Tesla Retains Lead in Electric Vehicle Market as GM Gains Momentum

Tesla Continues to Dominate

In the third quarter of 2024, Tesla has maintained its position as the largest battery electric vehicle (BEV) manufacturer globally, slightly outpacing China’s BYD. The U.S. automaker reported sales of 462,890 units, totaling 1.29 million BEVs year-to-date. Although this marks a slight decline from the previous year’s figures, Tesla remains firmly at the top of the market.

GM Overtakes Ford in the U.S.

General Motors (GM) has successfully surpassed Ford to become the second-largest BEV brand in the United States. GM’s sales surged by 60% year-over-year, with 32,195 units sold in Q3, despite an overall 2.2% decline in total vehicle sales. The company’s strategy to focus on affordable electric models, including the newly launched Equinox EV priced around $35,000, is proving effective.

Impact of Affordability on Sales

The affordability of electric vehicles has become a key factor in driving sales. Tesla’s Model Y starts at approximately $37,500 after tax credits, while the Equinox EV can drop to as low as $27,495 with available incentives. Federal tax credits from the Inflation Reduction Act have further enhanced the appeal of these vehicles, contributing to significant savings for buyers.

Ford Adjusts Strategy Amid Rising Competition

Ford, now the third-largest BEV brand in the U.S., sold 23,509 units in Q3, reflecting a 12% increase from the previous year, though sales dipped 2% from the prior quarter. The automaker is shifting its focus towards smaller, more affordable electric models while planning to launch a new electric pickup in 2027, aiming to compete effectively with GM’s expanding lineup.