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.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
As anticipation builds for Tesla’s Robotaxi network debut in Austin, potentially just a few short weeks away, the National Highway Traffic Safety Administration (NHTSA) is turning its official eye onto Tesla. The ask? How will Tesla’s FSD handle the unpredictable realities of challenging weather?
The NHTSA Request
The NHTSA has sent a formal letter to Tesla, which was made public on May 12th, requesting detailed information about Tesla’s Robotaxi service. The NHTSA inquiry centers specifically on the safety and performance of FSD when faced with reduced visibility conditions like rain, fog, and sun glare. The request is tied to an ongoing NHTSA investigation, which was initiated in October 2023, examining Tesla’s FSD and Autopilot suite following incidents in poor visibility.
Tesla’s executives, including Elon Musk, have previously stated that the company is full steam ahead to launch Robotaxi in Austin this June. However, NHTSA’s pointed questions come even as Tesla has recently discussed its plans to work on region-specific and weather-specific FSD training.
Tesla’s executive leadership acknowledged the need to adapt the system to diverse environmental and weather conditions. Now, regulators want specifics on how Tesla intends to address environmental conditions and how that translates to operational safety for the fleet.
Request Breakdown
NHTSA’s letter outlines a need for detailed information from Tesla before the service launches and covers several key areas. We’ve broken this down into various sections below:
Deployment Scale
NHTSA is looking for the exact number of vehicles and models that will be part of the initial Austin fleet, and what the projected service availability times would be for said fleet. Tesla has previously said it’d launch with 10-20 Model Ys, but looks like NHTSA is looking for additional details.
Oversight
In terms of oversight, NHTSA is looking to confirm whether the Robotaxis will operate under real-time supervision of Tesla’s employees, either remotely or in-vehicle.
This is a question on our minds as well. A recent app update suggested that Tesla could have a driver in the vehicle, but it wasn’t clear whether this was referring to Tesla’s own fleet or customer-owned vehicles. The only thing we have heard officially from Tesla is that Tesla “may” use remote support, but that they were still looking into it.
Adverse Weather Capabilities
This is the meat and potatoes of the request - how will Tesla ensure safety during sun glare, fog, heavy rain, snow, or dust? What specific protocols are triggered if poor visibility is encountered mid-trip? Will the vehicle pull over or call home and cancel rides?
Sensor Technology
Surprisingly, NHTSA is looking for details regarding the vehicle the Robotaxi sensor suites and how Tesla intends to use those sensors to ensure safe operation under varied conditions. NHTSA has had previous submissions from Tesla in regard to its sensor suite and how it uses the technology, so it feels odd that they are requesting another batch - but this could be related to the use of the next generation of FSD (Unsupervised).
Compliance
Does Tesla’s FSD system adhere, either fully or partially, to established industry standards for autonomous driving? This likely refers to the NHTSA Automated Vehicles for Safety guidebook, which lays out the “L0 to L5” driver assistance vs automation system.
Future Expansion
Finally, NHTSA is looking for the timeline for enabling Robotaxi functionality on vehicles not directly owned or controlled by Tesla. Tesla has already come out and said that customer-owned vehicles wouldn’t be allowed on the robotaxi network until 2026, but obviously, NHTSA wants to hear directly from Tesla and likely has more specific questions covering a wide variety of potential issues.
These questions will likely have to be answered with considerable amounts of data and justification for the NHTSA. Once all that is done, Tesla will be in a better position to receive regulatory approval at a larger scale than just within the city of Austin or the state of Texa with the NHTSA’s backing.
Successfully addressing this letter will be the key for Unsupervised FSD moving forward, but Tesla hasn’t issued a public response to the agency’s letter, and likely won’t in a public manner. So we’ll have to wait and see how the launch of the Robotaxi network pans out next month.
After an 84-day wait since the last FSD update, Tesla has finally begun rolling out a new version of FSD V13 to its AI4-equipped vehicles. This new release, V13.2.9, is rolling out to all vehicles, including the Cybertruck.
Unfortunately, since it’s a minor point release (from V13.2.8), the release notes are the same, and Tesla hasn’t included a change log or changed what’s coming in the future.
Software Update 2025.14.6
The FSD update is rolling out with Tesla software update 2025.14.6. Interestingly, update 2025.14.6 is seeing a wider distribution and is also being made available to vehicles without FSD and outside North America. For those vehicles, this update just includes bug fixes.
TCU Fix
There’s one fix in particular that’s expected to be included in this update, according to a message from Tesla Service. In earlier 2025.14 updates, there was a bug in some vehicles that prevented some vehicles from falling asleep properly due to a Telematics Control Unit (TCU) issue. This bug caused additional battery drain since some of the vehicle’s systems remained on.
Tesla Service said they planned to include a bug fix in update 2025.14.6, but it hasn’t been confirmed whether the fix actually made it out in this release.
Early Access Users and More
FSD v13.2.9 was first rolled out to Tesla’s standard Early Access group, including well-known community members and content creators. It has also reached participants in the newer, Texas-based Early Access Program, suggesting that the update is relatively stable and may serve as a foundation for upcoming FSD releases.
Tesla could be intending to use the Texas Early Access Program to test various features, perhaps related to the upcoming Robotaxi network launch in Austin. While this is plausible, it is merely speculation, and we’ll be keeping a close eye on that group to see what exactly Tesla does.
HW3 Users
While Tesla has recently been including FSD updates for HW3 and HW4 in the same release, this update does not include any changes for HW3 users. HW3 vehicles that are receiving this update are staying on FSD V12.6.4, which means that whichever fixes this update includes they’re specific to FSD V13 or HW4.
Point Release - Not Much New
Being a point release, V13.2.9 isn’t expected to introduce any major new capabilities. Tesla hasn’t provided specific release notes detailing changes from V13.2.8.
Hopefully, Tesla has taken into account recent user feedback on V13.2.8 about lane centering and lane selection, and this update addresses some of those issues. However, early feedback is that those issues are still present.
There is always potential for a more substantial update in the near future, so keep your fingers crossed, but after such a long wait, we expected more to be included. It seems like Tesla may have felt the need to address a bug in this release instead of waiting for the next major release, which is expected to either be FSD V13.3 or FSD V14.
The fact that Software Update 2025.14.6 is going out wider than the Early Access audience suggests that Tesla is confident in this release and that it likely only includes very minor changes. We expect this update to continue going out over the coming days.