US EV Sales Hit New Record, And People Are Buying More Than Just Teslas

Although gas-powered cars still dominate, EVs are gaining in popularity in the US, thanks in part to federal tax credits and more affordable vehicles.

Emily Dreibelbis
By Emily Dreibelbis
Updated March 20, 2023

Electric vehicles made up 7.1% of car sales in January 2023, a jump from 4.3% during the same time period last year, InsideEVs reports(Opens in a new window). Total car sales, gas and electric, remained on-par with the past two years, meaning EVs are a standout growth area in the automotive industry.

Out of the 87,708 battery-powered registrations, 57% were Teslas and 43% were from non-Tesla brands, such as Chevrolet, Ford, and Volkswagen. While Tesla remains dominant, its market share has taken a noticeable dive from 74% just one year ago.

Another big trend is the impact of federal tax credits. To qualify for the $7,500 credit, vehicles must be made in America and have a portion of their battery materials domestically sourced. There are also price caps on qualifying vehicles, and income caps on customers, to prevent federal funds from going to wealthy customers buying luxury vehicles.

The top two most popular vehicles in January were the Tesla Model Y, with 28,833 new registrations, and the Tesla Model 3, at 17,526. Both sold more units than in January 2022, thanks to some steep price cuts in mid-January 2023.

Tesla model Y
Tesla Model Y, the most-sold EV in January 2023. (Credit: Tesla)
The price of a Model Y dropped $13,000, from $65,990 to $52,990, while the Model 3 got a $3,000 reduction. This particularly affected sales on the Model Y, which jumped 56% year over year, as the vehicle now falls below the $55,000 federal limit for sedans to qualify for the federal tax credit. (Tesla has since raised the price back up slightly to $54,990 as of this writing.)

Tesla also gained ground in January in the luxury segment, growing 34% and surpassing competitors like BMW, Experian reports(Opens in a new window).

Chevy BOlt EUV
2022 Chevy Bolt EUV, the third most-sold EV in January 2023. (Credit: Chevrolet)
The Chevrolet Bolt EUV was the third most popular vehicle, with 4,928 registrations. That's no surprise, as the Bolt EUV is among the most affordable EVs available, at $28,000 compared to $43,000 for a Tesla Model 3, with comparable range.

Next up: the Volkswagen ID.4, with 4,049 total units sold. For the 2023 model year, Volkswagen moved production of the ID.4 to its Chattanooga, Tennessee, plant in order to qualify for the federal tax credit.

Volkswagen ID.4
Volkswagen ID.4, the fourth most-sold EV in Jan. 2023. (Credit: Volkswagen)
After Volkswagen, Ford claimed the fifth and sixth spots with the Mustang Mach-E (3,286 units sold) and the F-150 Lightning pickup truck (2,918). Both qualify for the federal tax credit, though not the priciest trims of the F-150, which are above the $80,000 limit for trucks.

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Kia and Hyundai, makers of the popular EV6 and Ioniq 5, respectively, notably did not make the list of top sellers. Both automakers manufacture their vehicles exclusively abroad, automatically disqualifying them for the federal tax credit.

Mustang Mach-E
Ford Mustang Mach-E, the fifth most-sold EV in Jan. 2023. (Credit: Ford)
For all of 2022, electric cars made up 5.8% of all new car sales in the US and 10% globally, according(Opens in a new window) to the Wall Street Journal, up significantly from 2021.

We've yet to find the ceiling on adoption, though several states have targeted completely phasing out gas-powered car sales by 2035. Achieving this will likely require more charging infrastructure and improved range (especially in cold weather), which state and local governments, automakers, and charging companies are working to solve.


https://www.pcmag.com/news/us-ev-car-sales-hit-new-record-and-people-are-buying-more-than-just-teslas

135% of the price drop in gas is because of electric vehicles.

Brew I’ve never said “what is better” I just take offense to the lack of complete context in the conversation at large. At this point no it’s not an answer it’s a sliver of a bandaid.

Who said that EV’s were a panacea?
They are a piece of the puzzle.

Some here see that they reduce pollution - on a large scale.
Others argue that they don’t do enough.
And of course, some say there is no reason to do anything.

Just like any other clean, high efficiency thing they help to curb pollution by using energy better. Like new HVAC units, LED bulb, etc.

The fact they they are just plain better cars is for me the driving force (see what I did there?).
The green end of them is just a bonus.

But nations the world over have look at this at length and are moving to EV’s.
No foolin’.

They’re not green though.

^ Frank I can listen to, when there’s slave labor involved to build something he has family history I don’t think you have Brew. No offense I still ❤️ you.

That is all true but the difference is we are here now, 7 billion and counting, and the earth's temps are changing much more rapidly now than it ever has in the past. I believe most people know it really is not a good idea to pump billions of tons of CO2 and methane into our atmosphere each year even if they don't want to change their lifestyle.

this is so rational.

we're always cool.

You rang?

making a profit is not a bad thing.

Soon PETA will be the only thing holding back the government from mandating that you butcher your stock and use them to feed insects for consumption. We must do everyting we can to feed the continuiously growing world population. Individual homes and means of travel consume too many reasources so they too will be replaced by collective solutions.

Yes! Getting rid of slavery was genius, it eliminated the expense of feeding, clothing, and sheltering "workers".

Government has an established track record of knowing what is best.

Someone did NOT do their home work…

I wasn't talking about their production of EV's, I was talking about their propensity to pollute the environment. They do a whole lot of it.

I haven't responded to you much lately, and if I have I wasn't being an ass. In fact, I've made it a point to ignore you for the most part. If you feel the need to respond to me, and I really hope you don't... don't be an ass.

My bad MACS. I’ll be polite.

China is kicking our ass at EV and battery production - what do you think about that?

Shouldn’t you be off exploring some underpaid workers?

Perhaps, speaking theoretically but today, you do stick to the narrative.

That's it Gene - If you can't speak to the issues, then attack the man - good boy.

They’re not underpaid but they are all engineers!

Managing engineers is like herding cats.

Ya know back in the day when your gas gauge did not work in your truck, you carried a couple gallon gas can with you in your travels...

I'm wondering how big a Booster Jumper to keep ya going will be? will it fit in the trunk or back bed of the Truck?

So you're the pointy haired manager from Dilbert!
(that is an evaluation, not an attack)

Now I will give you that you may in fact understand the engineering mind set, but wouldn't it be better to understand the engineering? Then we could have a reasonable discussion about the future of EV's.

I’m from the government, I’m here to help.
I’m from the CDC, I’m here to help.
I’m an engineer….