As the news of Hertz’s fire sale on previously rentable Teslas makes its way through the news cycle, the rental giant has also quietly announced that it’s pivoting more toward traditional gas-powered vehicles in the future. The company says that it is "rebalancing" the numbers in its fleets, which means selling off a third of its EV fleet and replacing those cars with ICE models. 

According to Automotive News, Hertz said that it expects to sell off 20,000 cars in its EV stock, and that process already started as early as last month. The cash generated from the sales of its EV fleet will be pumped back into meeting demand for rental ICE vehicles. This comes on the heels of Hertz’s October announcement that it would be scaling back its EV operations, citing high repair costs and reduced residual value compared to the rest of its vehicles as reasons why its EV rental operations weren’t going so well.

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The rental car industry is having a reckoning moment with EVs

Rental car customers have had a lot of frustrations with EVs last year, leading big players like Hertz to now focus on gas cars instead. 

To some anti-EV pundits, Hertz is getting its just desserts. To them, Hertz has overinvested in a technology that isn’t proven, ready, or wanted by consumers. Now it has to pay the piper for overbuying a fleet of cars that no one wanted.

But is that what’s actually going on here?

True, the growth in demand for EVs has been a bit softer lately than many expected, but that information is likely immaterial to Hertz’s woes. Hertz has said that 80% of its EVs are Teslas, and although Hertz says that EVs come with higher repair costs, we can’t help but wonder: is this an EV thing, or is it a Tesla thing?

Hertz has claimed that damage and collision costs are high for its EV rentals. Given Tesla’s higher-than-average insurance costs and notoriously long and expensive repair times, it almost feels as if the concept of EV running and repair costs have been conflated as being an EV thing, rather than a more specific Tesla-adjacent problem. (Hertz has not responded to a request for comment from InsideEVs.)

Moreover, not long after it started purchasing Teslas, price cuts as well as the reintroduction of the $7,500 new EV tax credit meant the Model 3 and Model Y became dramatically cheaper. Sometimes literally overnight. Those cars settled down in the mid-$30,000 range and low $40,000 range, respectively. That may be good for consumers in search of a deal, but it had the effect of hurting resale value. Hertz had effectively overpaid for vehicles that it would not be able to get anywhere near as much of a return on when it was time for them to be sold, and resales are a huge source of revenue for rental companies. 

Other automakers may have cut prices, but none as dramatically and carte blanche as Tesla. These problems aren’t just affecting rental companies, as Tesla owners have openly and loudly alleged that reduced residual values due to price cuts have abnormally hurt their resale value. 

But again, that's more of a Tesla problem, rather than an EV problem. The rental car company Sixt seems to recognize this, it still plans to electrify 90% of its rental fleet, but it’s pivoting away from Tesla for similar reasons as Hertz.

(It's worth noting that while the bulk of Hertz's EV fleet is—or was—comprised of Teslas, it also purchased a substantial amount of Polestar 2s as well. It's unclear whether those cars suffered with the same repair cost issues, although we do know they tended to have low resale values as well.)

Finally, it's worth noting that Hertz and other rental car companies haven't exactly nailed the experience and education part of the EV piece. It’s not hard to find a consumer who rented an EV from Hertz and encountered bad customer service, got surprised with an EV and no explanation as to how it works, or received any instruction on how and where to charge.

Heck, I rented a Kia EV6 from Hertz last April in Phoenix. The experience was more than slightly frustrating; I was given a car with a 50% state of charge despite the reservation asserting that the car would be at or close to 100%. I needed to go to Tuscon, about two hours away, and I hadn’t planned or researched online where I could DC fast charge near PHX airport. It’s not fun trying to find an accessible DC fast charger in an unfamiliar city when you’re on a time crunch.

I’m paid to understand these things so perhaps I am naturally more prone to suffering than a normal driver. However, I couldn’t help that this experience could make the average renter hate EVs.

Still, a reduction in the EV fleet doesn’t mean that Hertz is eliminating its fleet entirely. Hopefully, Hertz has learned a lesson here, and a smaller, more streamlined EV renting experience prevails.

On the flip side, the purge of 20,000 EVs from Hertz’s fleets means that used EV deals might be the name of 2024. Those $20,000 three-year-old Teslas might be the rule, not the exception.

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Even with a big infusion of federal money in recent years, charging your electric car in public still isn't the easiest thing to do. The Biden Administration has taken some heat for this situation as of late, but today, it announced some welcome news for EV drivers everywhere: an additional $623 million in grants aimed at putting 7,500 more EV charging ports in the ground across 22 states and Puerto Rico. 

The funding comes by way of the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, which arms the Federal Highway Administration with $2.5 billion to spend on alternative fueling stations, including EV chargers, in local communities and along highways. The grants announced on Thursday were the first awarded through the initiative. 

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Biden's big EV charging plan

President Biden has made it a central mission to combat climate change and get more Americans buying electric cars. Congress has allotted $7.5 billion to build out the country's charging infrastructure.

“This funding will help ensure that EV chargers are accessible, reliable, and convenient for American drivers, while creating jobs in charger manufacturing, installation, and maintenance for American workers,” U.S. Transportation Secretary Pete Buttigieg said in a statement. 

The FHA will dole out $311 million to 36 so-called “community” projects building EV charging and hydrogen fueling stations at schools, libraries, public parks and the like. The other $312 million will go toward “corridor” projects along major highways. 

President Joe Biden has made transitioning U.S. drivers away from gas-guzzlers one of his central policy missions, touting a goal to make half of the country’s car sales electric by 2030. More charging infrastructure—along with more robust and reliable stations—is badly needed to make that happen.

Importantly, the CFI program invests in slower Level 2 charging plugs in local communities, complementing the national network of Level 3 fast chargers that the White House is funding along interstate highways. (While it tends to be less of a priority than fast charging, there remains a strong need for overnight public charging as well.)

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The U.S. government’s $7.5 billion program to blanket the country with 500,000 extra charging stations is only just starting to bear fruit. The first Bipartisan Infrastructure Law-funded charging location came online in December, just over two years after Congress approved the funding. That progress comes on the brink of a presidential election and during a time when electric cars are more politicized than ever. 

Republican lawmakers and presidential candidates—including former President Donald Trump—have ramped up their attacks on EVs, bashing them as impractical, expensive cars that Democrats are forcing on the American public. The more progress the White House can make on charging in 2024, the better things will be—both for EV buyers and for Biden's reelection chances. 

Contact the author: tim.levin@insideevs.com

Lucid Group's electric car production and delivery numbers for the fourth quarter of 2023 brings mixed feelings.

During the period, the company produced 2,391 Lucid Air luxury all-electric cars, which is 32% less than a year ago and delivered 1,734 Airs to customers (globally), which is a 10% decrease year-over-year. However, the positive thing is that both numbers have improved sequentially to the highest level this year, and are actually the second best after the record Q4 2022.

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10,000+ Lucid Airs on the road

The Lucid Air is the company's first and only all-electric model on the market in the ultra-luxury segment. It was introduced in late 2021 and since then the company delivered well over 10,000 units.

We assume that while the overall Lucid sales are lower than anticipated, the situation is improving since the company applied some price reductions in mid-2023 and refreshed its lineup for the 2024 model year.

In the latest update about the results, Lucid does not mention any production related to its new assembly facility in Saudi Arabia (which owns Lucid through its Public Investment Fund). In Q3, the company said that it produced "over 700 additional vehicles in transit to Saudi Arabia for final assembly."

Anyway, the difference between production and deliveries amounted to 657 vehicles in Q4. This adds to the inventory, which now consists of a worrying number of over 5,200 vehicles we estimate.

Lucid Q4'2023 results (YOY change):

Lucid EV Production And Deliveries - Q4 2023

In 2023, Lucid produced 8,428 cars (up 17% year-over-year) and delivered 6,001 cars (up 37% year-over-year), which means that the year 2023 has brought progress. On top of that comes vehicles sent to Saudi Arabia for final assembly (they will be counted as produced in the following quarters, as we understand).

Lucid Q1-Q4'2023 results (YOY change):

For reference, in 2022, Lucid delivered 4,369 electric cars and produced 7,180. Cumulatively, Lucid delivered 10,495 electric cars, compared to more than 15,700 produced (estimated).

Lucid Air Deliveries

Lucid Air Production

Production of 8,428 Lucid Air in 2023 is in line with the company's recent guidance of 8,000–8,500 units announced in November, although below the initial target of 10,000-14,000 vehicles from its Q4 2022 financial report.

There is a lot of disappointment with the results. A few years ago the company promised to reach 20,000 units in 2022. Sales were not even at a third of that level in 2023.

Lucid plans to host a conference call to discuss its fourth quarter 2023 financial results on February 21, 2024.

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These days, lots of car and motorcycle makers have been rolling out electric bicycles either as separate product lines entirely, or to complement their vehicles and showcase a future-forward, outdoorsy character. Porsche, for example, is taking electric bikes pretty seriously with a range of acquisitions in recent years, all of which add up to Porsche eBike Performance GmbH, a company with quite a stellar lineup of e-bikes.

Other companies like Ducati and BMW have dabbled in e-bikes, too, with both brands offering a selection of lifestyle and performance-oriented electric bikes. With that being said, there’s a new player in the e-bike game, and it’s none other than Vietnamese electric car manufacturer Vinfast. Now, the Vietnamese EV company is a fairly new player in the automotive space, having first opened its doors in 2017. Vinfast entered the US market just last year, when it started selling its cars in August. Now, Vinfast is wasting no time in tackling the rapidly growing e-bike segment – an industry that’s forecasted to be worth in excess of $120 billion by 2030.

Dubbed the DrgnFly, VinFast’s approach to the e-bike world is similar to that of Super73, in the sense that it’s sort of a mashup between a bicycle and moped, with some motorcycle-inspired styling cues. The low saddle can’t be adjusted in terms of height, so riders have to pedal along with their knees bent. Furthermore, the moto-inspired headlight, tall handlebars, and chunky tires are all clearly a page out of Super73’s book.

VinFast says that the DrgnFly is inspired by Thang Long, an imperial citadel at the heart of Vietnam’s Capital Hanoi. More specifically, the DrgnFly is meant to symbolize Thang Long’s ascending dragon symbol, which is meant to highlight Vietnam’s rich heritage. Furthermore, the bike was designed in collaboration with Eskild Hansen, a Danish design studio with a number of Red Dot design awards to its name.

On the technology side of things, it’s clear that the VinFast DrgnFly was designed specifically for the US market. It features a 750-watt rear hub motor that promises a top speed of 28 miles per hour. It’s also actuated by a torque sensor, so each of your pedal strokes are taken into account when it comes to providing a smooth and natural-feeling pedal assist. VinFast claims a single-charge range of up to 63 miles, but that would definitely depend on a myriad of variables such as your weight, how strong you pedal, and the terrain on which you ride.

As is the case with most modern e-bikes, the DrgnFly comes equipped with lots of tech. For starters, it gets 4G connectivity, and riders can fine-tune settings via a proprietary mobile app. Ride modes, GPS remote locking, ride stats, and even remote diagnostics can all be viewed through the app, as well. On top of all that, VinFast is continuously improving its tech, and offers over-the-air updates for a seamless user experience.

