The electric vehicle market in the United States hit a new milestone in 2023, with a record-breaking sale of approximately 1.2 million units, the vast majority of them Teslas. The latest report contradicts previous claims that the demand for EVs is diminishing. Clearly, there is a growing shift towards electrification in the automotive industry, highlighting consumer enthusiasm for more sustainable transportation options.
A Surge in EV Popularity
According to Kelley Blue Book, in 2023, the total number of new electric vehicles put into service was 1,189,051, a significant increase from previous years. This rise in EV adoption contributed to EVs capturing 7.6% of the total U.S. vehicle market, up from 5.9% in 2022. The fourth quarter of 2023 was particularly notable, with EV sales setting records in volume (317,168 units) and market share (8.1%). Despite these impressive figures, the pace of growth has shown signs of slowing, with a year-over-year increase of 40% in Q4, compared to higher growth rates in earlier quarters.
Tesla: Leading the Charge
Tesla remains a dominant force in the U.S. EV market, accounting for 55% of all EV sales in 2023. While this decreased from 65% in 2022, Tesla's aggressive pricing strategy has helped maintain its market leadership. The Tesla Model Y alone represented 33% of all EVs sold in 2023, and Tesla's overall share of the U.S. market reached a new high of 4.20%. The Model Y and Model 3 are the reigning Cost to Own Award winners, according to Kelley Blue Book as well.
Rk
Vehicle
Units Sold in 2023
1.
Tesla Model Y
394,497
2.
Tesla Model 3
220,910
3.
Chevrolet Bolt EV/EUV
62,045
4.
Ford Mustang Mach-E
40,771
5.
Volkswagen ID.4
37,789
6.
Hyundai Ioniq 5
33,918
7.
Rivian R1S
24,783
8.
Ford F-150 Lightning
24,165
9.
Tesla Model X
23,015
10.
BMW i4
22,583
The Tesla Model Y led the pack in 2023, with 394,497 units sold, followed by the Tesla Model 3 at 220,910. Other top sellers included the Chevrolet Bolt EV/EUV, Ford Mustang Mach-E, Volkswagen ID.4, Hyundai Ioniq 5, Rivian R1S, Ford F-150 Lightning, Tesla Model X, and the BMW i4.
Competition is Starting to Heat Up
While Tesla remains at the forefront, other automakers are at least on the playing field. German luxury brands like BMW, Audi, and Mercedes-Benz have seen an increase in their EV sales, with EVs making up 12.5%, 11%, and 11.5% of their total brand sales in 2023. This growth indicates a shifting trend among luxury car buyers towards electric models.
Non-luxury brands are also making significant strides in the EV market. Volkswagen, for example, reported that EVs accounted for 11.5% of its total sales in 2023. This diversification among manufacturers suggests a broadening appeal of EVs across different market segments.
One of the hurdles in EV adoption has been the cost. In December 2023, the average price for a new EV was $50,789. However, changes in tax incentives and shifts in the market are anticipated to bring EV prices closer to those of internal combustion engine vehicles. The Chevy Bolt and Nissan Leaf were among the few EVs with a manufacturer’s suggested retail price below $40,000 in December.
2024: The Year of More for EVs
The Cox Automotive Economic and Industry Insights team has dubbed 2024 "the Year of More" for EVs. Expectations include increased new product offerings, incentives, inventory, leasing options, and infrastructure development. These factors are predicted to push EV sales even higher, potentially reaching a 10% market share in the U.S. by the end of 2024.
The EV market is set to become more competitive and diverse, with Kelley Blue Book estimating over 70 different EV models to be available within the next two years. This expansion in choice is likely to fuel further growth in EV sales as consumers have a wider range of options to suit their preferences and budgets.
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Tesla has issued a new, voluntary safety recall for a small batch of Model 3 and Model Y vehicles due to an issue with improperly tightened fasteners in the first-row seats.
The recall impacts only about 48 vehicles and will require a Tesla service visit to resolve.
Improperly Tightened Fasteners
According to the recall notice, the issue stems from the first-row seating that may have been manufactured with improperly torqued fasteners that attach the seat back to the seat bottom. In some cases, the fasteners may be loose or missing, which could cause a rattle or the seat to detach.
This is a critical safety issue, as a seat back that is not properly anchored could detach, leaving the driver or passenger unsupported and increasing the risk of an accident.
According to Tesla’s investigation, this issue originated from a production change made for vehicles manufactured between April 3rd and May 7th of 2025. However, not all vehicles built within that date are impacted by the recall. The issue impacts 30 2026 Model Ys and 18 2025 Model 3s, across all variants, including RWD, AWD, and Performance (for the Model 3).
Thankfully, there have been no incidents related to this issue to date.
The Fix
Since this is a physical recall, Tesla will have to inspect impacted vehicles and replace and properly retorque the seat fasteners as needed, free of charge.
Owners of vehicles who have been impacted have already been contacted under the voluntary recall, and most vehicles should have been repaired by the time this notice is formally issued.
You can also check if your VIN is impacted by a recall using Tesla’s Recall Tool.
Tesla has noted the repair should take approximately one hour of work at a Service Center, and up to two hours if a Mobile Ranger addresses the recall.
Following the successful launch of Robotaxi on Sunday, June 22nd, Tesla has begun moving to the next phase of its Robotaxi rollout. They have finally begun sending out a second, larger wave of invites, expanding the early access program to more members of the Tesla community across the United States.
This has moved them past the initial 20 or so users that were offered access on Sunday. That also means Tesla is on the hunt for something crucial: more real-world data.
More Riders ASAP
The initial launch was a tightly controlled event, with access granted to a small and curated group of influencers. While this approach was ideal for generating initial buzz for the launch and collecting feedback from high-quality testers, it also presented logistical challenges.
With only a handful of authorized riders and vehicles, the demand for rides would inevitably dry up as influencers begin their journeys back home. Without a public release, that would leave Tesla’s Robotaxi fleet idle, unable to gather additional data.
To rapidly improve on Robotaxi’s FSD, Tesla needs its vehicles to be constantly navigating real-world scenarios, encountering edge cases, and logging miles. The second round of invites is needed to keep Robotaxis learning and on the road.
Austin Users Next?
This new wave of invites isn’t an open door for members of the public quite yet. By continuing to send invites to trusted community members, Tesla is executing a slow and deliberate rollout by inviting members who know and love Tesla. This allows them to scale the program gradually, increasing the number of users and the diversity of ride requests without overwhelming the relatively small initial fleet of about 10 cars.
Future phases will likely involve opening access to Tesla owners within Austin, which would open up a regular flow of rides. Once that’s done, Robotaxi will likely open up to the public.
Sign of Confidence
The expansion of the early access program is a sign that Tesla is happy and confident with the rollout so far. While Tesla can gather plenty of data around Austin from Tesla owners using FSD, they also need to continue testing features that are exclusive to the Robotaxi, such as the Robotaxi app, support, and remotely control the vehicles when needed.
We expect a full launch to potentially still be months out, but this methodical expansion will likely see more users gradually gain access to the Robotaxi network in the coming weeks.