Electric vehicle (EV) sales in the United States have hit another milestone, with over 300,000 units sold in Q3, marking a significant increase from the same period last year. This surge in sales brings the total number of EVs sold in the country for the year to just over 873,000, putting the market on track to surpass 1 million EVs sold for the first time ever by November.
According to Kelley Blue Book estimates, total EV sales in Q3 reached 313,086, representing a 49.8% increase from the previous year. Several automakers, including Volvo, Nissan, Mercedes, and Hyundai, recorded substantial gains of over 200%, largely due to the introduction of new models into the market. In fact, Q3 saw the arrival of 14 new EV models that were not available a year ago, including the Chevrolet Blazer and Silverado EVs. This influx of new offerings is transforming the EV market.
EVs accounted for a record-breaking 7.9% of total industry sales in Q3, up from 6.1% in the same period last year and 7.2% in Q2. Factors such as increased inventory levels, greater product availability, and downward pricing pressure have contributed to the sustained growth of EV sales in the U.S. market, which has now seen growth for 13 consecutive quarters.
In Q3, EV transaction prices experienced a significant decline compared to 2022. Tesla, in particular, slashed prices by approximately 25% year over year to boost sales volume. This move paid off, as Tesla’s Q3 sales grew by 19.5% year over year, surpassing the industry’s overall growth rate of 16.3%. However, Tesla’s share of the EV segment continues to decline, reaching a record low of 50% in Q3, down from 62% in Q1. The upcoming release of the long-awaited Cybertruck may reverse this downward trend, but competition from Ford, Rivian, and Chevrolet is expected to impact Tesla’s electric pickup volume potential.
Notably, the German luxury brands – Audi, BMW, and Mercedes – have experienced rapid growth in EV sales. In Q3, BMW and Mercedes saw their EV sales more than triple compared to the same period last year, while Audi enjoyed a 94% increase in EV sales.
Among automakers offering both internal combustion engine (ICE) and EV products, Audi, BMW, and Volvo had the highest proportion of EV sales in Q3. BMW led the way with over 15% of its sales being EVs, followed by Audi and Volvo with over 12% each, according to Kelley Blue Book estimates. Mercedes, Porsche, and VW also had an EV mix of over 10% in the last quarter.
Despite increasing competition, Tesla remains the dominant player in the EV market, with Ford trailing far behind in second place with just over 20,000 EVs sold in Q3.
Industry analysts anticipate a surge in new EV models over the next three years, with the number of available EV products expected to double by 2027. With growing product availability and consumer acceptance, EV sales volume in the U.S. is predicted to continue its upward trajectory. As the market dynamics evolve, it will be interesting to see how the industry adapts to these changes.