The VinFast DrgnFly e-bike made its official debut at CES 2024, and carries an MSRP of $2,800 USD – pretty attractive considering how much tech and performance is stuffed into this two-wheeler.

In Case You Missed It:

Source: VinFast

The all-electric car market expands and matures, while the offer evolves to bring more range, power, better charging capabilities, and features. Today, we will take a closer look at the EPA Combined range ratings for the 2023 model year battery-electric cars (BEVs) in the U.S.

According to the data, highlighted by DOE's Vehicle Technologies Office, the model year 2023 was a record one for the median EPA range (the middle value across the market), which amounted to a record of 270 miles—up by 13 miles or 5% compared to 257 miles in model-year 2022. The previous record was 259 miles, achieved in model year 2022.

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EPA range rating

The driving range remains the most important parameter of an electric vehicle (together with its price). The EPA range rating is the only common measure for vehicles sold in the U.S. (and Canada, which mirrors the test procedure), which enables us to compare the models.

The median tells us that half of the models (and particular battery/powertrain versions) on the market have an EPA range of 270 or more miles. Of course, it does not automatically mean that the sales distribution is the same (we would love to see such a comparison).

Meanwhile, the highest EPA range among the model-year 2023 all-electric cars was 516 miles in one of the Lucid Air versions, which is four miles less than a year earlier. 

Median and maximum EPA range of BEVs in the U.S. by model years 2011-2023

Note: Range is based on Environmental Protection Agency estimates. Does not include plug-in hybrid vehicles.

Source: U.S. Department of Energy and U.S. Environmental Protection Agency, Fueleconomy.gov website, accessed November 7, 2023.

The progress over the past decade is quite significant and it clearly shows us that consumers are getting models with more driving range, as well as more models to choose from, in general. In 2011, there were just a few models with a relatively low range, the report says.

On the other hand, the progress is not smooth with a constant improvement rate, as various things change (some models enter the market, some exit), while the test cycle itself changes.

For example, in the case of the 2024 model year, the EPA range will be calculated differently (as an average between the best-case and worst-case driving modes, rather than for a default driving mode), which might result in a decrease in range. We saw that recently with Tesla EVs. Other manufacturers also have to adjust to that.

Anyway, we are quite optimistic to see the median moving up towards about 300 miles.

See also

Source: energy.gov

Back in the early part of the pandemic, rental giant Hertz made history. It started adding Teslas to its rental fleet, in part to replace some of the cars it sold during the crisis to stay afloat. It seemed like a great move at the time—a way to get zero-emission rental cars on the road and maybe introduce drivers to EVs for the first time. But after struggling with repair costs and dramatically lower resale values—that's a big source of income for rental car companies—Hertz is unloading those cars in volume now. 

But, there’s a silver lining here. As those cars exit the rental fleets and enter the used market, two and three-year-old Teslas are making their way to the used car market for not a lot of money. And boy howdy, are there some deals to be had.

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Hertz Sells off hundreds of its early fleet of EVs

Some ex-rental Teslas can be had for as little as $20,000. After the IRA used plug-in vehicle tax credit, the used examples could be had for as little as $16,000.

A quick nationwide search at Hertz’s own used car website reveals more than 700 EVs, most of them ex-rental Tesla Model 3s, going for dirt cheap. Whether it's in Tampa, Cincinnati, Phoenix, Philadelphia, or the greater Los Angeles area, Hertz consistently has a Tesla Model 3 somewhere in the range of $20,000 to $23,000. Chances are, these prices are likely way lower than your local Tesla store, Facebook marketplace private seller, or mom-and-pop dealership.

After the IRA’s used car $4,000 tax credit, it’s very possible to get an example into the $15,000 to $16,000 range, making them essentially half-off the price of a new Model 3.

Many of the cars are also part of Hertz’s rent-to-buy program, where a potential buyer can rent their example for three days before deciding. If they choose to purchase, that rental fee is waived. 

Of course, there are some caveats. There’s not a lot of choice in the lower price range, most of the Model 3s are standard range plus, RWD single motor models, good for 263 miles when new. Hertz does have a few Dual Motor Long Range and Performance units for sale, but the higher prices make them ineligible for the IRA’s used tax credits.

Likewise, Hertz does have a sizable number of Model Ys for sale, but the deals on these cars aren’t as great. Although these cars have significantly fewer miles than the Model 3’s it has on offer, the pricing just isn’t all that competitive for what the brand is offering, partially because they’re too expensive and won’t qualify for the IRA’s used car tax credit.

At a price of roughly $34,000 for a used Model Y with 40,000 miles, that doesn’t make much sense against the discounted on-the-lot new Model Ys that are eligible for the full IRA new car EV tax credit, which could be had for around $35,000, depending on discounts, tax credits, and motor and range specification. 

Of the cheap, IRA-eligible Model 3s Hertz does have, they’re pretty high mile examples for their age. Most of them on Hertz’s lot are in the 70,000 to 90,000-mile range, which means they don’t have that much of the 100,000-mile battery warranty left. That’s a lot of miles to pile on in the first two or three years of a car’s life. Our own Tim Levin and I both think that this meant these were likely part of Hertz’s rideshare program, which means they’ve probably lived a life harder than most Model 3s. That could mean constant DC fast charging that could accelerate battery degradation, and we can’t forget about the sheer number of guests and traffic in and out of the car, accelerating wear and tear. 

It’s interesting to see just how much depreciation has affected Tesla vehicles. During the pandemic, we saw buyers flipping new cars for profit, with prices that were on par or even above offerings from Audi, BMW, or Mercedes-Benz. Now, dramatic price cuts, and Tesla’s requalification for EV tax credits have brought new examples to mainstream car levels. In 2021, a Tesla Standard Range Plus sedan would have been $44,990, not counting any taxes or destination fees. To sell that same car three years later for barely $20,000 certainly must be a bitter pill to swallow. 

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When the Model 3 was launched in 2017, it didn’t have any direct electric sedan rivals, which is part of the explanation behind its remarkable market success, but now, in 2024, the situation is completely different. It now has to fend off rivals from established automakers like BMW, Mercedes-Benz, and Hyundai, all of which now offer competent electric sedans in America.

Fortunately, Tesla gave the Model 3 a thorough exterior and interior makeover last year and added plenty of new features. And now that you can configure a Model 3 Highland in the U.S., we wanted to see how the revised model stacks up against some of the new rivals that have popped onto the scene over the last couple of years. The rivals we’re comparing it against are the BMW i4, Polestar 2, Hyundai Ioniq 6, and new Volkswagen ID.7.

Mind you, they are not exactly direct rivals since the Model 3 is quite a compact and affordable vehicle, and some of the vehicles mentioned here may be a bit bigger and more expensive. However, they are still all smaller than the Tesla Model S, and they will probably be cross-shopped with the Model 3 and not its bigger brother.

Let's take a look and see where the updated Model 3 stacks up in a game it basically created.

Range

The revised 2024 Tesla Model 3 doesn’t just look sharper than the pre-refresh model; but it’s better at cutting through the air, with a lower drag coefficient of 0.219. This allows it to travel a bit further than before on one charge, even though the batteries and motors are largely untouched. The base Rear-Wheel Drive 2024 Model 3 still uses the LFP battery pack and has the same 272-mile EPA range, while the Dual-Motor Long Range gets a bump from 333 miles to 341 miles.

That’s less than what the Hyundai Ioniq 6 offers 361 miles of EPA range in SE RWD Long Range trim, which is its longest range configuration—Tesla no longer offers an equivalent long-range rear-wheel drive variant of the Model 3. If you opt for all-wheel drive in the Ioniq 6, the EPA range drops to 270 miles.

After it was updated in the summer of 2023, the Polestar 2’s EPA range ratings went up thanks to a revised powertrain and the use of a slightly larger-capacity battery pack. The range for the single-motor variant is 320 miles, or 307 miles if you opt for the larger optional 20-inch wheels.

The base single-motor version of the BMW i4, the eDrive35, has an estimated range of up to 276 miles, which goes up to 301 miles in the eDrive40 model and 307 miles in the xDrive40 dual-motor all-wheel drive variant. Opt for the top i4 M50 version, and the maximum range drops to 269 miles.

Volkswagen’s ID.7 sedan is the newest entrant, and it has not yet received its EPA range rating. In Europe, it gets a WLTP rating of nearly 400 miles, but Volkswagen has said that for the US, it is targeting a range of 300 miles, which seems reasonable given the car’s battery pack size and specifications.

The takeaway here is that even though the Model 3 hasn’t received a significant technical update with the facelift, it’s still one of the longest-range sedans available in the US. It’s only beaten by the single-motor Hyundai Ioniq 6, and chances are, if Tesla offered a similar Long Range Rear-Wheel Drive version of the Model 3, it would surpass the Hyundai.

Charging

The Hyundai Ioniq 6 is the only vehicle in this list with an 800-volt architecture, courtesy of its E-GMP platform. It’s the quickest to charge too, with a theoretical maximum charging speed of 350 kW that can bring its state of charge from 10 to 80 percent in 18 minutes.

The Ioniq 6 was the quickest-charging EV in America, according to testing from Edmunds. Hooked up to a sufficiently powerful charger, the Hyundai can replenish range at a rate of 868 miles per hour, notably quicker than even other E-GMP-based models.

The Model 3 Long Range can charge at up to 250 kW, while the Rear-Wheel Drive and Performance variants are capped at 170 kW and 210 kW, respectively. It still charges quickly, even by the latest standards, but it can only add 569 miles per hour.

BMW isn’t too far off with its i4, which can take up to 205 kW, enough to bring its battery from 10 to 80 percent in around 31 minutes. It gains range at a rate of 477 miles per hour, according to Edmunds' tests.

Polestar limits the maximum charging speed for its 2 sedan to 205 kW, and that’s only for the long-range single-motor version, which can go from 10 to 80 percent state of charge in 28 minutes. Dual-motor versions are limited to 155 kW, so charging to 80 percent takes 34 minutes. Its peak rate of range replenishment is 355 miles per hour.

The Volkswagen ID.7 can charge at a maximum of 175 kW, which can add 127 miles of range in 10 minutes or bring the battery from 10 to 80 percent in 28 minutes.

The 400-volt Tesla Model 3 can’t hope to compete with the charging speeds of vehicles running on 800 volts, like Hyundai and Kia vehicles built on the E-GMP platform or the Porsche Taycan. However, its charging performance is still pretty impressive and let’s not forget that the Model 3 takes full advantage of the best charging network around, which still makes topping up a Tesla much more reliable and hassle-free than any other brand.

Performance

The Tesla Model 3 Performance is the top-of-the-range version in the Model 3 lineup, and its stats are pretty impressive. You can’t configure the refreshed Model 3 Performance yet, but the 2023 model had a combined output of 455 horsepower and 487 pound-feet from its two motors. Thanks to its all-wheel drive grip off the line, it could sling itself to sixty in 3.1 seconds and to 162 mph flat out.

The 2024 Model 3 Rear-Wheel Drive can sprint to 60 mph in 5.8 seconds, while the Dual Motor Long Range drops that to 4.2 seconds. Both of these versions are limited to 125 mph at the top end.

