Tesla rivals are fighting for a small part of the electric car market in the US.

The decision of Ford Motor Halting construction of a $3.5 billion battery plant in Michigan highlights the challenge Tesla poses to the growing number of its rivals in the U.S. market: The leading company is pushing most of them into unprofitable niches. and low volume.

Automakers around the world are launching dozens of new electric vehicles in the United States and investing billions of dollars in electric vehicle and battery plants.

But few of them, other than Tesla’s Model Y and Model 3, sell in volumes large enough to support a large-scale assembly plant, according to a Reuters analysis of U.S. electric vehicle sales data. during the first six months of 2023.

Brand for brand, Tesla outsold its next 19 competitors by 10 to one or more during the first half, according to data from S&P Global Mobility.

Tesla sold 325,291 vehicles in the United States from January to June. General Motors’ Chevrolet brand, with its Bolt EV, came in a distant second with 34,943 units, followed by Ford, Hyundai and Rivian.

By brand, the four Tesla models were among the top 12, with the Model Y and Model 3 in first and second position, with sales in the first half of 200,000 and 160,000 units, respectively.

By comparison, the Bolt sold 35,000 units and Ford’s Mustang Mach E 13,600—not nearly enough volume for a typical assembly plant, which needs to run at 80% capacity or more to be profitable.

Sales of electric vehicles, including plug-in hybrids and fuel cell vehicles, accounted for the 8.9% of the US market during the first half of 2023, 2.6 percentage points more than a year ago, according to data compiled by the Alliance for Automotive Innovation, an industry trade group.

But that market share was divided among 103 different models, according to the alliance’s latest quarterly report on the electric vehicle market.

Ford’s decision on the Michigan plant comes as some analysts question whether the U.S. electric vehicle market will grow fast enough to support all the new battery and assembly operations launched or under construction.

In July, Ford forecast a full-year loss of $4.5 billion from its electric vehicle unit, up 50% from what it forecast at the beginning of the year, and said it was slowing its pace of electric vehicle production.

The American automaker, like several of its rivals, has committed billions to build new electric vehicle and battery plants in the United States.

In a media presentation on Tuesday, Cox Automotive noted that Tesla has given up some of its electric vehicle sales in the United States this year as more competitors come to market, but still controls nearly two-thirds of all vehicle sales. electrical. No other brand surpasses the 10%.

Cox estimates that EV sales will increase by 8% of the total in the United States in the third quarter, compared to 6.5% from a year ago.

Some of that growth is likely due to falling prices, a trend fueled by Tesla, which is using its superior profit margins to lower prices and increase sales. Cox said average EV retail prices fell to $53,376 in July 2023, from a high of nearly $53,376. 70,000 a year ago.

Source: Reuters