Tesla and General Motors (GM) have both reported an increase in electric vehicle (EV) sales during the third quarter of 2024, reflecting some positive growth in a competitive market. Despite challenges and market fluctuations, both automakers have shown year-over-year progress, offering a glimpse into the evolving EV market. While Tesla continues to lead in volume, GM has demonstrated its ability to capture a growing share of the U.S. market, especially with its more affordable EV options.
What’s Happening & Why This Matters
GM’s Third-Quarter Performance
GM reported that it delivered 32,095 electric vehicles in Q3 2024, representing a 60% increase year-over-year and a 46% rise from Q2 2024. This boost pushed GM’s market share in the U.S. EV sector to 9.5%, up from 7.1% in the previous quarter. GM’s strong Q3 results were driven by its 2024 lineup, particularly the Equinox EV and Blazer EV. The Equinox EV, the most affordable option in GM’s lineup, was the top seller, moving 9,772 units. The Blazer EV followed closely behind with 7,998 sales. Additionally, GM has made efforts to introduce more affordable trims, with a $35,000 version of the Equinox EV now available.
Tesla’s Dominance
Tesla, however, continues to dominate the global EV market. In Q3 2024, Tesla delivered 462,890 EVs globally, a 6.4% increase from the previous year, though it fell slightly below analyst expectations. Tesla’s sales include the popular Model 3 and Model Y, which together accounted for 439,975 of the units sold. While Tesla has seen growth, it has recently discontinued the Model 3 AWD due to the battery’s disqualification from the $7,500 federal tax credit. Now, the entry-level Model 3 is priced at $42,490 and remains eligible for the credit
Luxury Models, Competition, and Impact
Both GM and Tesla offer premium models to attract high-end buyers. Tesla’s Cybertruck, which starts near $100,000, and GM’s Cadillac Lyriq have been key players in this segment. The Cadillac Lyriq sold 7,224 units in Q3 and is outperforming luxury EVs from brands like BMW and Mercedes.
While Tesla continues to hold a larger share of the EV market, GM’s aggressive pricing strategy and a wider variety of models are helping it chip away at Tesla’s dominance. GM’s decision to introduce lower-priced options, combined with federal tax incentives, is making its EVs more accessible to a broader range of consumers. Meanwhile, Tesla’s focus on luxury and long-range vehicles shows that it is targeting higher-end buyers who can afford premium models. Both companies are pushing EV options by offering consumers a variety of options — from budget-friendly models to luxury vehicles
TF Summary: What’s Next
Tesla and GM both boasted growth in the third quarter of 2024 although targeting different segments of the EV market. Tesla remains the overall leader, but GM’s affordable models are making headway especially in the U.S. If this is an EV sales rebound, both automakers are projected to further refine their strategies, offering more affordable options and expanding luxury lineups. Battery technology advancement, better pricing, and government incentives will all play a key roles in shaping the EV market’s direction.
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