Even though the BMW i4 M50 has more power and torque than the Model 3 Performance, with 536 horsepower and 586 pound-feet, it is considerably heavier (it weighs over 5,000 pounds in this version), so it needs 3.7 seconds to accelerate to 60 mph from a standstill. Its top speed of 142 mph is also lower than the Tesla’s.

The single-motor 282-horsepower i4 eDrive35 needs 5.8 seconds to reach 60 mph, with the 335-horsepower eDrive40 variant dropping that to 5.4 seconds and the dual-motor xDrive40 model taking it to 4.9 seconds. None of these non-M variants can exceed 124 mph.

Polestar is the only manufacturer in this company to offer a special hardcore performance version of its model, the limited-series 2022 Polestar 2 BST 270. Its dual-motor setup made a combined 469 horsepower and 502 pound-feet of torque, enough to send it to sixty in a little over 4 seconds (although MotorTrend found that it was capable of completing the benchmark sprint in 3.9 seconds in its independent testing).

Now you get those numbers in the 2024 Polestar 2 Dual Motor with the performance pack. that boosts power from 421 horsepower to 455 horsepower. Torque remains the same at 536 pound-feet, but the sprint time drops from 4.3 seconds to 4.1 seconds.

The base single-motor Polestar 2 (now rear- instead of front-wheel drive) produces 299 horsepower and 361 pound-feet of torque, and it can accelerate from naught to sixty in 5.9 seconds. All Polestar 2 variants are limited to 127 mph.

The Hyundai Ioniq 6 seems to be the least performance-oriented out of this selection of cars, but it’s by no means a slow car. The base rear-wheel-drive, 225-horsepower version also makes a healthy 258 pound-feet of torque, enough to push the vehicle to sixty in just over 6 seconds and give it decent punch while on the move. Add a second motor and all-wheel drive, and the combined output goes up to 320 horsepower, which cuts the sprint time to 5.1 seconds.

Hyundai is rumored to be working on a dedicated Ioniq 6 N performance model that will surpass the Ioniq 5 N for power and performance, but it is believed that it won’t arrive until 2025. With a predicted output of over 641 horsepower, it will give all the vehicles on this list a run for their money.

Volkswagen has so far only said that the single-motor, rear-wheel drive ID.7 will feature a 282-horsepower drive unit that will push it to 62 mph (100 km/h) in 6.5 seconds and on to a top speed of 112 mph. Dual-motor variant specs have not been released but it should be quite a bit more powerful and quicker than the dual-motor VW vehicles built on the MEB platform so far.

Tech

Autopilot and Full Self-Driving Beta are arguably Tesla’s biggest tech features that set it apart from its competitors (besides access to the excellent Supercharger network.) All other vehicles in this company can offer some semi-autonomous driving features, yet the Tesla is the closest to being able to drive itself. FSD is still not perfect, but it’s improving.

Being based on the E-GMP dedicated electric vehicle platform, it offers vehicle-to-load (V2L) capability, which allows you to use the vehicle’s massive battery pack to power tools, appliances, and even an entire campsite. None of the other vehicles in this article offer bi-directional charging.

The BMW i4 is built on a variation of the company’s CLAR architecture, which is also used to underpin its internal combustion engine models. However, while it doesn’t have a standout tech feature, being a BMW, you can spec it with a plethora of systems and gadgets that make it feel far more posh and upmarket than any of the other cars here.

The Polestar 2 was the first car ever to feature an Android-based infotainment system with Google features built-in. It’s one of the best and easiest to use on the market, and it’s a lot less daunting for newcomers compared to Tesla’s iPhone-like interface, which may overwhelm with its multitude of menus, submenus, and options.

The big tech feature that Volkswagen seems to be pushing with the ID.7 is its augmented reality head-up display, which we’ve also seen on other VW ID models. It will also offer striking 3D LED tail lights with animations that transform the look of the rear end, so this is probably going to be a popular option for design-conscious buyers.

Price

Regardless of whether a vehicle is powered by gasoline or electrons, price is still a major deciding factor behind the purchase. You can buy a Tesla Model 3 Rear-Wheel Drive in 2024 starting at $38,990, while the Long Range All-Wheel Drive model pushes that to $45,990.

It considerably undercuts the similar-size Polestar 2, which in Long Range Single-Motor trim starts at $49,900, with the all-wheel drive model pushing it to $55,300. If you want the full level of performance that it can offer, you will need to spend an additional $5,500 on the performance pack.

With a starting MSRP of $42,450, the Hyundai Ioniq 6 SE comes closest to the Tesla. Opting for an all-wheel drive SEL dual-motor bumps the price to $45,250, while the top Limited trim starts at $50,150 with its additional premium features.

Pricing for the Volkswagen ID.7 has yet to be announced, but it is expected to start at around $50,000 and exceed $60,000 in top dual-motor configuration.

It probably doesn’t come as a shock that the BMW is the most expensive of the cars mentioned here. The base i4 eDrive35 is the most affordable, starting at $52,200, which is considerably cheaper than the eDrive40 variant, which kicks off at $57,300. The i4 xDrive40 all-wheel drive model starts at $61,600, and the i4 M50 starts at $69,700.

Conclusion

Tesla has left the mechanical side of the Model 3 Highland effectively untouched, so pretty much every major component is carried over from the pre-refresh variant. But even so, the Model 3 is still the gold standard in this world, blending range, tech, performance, and affordability in a way that rivals still can’t match. The revised Model 3 also looks better on the outside, and its revamped interior has nicer materials and improved attention to detail. It was the interior of the Model 3 that needed the biggest revamp, and even though it’s not completely new, it is a more pleasant place to sit than before.

Its biggest rival is still arguably Polestar 2, which is the most similar vehicle available for purchase in the U.S. But now that the Hyundai Ioniq 6 has also been released, compact and midsize electric sedan buyers have another very competent and reasonably affordable model to choose from.

Depending on how keenly it is priced, the Volkswagen ID.7 also has a good chance of stealing buyers away from the Model 3 and maybe even the larger Model S, since its size puts it in between the two Tesla sedans.

The point is this: if you want a high-range electric sedan, your choices are now better than ever.

More On The Tesla Model 3

The all-electric Rivian R1T pickup recently received a new Max Pack battery option (149 kilowatt-hours of total capacity), joining the initial Large Pack (about 135 kWh). However, the range increase turned out to be relatively small, especially considering the $10,000 price difference.

The Out of Spec Reviews team recently had an opportunity to range test two basically brand new Rivian R1Ts—one with the Max Pack (the blue one) and one with the Large Pack (the silver one)—in a side-by-side range test at a mostly constant 70 mph speed in slightly cold weather conditions.

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Rivian R1T is a pioneer

The Rivian R1T is one of the first modern, all-electric pickups on the market. It was initially launched with a 135-kWh battery and 300+ miles of range. In 2023, Rivian introduced the Max Pack option, but with a lower capacity than initially anticipated (149 kWh instead of up to 180 kWh).

According to the specs, the Rivian R1T Dual-Motor (default 21-inch wheels) has an EPA Combined range of 352 miles when equipped with the Large Pack. The Max Pack increases the battery capacity by about 10%, which is promised to increase the EPA range by 52 miles (or 16.5%) to 410 miles.

In the Out of Spec Reviews test, the results are lower due to less-than-optimum weather conditions, but the key thing to focus on is the difference between the two versions.

According to the video, the Rivian R1T Large Pack was able to cover 308.3 miles (0 miles / 0% state-of-charge) using some 128.2 kWh of energy or 2.41 mi/kWh (display info). The vehicle then consumed a few more kWh in the parking lot (full discharge to turtle mode when stationary), for a total of 132.1 kWh, which translated into a potential range of 317.2 miles from 100% to full discharge (after subtracting some estimated energy for auxiliary purposes).

Meanwhile, the Max Pack version covered 337.5 miles (at 2.38 mi/kWh, using 141 kWh of energy). After that, it was still able to deliver 2.3 kWh for a total of 143.3 kWh for a potential range of 339.5 miles (from 100% to full discharge).

It means that the real-world difference between the two amounted to roughly 11 kWh, 22.3 miles (or 7%), which appears disappointing, especially considering the $10,000 added cost of the Max Pack (some $448 per mile of added potential range in the test conditions). The energy consumption of the two versions was very similar.

This is just one data point, but it indicates that the difference between the two versions is small. It's worth noting that Rivian initially hinted at a larger 180 kWh Max Pack (which didn't happen), which would probably be much more capable.

* federal tax credit of up to $7,500 might be available for both versions through leasing

See also

The Tesla Model Y is arguably one of the best EVs on the market, at least when it comes to driving range, availability, and price. In fact, it’s Tesla’s most successful model, holding the title of the world’s best-selling car—including internal combustion vehicles, not just EVs—for much of 2023.

That said, not everybody wants to buy a car that’s as ubiquitous as the iPhone these days. Some are looking for a sportier ride and maybe even a history-rich nameplate, which is where the Ford Mustang Mach-E comes into play.

While its sales numbers can’t match those of the Model Y, with a smidge under 41,000 units sold in 2023 in the U.S., compared to the roughly 200,000 Model Ys sold in just the first half of 2023, the Mustang Mach-E is still a good choice for anybody willing to shop around and not go by sales figures alone.

Tesla Model Y

2023 Ford Mustang Mach-E

So, without further ado, let’s look at how the two electric crossovers compare.

Tesla Model Y vs. Ford Mustang Mach-E: Price

The entry-level Model Y, which is known as the Rear-Wheel Drive because it’s powered by a single rear-mounted electric motor, includes standard equipment such as 19-inch Gemini wheels wrapped in all-season tires, a Midnight Silver Metallic paint, an all-black interior, and seating for five people.

The base package also comes with a glass roof, a central touchscreen display, a heated steering wheel, heated front and rear seats, a dual wireless smartphone charger, as well as power-adjustable front seats.

Tesla Model Y Interior

That said, you won’t see any gauges or displays behind the steering wheel of the Model Y, with all the car info being related to the centrally mounted touchscreen alone. It’s definitely a departure from the more conventional setup that’s found in cars made by legacy automakers, and there’s a bit of a learning curve with Tesla’s system, but on the flip side, the infotainment is among the best out there, so once you’ve learned all the settings, you’re good to go.

Every single Model Y, irrespective of trim level, comes with pretty much the same features. In fact, Tesla doesn’t really do trim levels in the traditional sense. Instead, you can choose different powertrain options that come with slightly different wheels and some other cosmetic bits, but that’s it.

In other words, you don’t have to spend extra for a more expensive variant just to get the glass roof, as is sometimes the case with other carmakers. At the same time, however, you can’t get a car without a sunroof, either, which might put some people off.

Tesla Model Y

There is a list of optional extras, but it’s pretty thin, with different wheels, paint colors, and a tow hitch among the things you can tick in the online configurator.

The base RWD version can go from zero to 60 miles per hour in 6.6 seconds and on to a top speed of 135 mph. For $5,000 more you can get the Dual-Motor All-Wheel Drive Long Range which offers a quicker 0-60 mph time of 4.8 seconds, while the top speed is the same. The Performance variant, which is listed at $52,490, cuts the sprint time to 3.5 seconds and raises the top speed to 155 mph.

