Ford and Tesla rivalry a new possibility, after impressive EV sales numbers

According to new EV sales numbers, Ford is now the second-best-selling electric car manufacturer in the U.S., indicating that it may be competitive with Tesla sooner than expected.

According to industry sales data, the automaker sold 102.6% more EVs in 2022, during which its leadership announced aggressive plans for increasing its electric lineup.

Policy changes enacted over the summer likely contributed to the automaker’s success. The Biden Administration’s Inflation Reduction Act attached new tax credits to EV products manufactured in the U.S., while removing benefits for models made overseas. This caused foreign EV sales numbers to slow in the latter half of 2022, as consumers prioritized domestic products to take advantage of the promised incentives. With less competition, Ford was able to grow its market share to 7.4%, up by roughly three points since last September. Meanwhile, Tesla, which once dominated 80% of the market, now holds 65%, and is projected to drop to 20% by 2025.

While EV sales numbers have improved for most U.S. automakers, overall market performance has remained stagnant. Despite Ford’s impressive performance, the automaker still failed to surpass last year’s sales. The initial post-pandemic boom seen by most automakers failed to survive in the face of sustained supply chain issues and high inflation rates, and the company was no exception.

Regardless, Ford seems to be aggressively pursuing an EV transition, although some argue the company’s goals are unattainably ambitious. In the coming years, the automaker will also see stiff competition from others hoping to take the crown for EV sales numbers, such as General Motors. It remains to be seen who comes out on top, but for now Ford is perfectly poised to be Tesla’s largest competitor heading into 2023.

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