Tesla's Share of the U.S. EV Market Slips 7% but Remains No. 1

The Model Y and Model 3 remain the two best-selling electric vehicles in the U.S., even though Tesla did not launch a new model in 2022. Tesla still holds four of the top six spots in the list of best-selling electric vehicles in 2022.

However, Tesla's share of the U.S. electric vehicle market fell from 72 percent in 2021 to about 65 percent in 2022; the biggest difference was a market share of 58 percent in the fourth quarter of 2022, down from nearly 78 percent in the same quarter of 2021. However, Tesla remains the world's largest maker of electric cars as of January 2023. Other traditional automakers are developing new electric models to narrow Tesla's lead but have yet to catch up.

In 2022, Tesla sold about 522,000 electric vehicles in the United States, while Ford sold 61,575, and General Motors came in third with sales of more than 39,000. Overall, 11 car brands sold more than 10,000 EVs in 2022 (up from seven in 2021), including BMW, Ford, and Nissan.

It is worth noting that in 2022, Ford became the No. 2 electric carmaker in the United States, followed by Hyundai Motor and its affiliate Kia Motors. Meanwhile, General Motors, Volkswagen, and Nissan Motor Co. also lost market share in electric vehicles in the U.S. last year.

Of course, no one really believes that Tesla will capture more than 70% of any global car market for a number of consecutive years. Analysts say Tesla's share of electric vehicle sales in China could reach about 12% in 2022, and its final market share of pure electric vehicle sales in Europe should fall between 15-20%.

Moreover, according to a report published by Stefan Bratzel, director of the Center for Automotive Management, a German automotive research institute, Tesla still tops the list of pure electric vehicles sold by global automakers, followed by BYD, SAIC, and other brands affiliated with Volkswagen.