Forget California, Tesla Goes National: Electric Domination Spreads Across 7 States In One Year

The U.S. car market saw a fascinating shift in 2023. While Ford Motor Co. F solidified its lead, Tesla Inc.‘s TSLA surge in each state was the most eye-catching, suggesting a growing appetite for electric vehicles despite an overall slowdown in demand.  

Traditional Trucks Remain Strong, But Tesla Is Charging Up

Pick-up trucks continued to hold sway, notably with Ford’s F-Series leading sales in 22 states, up from 14 in 2022, according to data from Edmunds. This underscores their enduring popularity for work and utility, particularly in states like Texas and Oklahoma. Notably, these gains were mostly at the expense of General Motors Co.'s GM Chevrolet Silverado, which lost its top spot in six states.

Tesla’s rise, however, could not be ignored. The electric car manufacturer secured the top spot in seven states and Washington D.C., clocking a remarkable 700% increase from its single-state dominance in 2022 (California).

Tesla’s Model Y outsold gas-powered rivals like the Ford F-Series in environmentally conscious states such as Washington and Oregon. Furthermore, Tesla disrupted the dominance of Toyota Motor Co’s TM RAV4 in Maryland and Virginia, indicating a growing preference for electric SUVs.

While maintaining its lead in California and Nevada, Tesla expanded its market share to include states like Colorado and New York, signaling a burgeoning national appetite for Tesla vehicles, particularly in densely populated areas.

However, Ford encountered challenges, losing ground to Tesla in key markets like Virginia and Maryland, possibly reflecting a shift towards eco-friendly options.

Regional Preferences

Regional variations were evident, with the Ford F-Series maintaining dominance in the agricultural and industrial Midwest and South. 

Similarly, pickup trucks like the F-Series and Silverado remained popular choices in states with a strong outdoor culture such as Montana and Alaska, valued for their towing capacity and durability.

The Big Losers

The models that were knocked out of the bestseller list from last year were Stellantis' RAM trucks and Toyota Corolla — which was also incidentally dislodged by Tesla's Model Y as the world's best-selling car in 2023.

Toyota's RAV4, which Tesla CEO Elon Musk said people wouldn't buy if his company's cars were that cheap, also lost its place as a bestseller in seven states — mainly to the Model Y.

What’s Aiding The Shift?

Electric car prices are rapidly approaching parity with gas-powered vehicles, with the gap shrinking from $17,000 to $5,000 in just two years, according to Cox Automotive data. 

Tesla’s aggressive pricing strategy is a major factor, as the company has significantly reduced prices for models like the Model Y SUV and Model 3 sedan. 

Dealerships are also offering discounts to move inventory, reflecting slower-than-expected consumer adoption of electric vehicles. This trend is promising for potential EV buyers, as lower prices make electric cars more accessible.

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