To sweeten the deal, all three Model Y trim levels are eligible for the $7,500 federal tax credit as of January 2024.

Ford’s electric crossover is available in four trim levels: Select, Premium, California Route 1, and GT (and there’s a Rally version in the works, too). The Select and Premium come as standard with a single rear-mounted electric motor, but a dual-motor all-wheel-drive system is available as a $3,000 option for both trims.

The California Route 1 and the GT come as standard with AWD, and the maximum power output is 480 horsepower.

2023 Ford Mustang Mach-E GT Performance in Vapor Blue

The base version comes with a 72-kWh (usable capacity) battery pack, while the other versions can be specced with a bigger, 91-kWh extended-range pack that ups the driving range. Earlier in the crossover's life there was a 70-kWh base battery pack but that was superseded by the 72-kWh version.

Standard equipment includes a 15.5-inch central touchscreen and a 10.2-inch digital instrument cluster in front of the steering wheel, a manual liftgate, a drainable front trunk, rain-sensing wipers, heated side mirrors, manual adjustment for the front passenger seat, 8-way power adjustment for the driver’s seat, a 360-degree camera, SiriusXM radio, a wireless charging pad for smartphones, and a 6-speaker audio system.

Upgrade to the Premium, which starts at $46,995, and you get a panoramic fixed-glass roof, a 10-speaker B&O sound system by Band & Olufsen, Ford’s BlueCruise 1.2 hands-free highway driving assistant, a power liftgate, as well as heated and 8-way power-adjustable front seats.

Ford Mustang Mach-E Interior

Step up to the California Route 1 and you get the bigger battery as standard, enabling an EPA-estimated driving range of 312 miles on a full charge. The $56,995 price tag also includes all-wheel drive but excludes the power liftgate and the power-adjustable front passenger seat.

Go for the $59,995 GT model and you get the most powerful and fun-to-drive Mustang Mach-E available, with 480 horsepower and up to 634 pound-feet of torque. This version comes with all the bells and whistles of the Premium and adds an upgraded front motor, 20-inch wheels, and summer tires (as opposed to the all-seasons that come with the other variants). 

There’s also an additional $5,000 GT Performance Edition pack that comes with a pair of Ford Performance front seats with fixed head restraints and a MagneRide Damping System.

All in all, the Mustang Mach-E is more expensive than its Tesla competitor. Furthermore, none of the electric Mustang’s trim levels are currently eligible for the $7,500 federal tax credit when buying (not leasing), which is a pretty big deal for shoppers trying to save a buck.

Tesla Model Y trim levels and prices

Ford Mustang Mach-E trim levels and prices

Tesla Model Y vs. Ford Mustang Mach-E: Range

The EPA-rated range of the entry-level RWD Model Y is 260 miles, while the Long Range increases that number to 310 miles. The Performance fits somewhere in between with an estimated driving range of 285 miles on a full battery.

By comparison, the Ford Mustang Mach-E can travel anywhere between 226 miles and 312 miles on a full charge, according to the EPA, depending on the battery size and powertrain configuration.

The standard range, all-wheel drive Mach-E is the worst offender, with 226 miles, followed by the standard range, rear-wheel drive model with 250 miles, while the Premium with rear-wheel drive and the extended range battery can drive for up to 310 miles. The California Route 1, despite having all-wheel drive, is the best when it comes to range, with an estimated 312 miles on a full charge.

Tesla Model Y

2022 Ford Mustang Mach-E GT

That said, various factors such as driving speed and ambient temperature can decrease the number of miles that can be driven on a full charge, and it’s not uncommon for Tesla models to fall short of their advertised ranges when tested under real-world conditions.

A Consumer Reports article shows that the Model Y did not meet its advertised range all year round, with the worst scenario being a highway drive at a constant 70 miles per hour and an average temperature of 16 degrees. In these conditions, the Model Y Long Range returned a calculated real-world range of just 186 miles.

The Mach-E, on the other hand, beat its EPA estimate by 29 miles in CR’s testing, going 299 miles before running out of juice instead of the advertised 270 miles.

Tesla Model Y vs. Ford Mustang Mach-E: Efficiency

The EPA says that the Model Y can consume between 26 and 30 kilowatt-hours per 100 miles driven, depending on the powertrain.

The most efficient version is the base RWD, with 26 kWh/100 miles, followed by the AWD Long Range with 28 kWh/100 miles. At the same time, the AWD Performance is the least efficient with 30 kWh/100 miles.

According to the EPA, the Ford Mustang Mach-E is more energy-hungry than its Tesla competitor, with the most efficient version, the standard range, rear-wheel drive needing 33 kWh/100 miles. On the other end of the spectrum, the GT Performance munches through 41 kWh/100 miles.

Tesla Model Y vs. Ford Mustang Mach-E: Charge Time

Tesla specifies that the Model Y RWD can accept up to 170 kW of power from a DC fast charger, while the Performance and Long Range versions can draw up to 250 kW from a compatible fast charger.

The electric crossover can be topped up from a 120-volt household outlet using the Tesla Mobile Connector, a 240V source using the Tesla Wall Connector, or the DC fast charging network of Tesla Superchargers. When connected to a Supercharger, the Model Y can gain up to 162 miles of range in 15 minutes, according to the company. 

The car can also be recharged from other DC fast chargers, including those that have a CCS cable and not the NACS connector used by Tesla, as long as you have a CCS1 to NACS adapter.

Tesla Model Y charging at a Tesla Supercharging station

Ford Mustang Mach-E charging

The Ford Mustang Mach-E can accept up to 150 kW when topping up from a DC fast charger. Models with the older 70-kWh base battery pack peaked at 115 kW when DC fast charging.

Ford says the Mach-E can go from 10 to 80% state of charge in 33 minutes for the standard range battery, while the extended range pack needs 45 minutes for the same top-up.

The American EV can also be recharged from a household socket rated at either 120V or 240V using a compatible mobile charger. Ford sells one for $500 and is actually a mandatory option when speccing a brand-new Mustang Mach-E.

Currently, the Tesla Supercharger network is regarded as the best DC fast charging network in North America, with very good reliability and availability. It’s long been exclusive to Tesla vehicles (with the exception of Magic Dock-equipped stalls), giving the company an advantage over competitors. Starting this year, though, almost all competing EV makers, including Ford, will get access to the Supercharger network, which will alleviate some of the pains of EV owners and, at the same time, eliminate the exclusivity that has been associated with Tesla owners and the Supercharger network.

Ford also has its own charging network called the BlueOval Charge Network, which includes several roaming partners.

Tesla Model Y vs. Ford Mustang Mach-E: 0-60 MPH

The Tesla Model Y Rear-Wheel Drive can sprint from zero to 60 miles per hour in 6.6 seconds, while the Long Range trim is slightly faster, reaching 60 mph in 4.8 seconds. The Performance version can do it in 3.5 seconds.

The Model Y Performance can reach a top speed of 155 mph, while both the RWD and the Long Range variants have a maximum speed of 135 mph.

Ford says on its website that the rear-wheel-driven version of the Mach-E with the 72-kWh battery can go from a standstill to 60 mph in 6.3 seconds.

The California Route 1 trim, with its extended-range battery and all-wheel drive system, can reach 60 mph in 4.8 seconds, while the GT version, with its upgraded e-motors, slashes the time to 3.5 seconds.

Tesla Model Y

2022 Ford Mustang Mach-E GT

Tesla Model Y vs. Ford Mustang Mach-E: Top Speed

The Tesla Model Y RWD and Long Range can go up to 135 mph, while the Performance version ups the top speed to 155 mph.

Ford doesn’t publicize the top speed of the Mustang Mach-E, but you might see a figure of 130 mph for the top GT trim floating around the internet, so take that as you may.

Tesla Model Y vs. Ford Mustang Mach-E: Driver-Assistance Systems

Tesla’s entire portfolio of passenger cars is available with the company’s so-called Autopilot advanced driver-assistance system (ADAS). This includes traffic-aware cruise control and a steering assistant called Autosteer. 

As an optional extra, the $6,000 Enhanced Autopilot suite adds supervised, Level-2 capable automatic lane changes, automatic parking, and the so-called Navigate on Autopilot feature which “Actively guides your car from a highway’s on-ramp to off-ramp, including suggesting lane changes, navigating interchanges, automatically engaging the turn signal and taking the correct exit,” according to Tesla.

On top of that, there’s the so-called Full Self-Driving (FSD) option which costs $12,000 and adds the ability to autonomously steer the car on city streets and to automatically stop at traffic lights and stop signs. That said, Tesla mentions on its website that driver supervision is needed at all times and that none of these features make the car autonomous.

Ford’s all-electric crossover comes as standard with the company’s so-called Co-Pilot360 suite of active and passive safety assists, including auto high-beam headlights, blind-spot monitoring with cross-traffic alert, lane-keeping, pre-collision assist with automatic emergency brain, forward collision assist, post-collision braking, and more.

The cheapest Mustang Mach-E also comes with a 90-day free trial of the company’s BlueCruise system which is a hands-free driving assistant that works on over 130,000 miles of prequalified sections of divided North American highways. That’s 97% of controlled-access highways across the U.S. and Canada, according to Ford.

On these roads, the system can change lanes automatically once the turn signal is activated, and it can reposition the car in the lane by subtly shifting away from vehicles in adjacent lanes. This is on top of keeping a safe distance from the vehicle in front, following the road without getting out of the lane, and braking when needed.

For an extra $2,100, buyers can add three years of BlueCruise 1.3 to their purchase, which helps drivers stay engaged longer in hands-free mode, according to the company.

Tesla Model Y vs. Ford Mustang Mach-E: Interior

The standard panoramic glass roof gives the Model Y an airy feel to the cabin but it can also cause some issues in the summer, seeing how there’s no factory-fitted sunshade to protect the occupants from the sun.

Tesla says that the glass is treated so that infrared and ultraviolet light is “effectively blocked,” but a quick browse through owner reviews on YouTube is all it takes to see that there are more than a few owners complaining about having trouble keeping their cars’ interior cool on a very hot and sunny day.

The RWD and Performance versions can only be specced with five seats, while the Long Range has an optional seven-seat package that can be added to a custom build.

The central 15-inch touchscreen has native apps for services like Spotify and Apple Music, but it lacks integration with Apple CarPlay and Android Auto neither wired nor wireless connectivity is available). There is, however, Bluetooth connectivity.

Despite its fastback roofline, the Mach-E offers ample room inside for four adults, and with the optional panoramic roof, it feels bigger than it actually is.

Ford’s electric crossover is only available in a five-seat configuration, so don’t expect it to be as versatile as the Model Y when it comes to carrying a lot of people. That said, it has plenty of storage cubbies inside, so for what it is, it’s pretty well thought out.

The 15.5-inch central touchscreen runs Ford’s latest Sync infotainment system that offers a great built-in navigation system, as well as standard wireless Apple CarPlay and Android Auto. The system itself is nicely laid out and it doesn’t take much time to get familiar with its menu system.

Tesla Model Y vs. Ford Mustang Mach-E: Build Quality

Tesla models have been known for their less-than-stellar build quality, especially the lower-priced ones, and the Model Y is no different. Although things have improved over time, there are still problems with body hardware, paint, trim, and the climate control system, according to Consumer Reports.

