US EV Car Sales Hit New Record, And People Are Buying More Than Just Teslas
Electric vehicles made up 7.1% of car sales in January 2023, a jump from 4.3% during the same time period last year, InsideEVs reports(Opens in a new window). Total car sales, gas and electric, remained on-par with the past two years, meaning EVs are a standout growth area in the automotive industry.
Out of the 87,708 battery-powered registrations, 57% were Teslas and 43% were from non-Tesla brands, such as Chevrolet, Ford, and Volkswagen. While Tesla remains dominant, its market share has taken a noticeable dive from 74% just one year ago.
Another big trend is the impact of federal tax credits. To qualify for the $7,500 credit, vehicles must be made in America and have a portion of their battery materials domestically sourced. There are also price caps on qualifying vehicles, and income caps on customers, to prevent federal funds from going to wealthy customers buying luxury vehicles.
The top two most popular vehicles in January were the Tesla Model Y, with 28,833 new registrations, and the Tesla Model 3, at 17,526. Both sold more units than in January 2022, thanks to some steep price cuts in mid-January 2023.
The price of a Model Y dropped $13,000, from $65,990 to $52,990, while the Model 3 got a $3,000 reduction. This particularly affected sales on the Model Y, which jumped 56% year over year, as the vehicle now falls below the $55,000 federal limit for sedans to qualify for the federal tax credit. (Tesla has since raised the price back up slightly to $54,990 as of this writing.)
Tesla also gained ground in January in the luxury segment, growing 34% and surpassing competitors like BMW, Experian reports(Opens in a new window).
The Chevrolet Bolt EUV was the third most popular vehicle, with 4,928 registrations. That's
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