Despite shrinking BEV inventory due to supply chain constraints and legacy automakers still playing catch-up in BEV production, demand for electric vehicles continues to grow… and Tesla it is no longer the only pony in the race. That being said, Tesla remains the leader in electric car sales, but the rest of the market is starting to catch up.
Morgan Stanley released its U.S. auto sales report for July today, with sales data showing that inflation continues to weigh on consumer demand, particularly among lower-income households.
The lack of affordable BEVs has also resulted in consistently high prices for automakers selling BEVs directly to consumers, as well as dealership models charging exorbitant markups to capitalize on this demand, pushing back threats from OEM bosses.
Despite pricing and demand issues, BEV sales were up 59.8% year-over-year in an overall car market that was down 8.2% year-over-year. According to the report, BEVs now account for 6.1% of the total market, another big jump year-over-year from the 3.5% market share in July 2021.
Part of the reason for this market growth is the increase in the number of electric car models going on sale, especially from legacy automakers not named Tesla. For example, Ford Motor Company delivered 7,669 BEVs in July, selling just three models: Mustang Mach-EE-Transit and F-150 Lightning. For those three EVs alone, Ford leads legacy OEM shipments this month.
The elements of math tell us that as one group’s figurative slice of the EV market pie grows, the other must shrink, which is the latest case for Tesla. However, the EV leader there’s still a lot of dessert on the plate.
Tesla accounted for 60.9% of the US BEV market, down 7.5% (68.4%) from last year. Although its saturation has eased a bit, its July sales provide more evidence that Tesla is still the electric car favorite in the US. The estimated 42,813 sales are about 1.6 times more than the rest of the BEV industry combined (27,543 US sales).
Tesla is still the clear leader, at least for now. One last little nugget of data that’s important to note Morgan Stanley’s July report – sales growth. While nominal Tesla sales are estimated to be up nearly 37% year-over-year, non-Tesla BEV sales have nearly doubled, up 90.6% year-over-year.
It’s obviously one brand that’s fighting a pack of other American automakers, but these specific numbers show that Tesla is no longer the only viable electric car option on the market. This is noteworthy because of what it means for the rapid adoption of electric vehicles, and because of the number of cool electric vehicles that are available and will soon be available to consumers in the US.
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