In the Mustang Mach-E’s case, expect to see Ford’s usual interior build quality, which is not great, not terrible, to quote the internet-famous meme from HBO’s Chernobyl series.

Tesla Model Y vs. Ford Mustang Mach-E: Driving Dynamics And Ride Comfort

Despite its weight of about 4,300 pounds (for the all-wheel drive versions), the Model Y is surprisingly engaging to drive. The steering feels light and quick and the body stays relatively composed during hard cornering.

It’s not perfect, though. On uneven surfaces, small bumps and cracks make their way to the cabin, especially on the Performance.

The Mustang Mach-E feels more dialed in, with a suspension that’s great at soaking up large bumps in the road and a cabin that’s well insulated against wind and ambient noise. When driving down your average highway, the car feels nicely put together and offers a relaxing ride, but it’s also capable of putting a smile on the driver’s face around sharp turns.

What Our Experts Say

Hard specs will only tell you so much. That’s why we encourage everyone to try both cars as extensively as possible to see which one is suited best to their needs. Until that happens, here are some words from our team of expert journalists about each option. 

We've said it before and we'll say it again: the Model Y is the EV to beat this year (excepting any markets where new contenders from China's automakers are giving it a run for its money.) Sure, everyone in your city has one at this point, but there's a reason for that. For the price, capability and range—and with Tesla's Supercharger network backing it up—it's the value-packed choice that's very hard to match.

There are plenty of reasons to want something that's not a Model Y these days, but I can't fault anyone for going for it. Maybe that will change in the coming years, but for now, almost everyone who's come at this king has missed. 

—Patrick George, Editor-in-Chief

It’s arguable that the Model Y is so popular less because of its merits as a car, but more so because it’s such a screaming deal. There are several ways to get into a Tesla for not much money: the single motor, 260-mile range Model Y can be had for $43,990, not including destination or any other fees. Likewise, the 330-mile range dual-motor AWD can be had for $46,050, provided you’re willing to settle for whatever color and wheel option Tesla has available.

Those are solidly competitive prices for a premium crossover, no matter the propulsion type. A gas or hybrid-powered Lexus NX350, or Acura RDX, in theory, matches the Model Y in terms of premium prestige. But, add in the IRA’s point-of-sale tax credit, and the Model Y becomes an absolute bargain. At $36,490 (RWD) and $38,550 (AWD, on-lot discounts), the Model Y becomes as cheap as mid to high-trimmed compact crossovers. Hell, it’s a stone’s throw away from a few of the subcompact crossovers I’ve driven not that long ago.

—Kevin Williams, Staff Writer

The first time I drove a Mustang Mach-E, I was convinced it was proof that Ford really is serious about electric vehicles. I was impressed by the many little touches engineers and designers added to make it "feel" like a Mustang (yes, really) and I thought it was an absolute blast to drive. Capable and fun, the Mach-E is a delight in so many ways. 

Unfortunately, these days it gets seriously undercut by the Model Y's knockout-punch combo of range and price. If you want more than 300 miles of range—my personal sweet spot—expect to pay $56,000 for a California Route 1, with no tax credit help as of this writing. With the credits the Model Y All-Wheel Drive Long Range does get, it seriously undercuts this electric pony car.

I'd like to see Ford juice the range on this crossover more in the coming years. It's one of my favorite direct competitors to the Model Y, but lately it's having a hard time measuring up.

—Patrick George, Editor-in-Chief

What the NACTOY-winning Mach-E offers more of than any other EV in its class is personality. This is not an appliance, not even close. Ford smartly used the iconic pony car nameplate to inject some life into its first true mass-market EV, which also blends superior driving dynamics, impossibly good looks, and a few honest-to-goodness muscle car characteristics.

—Jeff Perez, Managing Editor, Motor1

Tesla Model Y vs. Ford Mustang Mach-E: Conclusion

The Model Y is hard to beat, let’s face it. With prices that appear to be going down constantly, range figures that are more than enough for the average consumer, and a user experience that’s closer to that of owning a smartphone rather than a conventional car, Tesla’s most affordable crossover has taken the world by storm.

But it’s not perfect, and wannabe shoppers need to take into account the slightly unpolished ride, lack of Apple CarPlay and Android Auto, as well as the over-simplified interior that relies on a single screen to relay information to the driver.

Tesla Model Y

2023 Ford Mustang Mach-E

For more money, the Ford Mustang Mach-E offers a better ride, a more engaging drive, and an interior that looks like the natural evolution of the conventional car that we all have in our minds. It even has 2 extra miles of advertised driving range when considering the California Route 1 versus the Model Y Long Range. That said, the charging speeds are lower, so expect to spend more time at DC fast chargers compared to the Model Y.

Now, Tesla has the upper hand thanks to its vast Supercharger networks of fast chargers, but that’s about to change come spring when owners of Ford EVs will also gain access to the same network (by way of an adapter at first). In other words, the user experience gap that set Tesla apart from its competitors for years will be smaller than ever before and maybe it will even disappear altogether.

Correction: This story has been updated with the accurate battery pack size information for the entry-level 2023 Mach-E Models. 

More Comparisons

After several months of industry analysts and even companies' reps warning of a slowdown in the speed of electric vehicle adoption, the sales results for 2023 paint an optimistic picture.

According to estimated data from Cox Automotive, there were 376,230 more EVs sold in the United States last year for a total of 1,189,051 units. But what about individual models? We combed through the numbers and came up with the 20 best-selling EVs in the U.S. in 2023.

1. Tesla Model Y

The undisputed champion of the EV segment in the United States in 2022 keeps its spot for 2023 thanks to its impressive growth. At the end of last year, Tesla’s best-selling model had a whopping 33.2% share of the battery-powered vehicle segment.

Compared to 2022, the Model Y saw its sales numbers increase by 142,523 units, which translates to a 56.6% bump.

2. Tesla Model 3

In the electric sedan segment, nothing comes close to the Model 3 when sales numbers are considered. Last year, Tesla’s entry-level EV saw a marginal improvement over 2022–just 9,292 more units–but that could change now that the refreshed Model 3 finally became available in North America.

3. Chevrolet Bolt EV/EUV

The American compact hatchback/crossover duo made by General Motors was still going strong last year and even recorded 62.8% more sales compared to 2022, making GM’s decision to retire both models pretty hard to understand.

In fairness, though, the Bolt will eventually return in the near future in EUV-only form and will ride on the company’s modern Ultium platform. It might also get a version with cheap-ish lithium iron phosphate (LFP) batteries that might make it a better deal than the outgoing model.

4. Ford Mustang Mach-E

Ford’s rival to the Tesla Model Y saw a minor increase in sales in 2023 compared to 2022 (3.3%), putting it in fourth place. The fact that none of the Mach-E trim levels are currently eligible for the $7,500 tax credit when buying instead of leasing probably won’t help sales for this year, but we’ll see what the numbers will show next year.

5. Volkswagen ID.4

Despite much talk about the VW brand not being profitable anymore and EV factories put on hold in Europe, the ID.4 crossover had an amazing year in terms of sales in the U.S. Compared to 2022, the German EV saw its sales increase by a whopping 84.2%, enough to put it in fifth position on the list of best-selling EVs in the United States.

6. Hyundai Ioniq 5

Hot on the tail of the ID.4 is the up-and-coming Ioniq 5 from Hyundai, which is also one of the better rivals to the Tesla Model Y. Parent company Hyundai Motor had a great year when it comes to EV sales in general, and the Ioniq 5 is a big part of that story.

Compared to 2022, the edgy crossover/hatchback saw an increase of 47.6% in sales. At the end of 2023, the model had a 2.9% share of the EV segment in the U.S.

7. Rivian R1S

A big surprise in the sales data for last year is Rivian’s all-electric SUV, which managed to crack the top 10 just one year after its production started in 2022. In the first year of its existence, the R1S was sold in just 676 units but that changed dramatically for 2023 when the number increased to 24,783.

8. Ford F-150 Lightning

One of the first mass-produced all-electric pickup trucks to hit the market, the F-150 Lightning had a very good year in 2023. Compared to 2022, Ford’s pickup saw sales numbers increase by 54.7%, which is much better than the next best-selling electric pickup, the Rivian R1T (more on this further down on the list).

9. Tesla Model X

What was once the epitome of Tesla’s lineup is now an aging SUV and it shows in the sales numbers. Slowly but surely, the Model X is going down as more and more buyers are flocking to the much more affordable Model Y. Compared to 2022, the Tesla with so-called falcon wing doors had sales decrease by 11.9%.

10. BMW i4

After selling a little under 10,000 units in 2022, BMW’s all-electric sedan entered the top 10 list (albeit in the last spot) after upping its numbers by an impressive 134.6%. It’s a similar story on a brand level, where the automaker sold 191.3% more EVs last year than it did in 2022 in the United States, so it looks like it’s doing something right.

11. Kia EV6

An outlier for parent company Hyundai Motor, the sporty electric crossover that’s based on the same E-GMP platform as the Hyundai Ioniq 5 had a decrease in sales in 2023 compared to 2022, going down 7.9%. That said, momentum seems to be on the EV6’s side, with Q4 2023 sales being 39.1% higher than the same period in 2022, so we’ll have to wait and see what this year brings for the Korean EV.

12. Rivian R1T

Sales of the Ford F-150 competitor stalled last year as customers and Rivian seem to have shifted their attention to the R1S SUV. Compared to 2022, Rivian recorded just one (1) more sale of the R1T, according to Cox Automotive’s data, allowing Ford’s pickup to steam ahead in the rankings.

The numbers could have been a bit better if it weren’t for 2023’s fourth-quarter results which indicated a 48.6% decrease in sales compared to the same period in 2022.

13. BMW iX

Despite its divisive exterior design, the iX crossover had an amazing year in 2023 where sales figures are concerned. Compared to 2022, BMW sold 205.4% more iXs in the U.S.

14. Tesla Model S

The flagship electric sedan was the biggest loser in Tesla’s portfolio with 2023 sales decreasing by a hefty 65% compared to 2022. It’s a similar story to the Model X, but probably because Americans (and the world) show more interest in SUVs than sedans, the Model S saw a much sharper decline. The fact that the Model 3 is about half the price didn’t help either.

15. Mercedes-Benz EQS

Tesla’s loss with the Model S is Mercedes’ gain, it seems, with the flagship EQS electric sedan getting very close to its American competitor in 2023 after it recorded an almost 50% increase in sales compared to 2022.

16. Mercedes-Benz EQE

The slightly less expensive and smaller EQE sedan from Mercedes-Benz is poised to become the company’s best-selling EV, judging from last year’s numbers when it was sold in almost 15,000 units–a massive increase compared to the 384 units sold in 2022.

17. Nissan Ariya

The aging Leaf, which is still one of the most affordable new EVs in the United States, has been relegated to the bottom positions of the sales charts and the newer, more expensive Ariya crossover seems to be much more to the liking of the American public.

Considering it’s a newcomer in the U.S. market, Nissan’s SUV-like EV did well last year and it might do even better in 2024 (but that remains to be seen).

