Electric vehicle sales accounted for 7.2% of all first-quarter car purchases, the segment’s best U.S. performance to date.
According to a Cox Automotive report, Q1 EV sales hit 258,882 units, a year-over-year growth of 44.9%. After such a boost, Cox analysts are confident the segment will hit 1 million units by the end of the year.
Behind the growth are the industry’s steadily improving production arm and growing model lineup. Cox Automotive notes that first-quarter inventory exploded by 70% compared to Q1 2022. Last April, only 34 battery-powered cars were available for purchase in the U.S. As of today’s writing, consumers can choose between 42 vehicles, with more arriving in the coming months. As time goes on, and manufacturing and selection begin to compete with the market’s gas-powered counterpart, these factors will likely drive even more growth.
Out of all legacy and electric-focused automakers, Tesla continued to be the EV segment’s dominant player, selling 24.6% more units than it did in Q1 2022. However, at 62.4%, the company’s market share remains far below its former strength and is expected to fall even more as other companies introduce a wider selection of offerings. Although Ford took the second-place spot last year for overall EV sales, Cox Automotive notes that Chevrolet moved ahead in the first quarter thanks to the Bolt SUV and compact car models, leaving the blue-oval brand in third.
Despite its surprising tenacity, the electric segment remains a niche market for the U.S. However, EV sales are coming close to hitting one of two extremes; the ceiling set by limited consumer interest or the “tipping point” where better selection and charging infrastructure give customers enough space to overcome their hesitation. Dealers and manufacturers are anxiously monitoring public reports to see which way the needle moves.
