The US auto market has seen a fascinating change in 2023. While Ford Motor Co. F consolidated its advantage, Tesla Inc.‘S TSLA The increase in each state was the most noticeable, suggesting a growing appetite for electric vehicles despite an overall slowdown in demand.
Traditional trucks remain strong, but Tesla is charging
Pickup trucks continued to dominate, notably with Ford’s F Series leading sales in 22 states, up from 14 in 2022, according to Edmunds data. This highlights their enduring popularity for jobs and public services, particularly in states like Texas and Oklahoma. Notably, these gains have mostly been at the expense of General Motors Co.’S GM Chevrolet Silverado, which lost first place in six states.
The rise of Tesla, however, could not be ignored. The electric car maker secured the top spot in seven states and Washington DC, recording a remarkable 700% increase from its dominance in a single state in 2022 (California).
Tesla’s Model Y has outsold gas-powered rivals like the Ford F-Series in environmentally conscious states like Washington and Oregon. Additionally, Tesla has discontinued the dominance of Toyota Motor Co TM RAV4 in Maryland and Virginia, indicating a growing preference for electric SUVs.
While maintaining its lead in California and Nevada, Tesla has expanded its market share to include states like Colorado and New York, signaling a growing national appetite for Tesla vehicles, particularly in densely populated areas.
However, Ford has faced challenges, losing ground to Tesla in key markets like Virginia and Maryland, perhaps reflecting a shift toward eco-friendly options.
Regional preferences
Regional variations were evident, with the Ford F Series maintaining dominance in the agricultural and industrial Midwest and South.
Likewise, pickup trucks like the F Series and Silverado have remained popular choices in states with a strong outdoor culture like Montana and Alaska, prized for their towing capacity and durability.
The big losers
Models that were dropped from last year’s bestseller list were Stellar‘ RAM Trucks and Toyota Corolla, also incidentally displaced by Tesla’s Model Y as the world’s best-selling car in 2023.
RAV4 from Toyota, CEO of Tesla Elon Musk said people wouldn’t buy if his company’s cars were so cheap, it also lost its place as a bestseller in seven states, mostly to the Model Y.
What is helping the change?
According to data from Cox Automotive, electric car prices are rapidly approaching parity with gas-powered vehicles, with the gap narrowing from $17,000 to $5,000 in just two years.
Tesla’s aggressive pricing strategy is a major factor, as the company has significantly reduced prices for models like the Model Y SUV and Model 3 sedan.
Dealers are also offering discounts for moving inventory, reflecting slower-than-expected consumer adoption of electric vehicles. This trend is promising for potential EV buyers, as lower prices make electric cars more accessible.
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