18. Hyundai Ioniq 6

One of the biggest rivals to the Tesla Model 3, Hyundai’s sleek Ioniq 6 sedan had a respectable year in terms of sales, considering it’s a new entry on the market, much like the Nissan Aryia.

19. Polestar 2

Another rival to the Tesla Model 3, the Polestar 2 saw a 31% increase in sales last year compared to 2022, which was just enough to give the Swedish-developed EV a 1% share of the segment.

Numbers were on the rise in the fourth quarter of 2023 when the Polestar 2 recorded a 20% increase in sales compared to the same period in 2022.

20. Audi Q4 e-tron

Last on this list is Audi’s most affordable EV offering which saw a big bump in sales compared to 2022 (206.7%) but it wasn’t enough to propel the crossover higher in the rankings.

FAQ

What is the top-selling EV in the United States?

The top-selling electric vehicle in the U.S. is the Tesla Model Y with 394,497 units sold in 2023, according to Cox Automotive data.

What is the top-selling electric pickup truck in the United States?

The top-selling electric pickup in the U.S. is the Ford F-150 Lightning with 24,165 units sold in 2023.

Best Selling EVs 2023

1. Tesla Model Y: 394,497 Units

2. Tesla Model 3: 220,910 Units

3. Chevrolet Bolt EV/EUV: 62,045 Units

4. Ford Mustang Mach-E: 40,771 Units

5. Volkswagen ID.4 37,789 Units

6. Hyundai Ioniq 5: 33,819 Units

7. Rivian R1S: 24,783 Units

8. Ford F-150 Lightning: 24,165 Units

9. Tesla Model X: 23,015 Units

10. BMW i4: 22,583 Units

11. Kia EV6: 18,897 Units

12. Rivian R1T: 17,727 Units

13. BMW iX: 17,301 Units

14. Tesla Model S: 16,466 Units

15. Mercedes-Benz EQS: 15,510 Units

16. Mercedes-Benz EQE: 14,895 Units

17. Nissan Aryia: 13,464 Units

18. Hyundai Ioniq 6: 12,999 Units

19. Polestar 2: 12,215 Units

20. Audi Q4 e-tron: 10,750 Units

More Sales Numbers

Since they're staring down the utterly monumental costs of pivoting their century-old industry to one that's centered around batteries and software, the automakers would appreciate it very much if their workforce didn't ask for more money and better benefits. And yet, the workers have something else in mind. And after a very successful year for the United Auto Workers union, the Alabama plant where Mercedes-Benz builds two EVs may be next to unionize. 

That kicks off today's post-CES Critical Materials roundup. Also on tap: more disappointing news from Electrify America and ChargePoint (is there any other kind from them?), and West Virginia Sen. Joe Manchin has the EV tax credits in his sights again. Here's what you need to know for the day ahead. 

30%: UAW To Mercedes: You're Next

Mercedes-Benz Plant Tuscaloosa opened in 1997 as the automaker's first-ever major factory outside Germany, and in the years since it has manufactured hundreds of sedans and SUVs destined for U.S. roads and for export as well. Today, it even builds the Mercedes EQS and EQE SUVs. And if the UAW has its way, it could be among the first "foreign" plants to unionize in the U.S. too.

Last night, the union announced that 30% of workers at the plant had signed union authorization cards—an important milestone in the organizing process. That allowed them to go public with the news, and at 70%, it will seek collective bargaining from Mercedes voluntarily or through an election. The local Tuscaloosa News has more on why some workers there are seeking to unionize, and you can hear directly from them in the video above too: 

Workers quoted in the statement announcing the union drive said wages had stagnated at the plant.

“Back in the day, you could get by on the pay here,” said Derrick Todd, an online quality team member who began working at the plant in 2005. “We topped out in two years. Now some people go through a temp agency for years before they even get on the pay scale. Year after year, the company says they’ve got record profits and sales, but our pay doesn’t keep up. It’s time to set things right. It’s time that we had our voice heard.”

Previous union drives there failed in 1999 and 2000. But that was a long time ago now; it was before the Great Recession, the bailouts, the slow decline of Big Three manufacturing jobs and an EV revolution that's led many to wonder just how many such jobs will be needed in the future. 

It was also before the UAW won historic victories in last year's strikes on the Big Three—strikes those automakers are still paying for. This UAW is led by President Shawn Fain, who's made clear he's coming after everybody: Tesla, Toyota, Nissan, and who knows: probably Fisker, Rivian, Aptera, Elio Motors, Gas Monkey Garage... everybody.

This UAW has a lot of momentum and probably a lot of workers who saw those gains on General Motors and Ford and now want in. (And again, it's notable that this is happening at a factory that builds EVs, one Mercedes surely wants to scale up in the coming years.) 

60%: Chargepoint, EA Have Disappointing Year All Around

With 2023 being a record year of sales for every brand that makes electric vehicles, you'd think two of the biggest charging providers would've stepped up in a major way. But apparently, you'd be quite wrong, which is rather disappointing. Our friends at BloombergNEF, the news wire's energy research arm, indicate that charger installations were actually down quite a bit in 2023 from the previous year: 

How is that possible, with so much federal money flowing that way? For one, it takes a while for states to distribute that money, and then it takes even longer for money to turn into chargers in the ground. The first Inflation Reduction Act-funded charging station didn't even go online until Dec. 13 last year. That's part of the problem.

The other issue is that investors are getting fed up with the charging providers themselves, which are rampantly unprofitable. And in the case of ChargePoint—where property owners order the installations—businesses held off on such investments out of lingering fear of that recession that's never happened, Bloomberg reports. 

There was one big exception, of course, emphasis mine here:

ChargePoint Holdings Inc. and Electrify America grew slightly in 2023, adding just 410 and 588 fast chargers, respectively, the report noted. EVgo Inc. added 850 fast chargers compared with Tesla Inc., which installed 6,000. The BNEF figures are based on the number of fast-charging connectors.

It's no wonder why so many automakers switched to Tesla's plug and opted into its Supercharger network. That will help with some of these issues, but it may also turn Tesla into a charging monopoly someday. 

90%: Manchin To Grill Energy And Treasury Departments On EV Tax Credits

Speaking of the Inflation Reduction Act, the conservative-leaning Democratic West Virginia senator who is responsible for the bill's name is holding a hearing today targeting how the Biden White House has implemented the EV tax credits. 

Here's what to expect from a Senate Energy and Natural Resources Committee hearing today, held by Sen. Joe Manchin, via E&E Daily: 

Adewale Adeyemo, the Treasury Department's deputy secretary, and David Turk, deputy secretary at the Department of Energy, will testify during a hearing aimed at examining the government’s handling of electric vehicle incentives and broader supply chain concerns.

No Inflation Reduction Act issue has been more contentious for the West Virginia Democratic senator than EV tax credits. Manchin, one of the law’s authors, has repeatedly accused the president of sidestepping mineral sourcing requirements.

“It is horrific that the Administration continues to ignore the purpose of the law, which is to bring manufacturing back to America and ensure we have reliable and secure supply chains,” Manchin said last year.

Even though the EV tax credits are more restrictive than ever this year, Manchin reportedly does not believe it's good enough to fend of China's dominance of the battery supply chain; the news wire says that Manchin believes automakers should be ineligible if “any of the applicable critical minerals contained in the battery” come from China or other foreign adversaries. That's a tough act to pull off, given how nascent America's battery production operation is. 

According to prepared remarks, Adeyemo is expected to counter thusly:

As you know, the People’s Republic of China (China) has, for over a decade, pursued non- market policies and practices to further state-led industrial targeting and channeled enormous amounts of financial support into developing its EV sector, seeking to help Chinese firms establish a dominant position in the global EV market. China’s targeted government intervention and investments in clean energy totaled over $500 billion in 2022 alone, nearly four times the investment in the U.S. and more than 1.5 times the U.S. and European Union combined. Today, China produces over half the world’s EVs and an even larger share of EV batteries.

[...] While China is ahead of us on EVs today, by enacting the IRA and [Infrastructure Investment and Jobs Act], you have given the United States the ability to not only compete but to lead an effort to build an alternative global supply chain. Of course, because our domestic system is different from China’s, our path to building a resilient domestic EV production base is also different. Instead of directing industry, the IRA and IIJA provide incentives that support the private sector in building the EV ecosystem, from manufacturing and procurement to adoption and charging. Importantly, these incentives foster competition.

It's unclear what Manchin wants out of today's hearing. He will not stand for re-election in 2024, and while he's been tipped as a possible third-party presidential candidate, that feels quite unlikely. More on this as it develops. 

100%: Does The UAW Have A Chance At Organizing Foreign Plants Now?

And what does that mean on the cusp of the electric vehicle transformation?

Contact the author: patrick.george@insideevs.com

More EV News

At present, most electric bicycles still make use of a physical connection between the rider's legs and the rear wheel being driven. Either via chain, or more recently gaining popularity, via belt, e-bike motors retain a semblance of real biking, as the rider is either required to pedal for the motor to run, or has the option of pedaling when they choose to do so.

With that said, technology has advanced such that manufacturers seem to be making things needlessly complicated. Case in point: digital drives. We’ve talked about so-called digital drives in the past, and quite a few manufacturers have been pushing this tech. A good example of this is the Rover 45, a joint venture between bike specialist Look and active mobility company Cixi. In essence, the Rover 45 is an e-bike with pedals. However, the pedals have no physical connection to the driven wheel – no chain or belt.

Instead, the way the Rover 45 works is through a bunch of sensors and wires. You crank away at the pedals, and the controller interprets each pedal stroke and sends a signal to the rear-mounted motor to turn the rear wheel. This also means that you can crank away at the pedals while at a stop or while coasting, and charge up the battery in the process.

Look and Cixi are among a good number of e-bike specialists that are pushing digital drive technology forward. Pendix, for instance, is another brand that we’ve talked about in the past, and apart from making integrated motors and gearboxes, also dabbles in digital drive systems. In the case of the Rover 45, it’s clearly a cut above your run-of-the-mill e-bike in terms of performance. In Europe, e-bikes are restricted to 250 watts and 15 miles an hour. The Rover 45 can hit a top speed of 28 miles per hour, and as such is classified as a Speed Pedelec in parts of Europe.

Although still a concept at the moment, the Rover 45 boasts tech that could be beneficial for some e-bike types. The unique configuration of this motor is clearly complicated, and defies the simple nature of the good old bicycle. However, it isn’t without practical applications. For instance, specialized e-bikes like heavy-duty cargo haulers could certainly benefit from this technology. Their long frames and extended wheelbases sometimes mean that using a chain or belt is impractical, and eliminating external moving parts could simplify the design of bikes like these.

More Fun On Two Wheels:

Source: E-Bike News, Look x Cixi

Remember Mullen? It’s a California-based company that tried (and failed) to sell Chinese-made EVs in the United States a couple of years ago. It also bought a controlling stake in Bollinger Motors–a marque that was working on an all-electric off-roader–and owns the ex-General Motors factory where the Hummer H2 used to be built.

If none of this tickles your memory, you’re not alone, rest assured. But maybe an extreme SUV with an outlandish body kit will help you remember the Mullen name in the future. Enter the Mullen Five RS, an all-electric high-performance SUV that was revealed at CES 2024 as the company’s most powerful model yet. That’s if it will ever go into production, seeing how none of the company’s past passenger car projects went that far.

