Tesla posted a modest upturn in sales for the third quarter after losing ground during the first half of the year. And it wasn’t alone. EVs, PHEVs and conventional hybrids staved off what could have been a much sharper downturn for the U.S. auto industry, helping prop up major manufacturers including General Motors, Ford, Toyota and Mitsubishi.
Demand for the Tesla Cybertruck fell short of expectations in September.
Defying the market’s downward pull, Tesla reported a 9.1.% year-over-year increase in production for the third quarter, the Texas-based automaker’s first gain of 2024.
Despite reports of the EV’s imminent demise, sales have continued to increase this year, albeit at a much more modest pace than manufacturers had seen between 2019 and 2023. And electrified vehicles, in general, helped prevent what could have been a disastrous downtown in the industry as a whole during September.
Overall, battery-electric vehicle sales are on pace to reach 1.6 million this year, according to various industry tracking services, and conventional hybrids are on track to climb even higher.
Tesla turnaround
It’s been a tough year for Tesla, the EV market’s 800-pound gorilla seeing a sharp slump in both sales and market share during the first half of 2024. But it gained some momentum during the third quarter, delivering 462,890 vehicles to customers between July 1 and September 30, a 6.3% jump from the same period a year ago.
Some analysts believe Tesla CEO Musk’s outspoken political views are weakening the company’s sales.
But there were a number of questions that Tesla has yet to answer about its latest report. The figures cover global sales and production and do not break out numbers for individual markets. So, it’s hard to tell whether the automaker reversed the ongoing decline in the U.S. where some analysts suggest Tesla is facing pushback from consumers angered by CEO Elon Musk’s political shift to the hardcore right.
And while Tesla did beat preliminary forecasts, it still fell well short well short of the numbers it would need to meet its full-year target of delivering 2 million EVs worldwide.
Also noteworthy: while the carmaker delivered a combined 439,975 of its Model 3 and Y EVs it managed to hand over the keys for just 22,915 of its three other models, including the new Cybertruck. Considering Tesla had earlier bragged about having over 1 million advance reservations for the electric pickup that appears to indicate it is struggling to translate those into actual purchases.
Ford outpaces market
A new Mustang Mach-E Rally out for a drive on public roads.
Total Ford sales outpaced the industry in September, rising 1% compared with a 2% decline for the overall market. And it credited its electrified vehicles for helping keep the company in the black.
“Different lifestyles and use cases require unique types of power,” said Andrew Frick, president, Ford Blue, and Ford Customer Service Division. “We’ve listened to customers to offer them vehicles with powertrains to meet their specific needs, and their response validates our product strategy.”
Sales of hybrids increased 38% to 48,101 during the third quarter, while all-electric vehicle sales grew 12%. These results come before the launch of the new Ford Power Promise which includes a complimentary home charger with standard installation at no extra charge, and access to a 24/7 Ford advisor for electric vehicle support.
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Electrified products score for Mitsubishi, GM, Toyota
Mitsubishi has experienced strong sales growth in the U.S. thanks to models like the revamped Outlander PHEV.
One of the big winners in the sales derby during the third quarter was Mitsubishi. The Japanese automaker reported a 42% increase in sales during the third quarter, with plug-in hybrid vehicles gathering momentum in the marketplace. Notably, the Outlander Plug-in Hybrid recorded 2,279 sales for the quarter, up 20.8% year over year.
General Motors reported a 2.2% drop in sales during the third quarter, but pointed out several highlights, including a substantial increase in the company’s EV sales and stronger sales of trucks and SUVs.
“GM’s EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everybody, no matter what they like to drive,” said Rory Harvey, GM executive vice president and president of Global Markets.
While Toyota took a harder hit – reporting an 8% sales drop for Q3 and a 20.3% plunge for September – its growing electrified line-up did help keep things from falling further, company officials said.
“In September, nearly 50% of our total sales volume was an electrified model, an achievement made possible by our outstanding team and dealers,” said Jack Hollis, executive vice president, Sales, TMNA.
Several other manufacturers, including Honda, also called out the growing market interest in their various electrified models during the third quarter.
Paul A. Eisenstein contributed to this report.
Tesla is grouped with the losers, but had a 9.1% increase.
Did you at least read the numbers before writing the article?
WTF?