Tesla maintaining lead over legacy automakers in EV market
Electric vehicles (EVs) have been a highly watched market, with legacy automakers promising to increase their production and sales of EVs. However, despite notable upticks in sales compared with a year ago, Tesla remains the top EV seller and has grown its lead over legacy automakers like Hyundai Motor and General Motors. According to data from Motor Intelligence, Tesla sold an estimated 336,892 vehicles to retail and fleet buyers in the US during the first half of the year, a 30% increase from a year earlier. But why are legacy automakers failing to catch up?
Hyundai, including the Kia brand that’s owned by the same parent company, overtook General Motors in US sales of EVs but remains a distant second compared to Tesla. The South Korean automaker sold 38,457 electric vehicles in the US during the first half of 2022, an increase of around 11% compared to a year earlier. Meanwhile, GM more than quadrupled electric car and truck sales to 36,322 units through June compared to a year ago. Volkswagen more than doubled EV sales to 26,538 units sold through June.
In spite of remarkable progress, legacy automakers have failed to bridge the significant gap between themselves and Tesla. Part of the problem lies in the design and production of their electric cars. While legacy automakers have been building traditional cars for decades, EVs require new designs, materials, and technologies. The shift to EVs may simply be too difficult and expensive for automakers that have been slow to evolve. The technological advancements Tesla has made and continues to make may prove too much for legacy automakers.
Another key to Tesla’s success is the proprietary technology they’ve developed, from self-driving software to battery production. Unlike their competitors, Tesla doesn’t rely on third-party suppliers for critical components, which allows them to have full control over their supply chain. This helps Tesla minimize production delays and reduces the risk of vehicle recalls.
Tesla continues to lead the highly watched EV market, with legacy automakers struggling to catch up. While some like Hyundai and GM have shown significant progress in EV sales, they still remain far behind Tesla. Tesla’s proprietary technology and focus on innovation has been instrumental in their success, while legacy automakers struggle to adapt to the shift to EVs. It remains to be seen if legacy automakers can make significant strides in the EV market or if Tesla will continue to maintain its lead.