-E, with 12,645 models sold during the second quarter. General Motors came in second to Tesla, with 12,645 EV transactions, overall.
Added competition, some rather dramatic price cuts and the one-time federal credit of up to $7,500 on certain models have obviously helped boost sales in the segment, despite an EV’s inherent limitations, especially with regard to operating range and public charging.
What’s more, automakers’ cash rebates, which had all but dried up during the pandemic-fueled supply chain shortages, are now. Flourishing. We’ve seen EV cash rebates as rich as $7,500-$10,000 and/or financing offers as low as zero percent being slapped on the hoods of several models to help spur sales. Leasing deals are equally generous these days, with many automakers whose EVs would not otherwise qualify for the aforementioned federal credit, able to offer the $7,500 incentive via their leasing programs.