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Mullen's latest creation is a hardcore electric SUV

Mullen Automotive revealed a high-performance version of its upcoming Five electric SUV dubbed the Five RS. Its targeted power output is 1,000 hp and the 0-60 mph time is expected to be just 2 seconds.

Mullen says it expects to launch the Five RS sometime in 2025 ahead of the previously unveiled non-RS flavored Five SUV with a hefty list of impressive specs and a price tag to match.

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The company behind the outlandish EV is targeting an output of over 1,000 horsepower and more than 850 pound-feet of torque for the car’s dual-motor all-wheel drive setup that also uses a dual-speed transmission, much like the Porsche Taycan.

With this much grunt, Mullen estimates that the 5,070-pound SUV will sprint from zero to 60 miles per hour in less than 2 seconds (that’s 1.2 seconds quicker than the toned-down version) and on to a top speed of over 200 mph.

But with great power (and quite a lot of weight), the braking system needs to be pretty beefy, too. Mullen says the Five RS has six-piston Brembo front calipers that grab onto 15.7-inch two-piece carbon-ceramic rotors, while the rear has a set of four-piston calipers and 14.6-inch rotors. All of this can stop the SUV from 62 mph (100 kilometers per hour) in 110 feet.

A 100-kilowatt-hour battery is said to provide energy to the two electric motors. The company didn’t say if this is the gross or net capacity, but it did mention that it can enable a driving range of 300 miles (25 miles fewer than the regular Five) and that it can be recharged from zero to 80 percent state of charge (SoC) in about 20 minutes. That said, the charging speed in kilowatts wasn’t disclosed.

Four rather sporty individual seats offer what seems to be a supportive ride to the driver and three passengers inside, while the infotainment system includes things like Apple CarPlay, Android Auto, and an AI-based voice assistant.

Two large displays and a smaller third screen for the front passenger occupy most of the dashboard. There’s also a standard panoramic roof on U.S.-bound models, a premium sound system, and customizable ambient lighting.

Mullen Five RS interior

On the practicality front, the Mullen Five RS has a cargo volume of 26 cubic feet with the rear seats in their normal position. With the rear seats folded, that number increases to 62 cu ft.

The exterior features a racing-inspired body kit that includes a rear spoiler and a set of 21-inch wheels on standard tires as standard. Those who like huge wheels can also opt for an optional set of 22-inchers that are either 9.5 or 11 inches wide.

As for pricing, there’s no official figure yet, but as Car and Driver reported, the company’s CEO mentioned during the press conference that the Five RS will start at around $295,000, while a carbon-fiber edition will cost roughly $385,000. Ouch.

Tesla has just introduced the significantly updated 2024 Tesla Model 3 in the U.S., which initially was launched in China and Europe (in late 2023).

Since we already know about most of the changes with the "Highland" edition, in today's post, we will focus on the core pricing and spec details in comparison to the retired 2023 model year Model 3.

Pricing

The 2024 Tesla Model 3 is currently available only in two versions, the entry-level rear-wheel drive (RWD) and dual-motor Long Range all-wheel drive (AWD).

The top-of-the-line Performance version in Highland's lineup has not launched yet, which means that since the old version is retired, there is no Performance version available now. Let's recall that the Performance version was previously the only Model 3 that qualified for the full $7,500 federal tax credit in 2024.

Prices of the Model 3 RWD and Long Range AWD remain at the previous level, which means respectively $38,990 and $45,990 (plus $1,640 in obligatory fees).

An important note is that the $7,500 federal tax credit for the 2024 Model 3 (RWD and LR AWD) is available through leasing. Tesla has already factored the incentive into its online leasing rate calculator, explaining that is "Includes $7,500 EV lease incentive distributed across lease term."

Prices

* Tesla adds a destination fee of $1,390 and an order of $250 to all its models for an extra $1,640.

The new default paint color is Stealth Grey. The other ones are Pearl White Multi-Coat ($1,000), Deep Blue Metallic ($1,000), Solid Black ($1,500), and the new Ultra Red ($2,000).

Standard wheels are 18-inch Photon Wheels with All-Season Tires. For $1,500 more, Tesla offers 19-inch Nova Wheels with All-Season Tires.

A black interior is the default, while the White version costs $1,000. Tesla also offers Enhanced Autopilot for $6,000 (Navigate on Autopilot, Auto Lane Change, Autopark, Summon, Smart Summon) or Full Self-Driving Capability (Beta with active driver supervision required) for $12,000.

EPA Range

In terms of the EPA Combined range ratings, there are some interesting changes. The entry-level Tesla Model 3 RWD with standard 18-inch Photon Wheels gets the same EPA-estimated range of 272 miles, Tesla says.

The Long Range AWD version, with the same 18-inch wheels, is rated at 341 miles, which means a slight increase of 8 miles or 2.4% from the 333 miles listed previously.

However, when it comes to the optional 19-inch Nova Wheels, both versions are getting a lower range than previously. The RWD version is the most affected with a 19-mile (or 7.1%) drop to 248 miles (estimated by Tesla). That's a warning sign because we know that Tesla's CEO Elon Musk does not like sub-250-mile range EVs.

The Long Range AWD with 19-inch wheels has 305 miles of range, according to Tesla's estimates, which is 10 miles or over 3% less than the previous model.

2024 Tesla Model 3 (Highland) range (vs. 2023MY):

In other words, the 2024 Tesla Model 3 Highland brings improvement only on the AWD version with 18-inch wheels. A selection of 19-inch wheels will translate into a lower range, as compared to the 2023 model year Model 3.

Other changes

Among other changes, we have noted that the top speed of the new Tesla Model 3 is 125 mph, compared to 140-145 mph previously. Acceleration times remain the same at 5.8 and 4.2 seconds (0-60 mph).

In terms of fast charging, the peak power is 170 kilowatts on the RWD version (small battery pack) and 250 kilowatts on the Long Range AWD version (large battery pack), just like previously. However, the company's website says now that the car (or at least one of its versions) should be able to replenish up to 175 miles of range in 15 minutes (in optimum conditions). Previously it was up to 147 miles, we believe.

Interestingly, Tesla does not list the onboard charger power or 0-100% state-of-charge charging time.

The weight of the new Tesla Model 3 RWD is 3,891 lbs (29 lbs more than before). The Long Range AWD's weight is 4,030 lbs (4 lbs less than before).

Basic specs

* EPA-estimated range according to Tesla (19-inch wheels range according to Tesla estimates); acceleration including rollout

A lot of general changes between the outgoing and the new Tesla Model 3 were listed by Tesla on X:

One of the best bullet point lists with the changes was also prepared by Sawyer Merritt:

See also

There's one automaker that stands in stark contrast to all of the doom-filled headlines about uneven electric vehicle sales in 2023, and that is Korea's Hyundai Motor Group. While last year saw record EV sales from just about every brand that bothers to sell them, it also saw uneven purchasing, questions over demand and continued issues with software and public charging. But the data from last year increasingly shows that Hyundai's approach—building some of the world's best EVs at fairly competitive price points—is paying off handsomely, and that trend seems only poised to accelerate in 2024.

A new report out today from BloombergNEF, the news wire's energy research arm, indicates that based on preliminary sales data, Hyundai and Kia together made up more than 8% of the new EVs sold in the U.S. last year. (BloombergNEF lumped sales of the Genesis luxury models in with Hyundai.)

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2023's narrative on EV sales

Dealers, executives and even some fed-up owners helped feed a narrative that EV sales were faltering last year, even as a number of brands reported record sales numbers. But Hyundai, Kia and Genesis seem to especially be bright spots in the electric world. 

This means that not only did Hyundai Motor Group outpace General Motors and Ford at EV sales, but the Korean company is now the number two automaker in the U.S. behind Tesla. (As a single, standalone brand, however, Ford is still ahead of the Koreans.) 

That's huge, and it's proof that Hyundai's all-in approach to EVs is working. Moreover, it's proof that some of the big gambles Hyundai has made in recent years—on design, on tech and features Americans want—seem to have been the right moves. 

"Hyundai’s EVs stand out thanks to their impressive charging power and efficiency," BloombergNEF EV analyst Corey Cantor wrote. "The Ioniq 5 can utilize 350-kilowatt chargers, while the Ioniq 6 is one of the most efficient EV sedans currently on the market, with an Environmental Protection Agency–rated efficiency of 4.6 miles per kilowatt-hour. Kia’s electric cars have also had a strong year, with the EV9, the new three-row SUV launched in December, hitting over 1,000 units sold in just one month."

All of this is equally impressive considering almost none of Hyundai Motor Group's EVs qualified for any tax credits last year, unless they were leased; the automaker did see a great deal of sales success there, however. BloombergNEF indicates that in November, 44% of Ioniq 5 sales were leases, about double what the brand normally does. 

InsideEVs will issue our own official sales reports on Hyundai, Kia and Genesis EV sales in the coming weeks when final reports are in, but BloombergNEF's findings track with much of our own data throughout 2023. And it tracks with my own predictions for 2024: that the Korean automaker finally deserves to be considered on par with Tesla and BYD as the emerging global power players in this space. What's more, the Kia EV9 three-row crossover is barely on sale yet, but early reviews and trends indicate it's destined to be another hit. 

But as Cantor pointed out in an email to InsideEVs, some questions remain. While Hyundai Motor Group as a whole is handsomely profitable (and sales of all of its cars have grown exponentially), it's unclear how much profit—if any—it is making from its EVs. It's also unclear if these sales milestones track with any of Hyundai's internal targets. 

Still, it's further proof that if anyone isn't paying attention to what Hyundai is doing right now, that needs to change and soon.

Contact the author: patrick.george@insideevs.com

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Honda CEO Toshihiro Mibe wants to make an electric car for the masses—but he believes true affordability won’t be possible without a paradigm-shifting leap in EV tech. 

“If we want to create a car that is $30,000, I think we need something that is breakthrough,” Mibe told InsideEVs during a roundtable interview at CES on Tuesday, through a translator. “Of course I think we need a small car, an EV, in the coming future. We are trying to accelerate our research to that end.”

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America Needs Cheap EVs

The steep entry price for most of today's electric options is keeping buyers hooked on gasoline. Expensive lithium-ion batteries are largely to blame. 

Honda would like to roll out a $30,000 EV for the U.S. market by “the very late 2020s,” said Shinji Aoyama, the company’s global executive vice president. 

The nagging problem there lies in the high cost of today’s lithium-ion batteries, Mibe said. The only way to make an EV affordable at present is to equip it with fewer batteries, thus reducing its range, he said. He questions what sort of value of that kind of vehicle would offer. 

“When you talk about an affordable EV, it’s very difficult to have a good business,” he said. 

Solid-state batteries, a technology that’s still experimental but that Honda and other companies are looking to bring to market, could be the breakthrough that paves the way for a $30,000 car, Mibe said. That new chemistry could slash battery costs while improving vehicle range and reducing the potential for fires, he said. 

“If we can do a good job with development, the benefit will be huge,” he said. 

