U.S. vehicle registration data showed that the number of electric vehicles registered in the United States doubled last year, and Tesla still firmly dominates the market in the U.S. electric vehicle industry.
Today, the market may be saturated as startups and traditional automakers jump into the EV space, but Tesla’s industry dominance remains solid. While General Motors pioneered the EV1, the first modern electric vehicle, Tesla started the industry boom with the Roadster electric sports car and Model S electric sedan.
Since then, EVs have grown their share of the U.S. auto market. The number of electric vehicles registered in the U.S. doubled last year, accounting for about 5 percent of all new registrations.
Market research firms predict that it will take years for more U.S. consumers to switch from gas-powered vehicles to electric vehicles. According to the monthly vehicle registration data from S&P Global Mobile, the use of electric vehicles is obviously increasing, and the use of electric vehicles in California, Florida, Texas, and some cities in the northeastern United States is more obvious.
According to vehicle registration data, Tesla’s dominance in electric vehicles is solid. Tesla made about 61 percent of all electric vehicles registered in the U.S. in April.
The closest competitor to Tesla is Ford with 8% market share, Hyundai with 6%, and Kia Motors with 6%. While traditional automakers make popular electric vehicles like the Ford Mustang Mach-E and F-150 Lightning, they are nowhere near Tesla’s market share due to limited production.
In April of this year, Tesla Model Y received 14,152 orders, compared with 3,287 orders for Ford Mustang Mach-E, which accounted for only a quarter of Tesla’s total Model T orders for the month.
For now, Tesla also faces some risks. That’s because Tesla is fending off the entire wave of competition with just two electric vehicles, the Model 3 and Model Y. Other models such as the Model S and Model X have yet to ramp up production capacity since their early 2021 refresh, and projects such as the Cybertruck, Semi electric truck, and Roadster sports car have been repeatedly delayed.
Still, S&P Global Mobility analyst Tom Libby believes Tesla “has an extraordinary and unique brand aura.” Beyond that, Libby noted, competition from rival EV makers is just “not a prairie fire.”
Hummer EV supply is limited, and the Volkswagen ID.4, which is seen as a potential competitor to the Model Y, has also performed mediocrely in the US market, and the Volkswagen ID. Buzz has not yet landed in the US market. Competing models from startups such as Rivian, on the other hand, have stalled due to chip shortages and supply chain issues.
Considering the momentum of the U.S. electric vehicle industry, the consulting firm expects the U.S. electric vehicle market share to reach 28% in 2028 and 59% by 2035.