EV registrations soar in 1st half; Tesla Model Y leading the charge

Tesla's Model Y accounted for most of the growth in U.S. electric vehicle registrations in the first half of the year, which more than doubled from the same point in 2020.

The California EV maker registered 81,802 Model Y compact crossovers through June, up from 10,113 in the first half of 2020, according to data gathered by Experian. The model accounted for 38.2 percent of all EVs registered in the first half, and its year-to-date increase of more than 70,000 registrations represented 62 percent of total EV growth during that span.

"A big criticism, I would say, for EVs thus far is that it hasn't really hit the sweet spot in the market quite yet, in terms of price and in terms of size. I think the Model Y does that," said Jessica Caldwell, executive director of insights at Edmunds. "It's not a $100,000 EV, and it's something in terms of size that a lot of people would buy anyways."

Experian data shows 214,111 EVs were registered nationwide during the first half of 2021, up from 98,351 at the same point a year earlier. EVs made up 2.5 percent of all registrations in the U.S., up from 1.5 percent through June 2020.The Model Y's dominance in the growing EV market comes even as other automakers invest in their electric offerings and come to market with new models, including in popular crossover segments. Ford, for example, has become the country's third-largest brand by EV registrations, having registered 11,068 Mustang Mach-E crossovers in the first half. Other recent electric crossover entrants include the Volvo XC40 and Volkswagen ID4.

Tesla's competitors continue to eat into its market share, even as the brand still dominates the EV segment. Tesla accounted for 66.3 percent of all EV registrations in the first half, compared with about 79.6 percent in the first half of 2020.

Chevrolet, the country's second-biggest brand by total EV registrations, saw its electric registrations surge 152 percent from a year earlier to 20,597 vehicles. Audi, the largest non-Tesla luxury brand by EV registrations, rose 134 percent to 7,070 electric vehicles.

Tesla registrations, meanwhile, rose 81 percent from 2020 in large part because of the Model Y. Model 3 sedan registrations rose 8.4 percent to 56,755 vehicles.

Those for the Model S sedan and Model X crossover plummeted 74 percent and 81 percent, respectively, as the automaker dealt with production slowdowns.

More than 100 EV models are planned for sale in the U.S. over the next few years. Caldwell said the arrival of new electric crossovers, as well as upcoming electric pickups such as the Ford F-150 Lightning, will challenge Tesla's dominance in the EV market like never before.

"Other automakers seem like they are finally like, 'OK, we get it,' " she said. "People don't want the small, quirky, weird car that says, 'Hi, I'm an EV.' They want something that looks good."

New EV models will arrive in showrooms as the federal government pushes for more EVs to be sold as part of its effort to address global warming. The Biden administration this month set a target of having EVs make up half of all new-vehicle sales in the U.S. by 2030.

Tesla does not break down its quarterly sales results by country, though Experian's registration data provides an accurate glimpse into the automaker's performance in the U.S.

Much of the Model Y's growth stemmed from California, the nation's largest market and longtime EV hotbed. About 37 percent of all Model Y crossovers registered nationwide through June were in the Golden State, though that figure is down from the 45.1 percent share it had at the same point last year.

Florida accounted for 8.6 percent of Model Y registrations, with Texas (5.5 percent), New York (5.5 percent), Washington (3.8 percent) and New Jersey (3.5 percent) rounding out the top six states by Model Y share.

Caldwell said that while the market for the Model Y and other EVs will become less California-centric as more infrastructure investments come to fruition, it is still likely to be centered around large cities and their suburbs.

"EV sales are going to happen where it's advantageous for people to own them," Caldwell said.

"You're not necessarily going to see them in West Texas or something like that."