Cox Automotive released data on EV sales in the US in the second quarter of the year. Overall, EV sales rose 8.3% to 330,000, or 8% of the total cars and light trucks sold for the period. Several car companies, including GM (NYSE: GM) and Ford (NYSE: F), picked up market share. Ford’s stock has been hammered recently.
Tesla’s (NASDAQ: TSLA) market share fell below 50% for the first time. It was 49.7%, down from 59.3% in the same quarter last year. This allowed other companies to increase their percentages of the overall market. Cox said the winners exceeded GM and Ford, including Hyundai and Kia, the two largest South Korean manufacturers.
GM and Ford have put billions of dollars into EV R&D and production. Each only sells a few thousand EVs a month, but those numbers have risen by double digits. Even if the EV market stays relatively flat, more erosion in Tesla’s numbers means benefits for the two largest US car companies.
Ford and GM still have to operate in a market where Americans have lowered their interest in EV purchases. The reasons include expensive EVs, fear of range, and a low number of charging stations. The two US car companies say they produce EVs with price points below $25,000, but their availability maybe two or more years away.
The EV market in the US could also change as Chinese EV companies try to import cars priced below $25,000. Tariffs of as much as 100% have blocked that. These Chinese companies have decided to move their efforts to India, Southeast Asia, South America, and Africa. There is a question of whether consumer demand for these cars will eventually affect the US tariffs.
Ford and GM have started to get some yield from years of EV development and extraordinarily high investments.
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
The post GM And Ford Post Strong EV Sales appeared first on 24/7 Wall St..