New electric vehicle (EV) sales in the US may reach one million for the first time in 2023, according to Cox Automotive. New electric vehicle sales during the first quarter of 2023 clocked in at 225,000 units, accounting for 7% of the total of new car sales in the US.

New EV sales in 2022 were 807,000. According to Cox Automotive, a million EVs sold will likely account for approximately 6% of total vehicle sales. Additionally, GM sold over 20,000 EV units in a quarter for the first time in 2023.

Used Electric Car Sales Jump

Used car sales during the quarter increased by an impressive 32%. The average price of used cars dropped to $43,400, down 4% from the prior year’s quarter. Used car prices are also considerably lower than those of new cars, which have an average price of approximately $59,000.

Another possible factor in the increase of used electric vehicles is a tax credit offer. Any used EV with a price tag of $25,000 or less bought from a dealer can give you a 30% credit of the price, with a maximum amount of $4,000.

Tesla Cuts Price Again

Tesla has once again cut the prices of its cars as the inflation rate and competition remain high. The current price cut marks the third time the company has lowered its prices. The price cuts ranged between $1,000 and $5,000. The company sold a quarterly record of 422,875 vehicles worldwide but fell just short of the expected 432,000 vehicles.

One possible factor behind these lower prices may be the new requirements for tax credits associated with battery sourcing. The new requirements will result in fewer EV tax credits. Experts also believe Tesla sales are slowing down.

There is also considerable competition from other well-established names in the automotive industry. The news about Toyota overhauling its EV policy and the increasing focus on its EV segment will lead to even stronger competition. Better prices and products will likely be the way forward for EV giants like Tesla.

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