Honda on Tuesday announced a new line of battery-powered models coming in 2026 that will rely on brand-new, in-house EV technology, and revealed two concepts that preview those future cars. The company aims to introduce solid-state batteries to that lineup by the late 2020s; it has not yet made announcements around projected costs. 

The high cost of today’s battery-powered models is among the most significant barriers to widespread adoption of cleaner vehicles, alongside worries about charging speed and availability. Although prices have declined over the years, there’s still a distinct lack of accessible EVs in the U.S. This is despite the fact that people clearly want more affordable EVs; Tesla's two most lowest-priced models, especially after tax incentives, saw record sales globally in 2023. 

The $26,500 Chevrolet Bolt EV is a bright spot, but it’s taking a hiatus in 2024. Tesla, by far the dominant player in America's electric market, has said it's working on a $25,000 car, but that project hasn't seen the light of day. American EV buyers shelled out some $52,000 on average for their cars in November, more than the going price for a combustion vehicle.

Up until late last year, Honda had been working with General Motors on an assortment of low-cost electric SUVs, the first of which were set to hit the market in 2027. In October, the automakers canceled the partnership, with Honda saying at the time that cheap EVs were a “difficult” business to make viable.

Contact the author: tim.levin@insideevs.com

More News Out Of CES

California-based e-bike specialist Vanpowers is starting 2024 strong with the launch of not one, but two new electric bicycles. Using the ongoing CES 2024 as a launchpad for its new models, the brand is making a noticeable departure from its utility-focused commuters and trekkers to more performance-oriented models targeted towards cycling enthusiasts.

The two bikes consist of an e-gravel and e-MTB duo, both of which packing impressive technology and performance, as well as tried and tested components from some of the industry’s most trusted names. Let’s dive right in and see what Vanpowers has in store for e-bikers in 2024.

Vanpowers UrbanCross

As you’re probably able to guess by the name, the UrbanCross is Vanpower’s entry into the massively popular e-gravel bike market. It follows the formula when it comes to lightweight gravel e-bikes in that it features a streamlined frame complete with carbon components. The handlebars and fork are made of carbon, while the aluminum frame is laden with mounting points for you to install all sorts of accessories. Vanpowers has also thrown in a variety of tech features such as a Bluetooth-connected color display, and anti-theft features such as geofencing and 4G and GPS tracking.

When it comes to performance, Vanpowers has fitted the UrbanCross with a compact rear hub motor with a nominal power output of 250 watts. The battery, housed within the frame’s downtube, promises a single-charge range of up to 60 miles. Powertrain aside, the UrbanCross is equipped with Shimano GRX components and Tektro hydraulic brakes for reliable stopping. It rolls on 700x40c CST gravel tires, and comes standard with LED lighting for after-dark adventures.

More Fun On Two Wheels:

Vanpowers GrandTeton

The GrandTeton is Vanpowers take on an all-terrain, all-weather, all-rounder, and is a rugged electric mountain bike with a hardtail frame. Interestingly, Vanpower has opted for a more dated 26-inch wheel setup, but makes up for this with chunky, all-terrain tires. It also gets an air-suspension front fork with a lockout, as well as a dropper seatpost for quick seat height adjustments depending on the terrain. The GrandTeton is offered in two versions – Ultra and Pro, with either a 500W or 750W mid-drive Bafang motor.

Similar to the UrbanCross, the GrandTeton makes use of a Shimano drivetrain and Tektro hydraulic brakes, and equips a variety of smart features such as a color display, built-in lights, and mobile phone connectivity. Across the board, both the UrbanCross and GrandTeton make use of a torque sensor to deliver the most natural-feeling pedal assistance possible.

As of this writing, Vanpowers has yet to announce pricing and availability for both models. However, if their current lineup of bikes is anything to go by, chances are the UrbanCross and GrandTeton will offer some seriously attractive bang for your buck.

Source: New Atlas, Vanpowers

In November, global registrations of plug-in electric cars increased to a new monthly record level, beating the previous one set in September.

According to EV-Volumes data, shared by researcher Jose Pontes, 1,385,104 new passenger plug-in electric cars were registered globally in November (about 31% more than a year ago), compared to 1,291,000 in September. The market share amounted to 19%.

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Global EV sales expand

More than 12 million plug-in electric cars were registered around the world in 2023 through the end of November, which was more than in all of 2022 (10 million units). Once December's data is announced, the total volume might reach 13.5 million units.

All-electric car registrations increased by 25% year-over-year to a new record of 952,598, taking about 13% of the global passenger car market.

Meanwhile, plug-in hybrid car registrations increased by 40% (mostly thanks to China), reaching about 432,500 units and roughly 6% of the market.

Now, we are waiting only for the December data and probably another record, north of 1.4 million units.

Plug-in car registrations for the month:

Global Plug-In Electric Car Sales – November 2023

In the first 11 months of the year, more than 12.1 million plug-in electric cars have been registered around the world, which is more than 16% of the total volume, we estimate.

Plug-in car registrations January-November:

* estimated

For reference, in 2022, more than 10 million new passenger plug-in electric cars were registered globally for the very first time. This result will be significantly improved upon in 2023, to more than 13 million units.

Model rank

The Tesla Model Y remained the world's best-selling plug-in model in November with a massive result of over 115,000 new registrations—far above other models. However, the year-over-year growth of the Model Y has slowed down, amounting to only 13% in November.

Then we can see the BYD Song Plus family (when counting BEVs and PHEVs together) with over 63,000 units and a big comeback of the Tesla Model 3 with 54,327 units (up 15% year-over-year). Fourth was the tiny BYD Seagull (44,603), ahead of several other BYD models.

Top 10 for the month:

* BEV and PHEV versions of the same models were counted together in the source.

After the first 11 months of the year, the Tesla Model Y exceeded one million registrations, while the BYD Song plug-ins almost noted 560,000 units. The Tesla Model 3 is third best, at over 472,000 registrations.

Brand rank

In terms of brands, BYD was the number one in the general plug-in car segment for another month with over 288,000 new registrations (more than half of those were all-electric cars).

Tesla's new registrations in November exceeded 174,000, while the other brands were, as usual, far behind. The SAIC-GM-Wuling joint venture noted 55,350 and BMW with 50,666 was ahead of Volkswagen (47,116).

Top 10 for the month:

After the first 11 months of 2023, the step change between BYD (2.55 million) and Tesla (over 1.6 million) became even steeper again. Similarly, the rest of the industry is further and further behind.

More sales reports

Source: Jose Pontes (EV Volumes data) - CleanTechnica

Money talks, that’s why most Americans who were surveyed by Deloitte said that the primary reason for switching from a gasoline-powered car to an electric vehicle is the latter’s lower operating costs.

The survey, which had 1,003 respondents in the United States, concluded that 66% of those who answered Deloitte’s questions ranked lower fuel costs as their top reason for getting an EV, while 53% noted environmental concerns as their primary motivator, writes Automotive News.

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Low operating costs lure people away from ICE and toward EVs

A Deloitte survey found that most Americans who switched from a gasoline-powered vehicle to an electric car did so because of the latter's lower operating costs.

That said, in the context of gasoline prices dropping 10% last year (with more cuts expected in 2024), consumer intent to buy an EV fell by 1% compared to the previous year, while intent to purchase an internal combustion engine car went up by 9% in the same period.

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In other words, if gasoline prices start to increase in the U.S.–something that’s expected to happen in a few years, according to Deloitte–the EV adoption rate could get a bump in the right direction.

"Where fuel prices are going is going to be hugely important to the level of [EV] adoption that we see over time," said Ryan Robinson, automotive research leader at Deloitte. "As we're seeing fuel prices start to moderate, it does place downward pressure on overall momentum towards EVs," he added.

Sticking to the money problem, the same survey found that the purchase price is the most important factor for U.S. buyers when determining their next car purchase, with most expecting to pay less than $50,000 for their next vehicle.

Tesla Model 3 and Model Y

This goes hand in hand with other surveys and studies that found the high entry price of EVs to be the biggest barrier to a higher adoption rate in the United States. Putting two and two together also gives some context to why Tesla’s most affordable vehicles–the Model 3 and Model Y–are so successful.

The Model 3 starts from less than $40,000 and the Model Y goes from $43,990, but that’s just part of the picture because there are other manufacturers on the market that offer similar deals. The base Volkswagen ID.4, for instance, starts at $38,995, but its sales numbers pale in comparison.

For context, Tesla sold a little over 650,000 EVs last year in the United States, according to Cox Automotive, while Volkswagen sold just over 630,000 cars (EVs, hybrids, and ICE cars combined). On the EV front alone, VW sold fewer than 40,000 ID.4 crossovers Stateside. although the numbers are increasing.

2023 Volkswagen ID.4

So pricing alone isn’t what kept VW and other players from selling more EVs. Range, availability, and charging concerns are also part of the mix, with Deloitte’s survey pointing out that the charging experience is an important factor when consumers decide to buy an electric car.

"It's not just the time that the vehicle is plugged in, but it's the time that it takes to find a charger or find one that works, waiting to access that charger, and the time it takes to charge the vehicle itself," Robinson said.

What went through your mind when you decided to switch to an EV? Let us know in the comments below.

A CES without flying taxis would be like one without rampant COVID-19 infections: just not the same. Fortunately, this year's show delivered on that first front (hopefully not the second, however) and it proved some big names are still involved in making that crazy idea a reality someday. 

Welcome back to Critical Materials, our morning roundup of the most important industry news in the automotive tech space. We hope you've enjoyed our CES coverage so far; more to come this week and next, including interviews with executives and more previews of the software-driven future from Mercedes-Benz and more.

Until then, today's roundup also covers the latest tactical switch at Fisker, and why Google's Waymo is "the tortoise beating Tesla's hare." Let's dive in.

30%: Flying Car FOMO, Or A Viable Bet On The Future?

Sometimes, I wonder how many big tech investments are driven by pure FOMO. In the car world, it applies to a great many things: new battery technologies, autonomous cars, even novel ways to deliver content from the Spider-man franchise into your vehicle. It's the idea that "If this becomes a thing and we're not on it, we're screwed." It makes sense when almost every car company wants to pivot to becoming a "mobility solutions provider," and nobody can really define what that means.

There are few better examples of this than the flying car. One of my former colleagues at Gizmodo used to say that aerial taxis were "just two years away," because they were always just two years away throughout most of the 2010s. But that trend hasn't gone anywhere, and CES 2024 proved that we've moved beyond the crackpot startup stage to seeing real investments from serious players. 

Case in point: Hyundai's CES debut from its air mobility subsidiary, Supernal. The two companies unveiled an electric vertical take-off and landing (VTOL) aircraft at CES this week, and on many levels, this effort is playing the long game. Here's Automotive News to explain:

While the SA-2 often draws comparisons to aircraft as traditional as helicopters and as fanciful as flying cars, this is something that's decidedly different.

The SA-2 is built for one human pilot and four passengers. It relies on eight tilt-rotors to achieve flight — the front four tilt vertically for takeoff and all are horizontally aligned during cruise flight.

They're designed in a way that ensure noise is kept to a minimum. On takeoff, they produce about 65 decibels of sound, said Supernal chief technology officer Ben Diachun. That's as loud as a modern dishwasher, he said.

The SA-2 can travel at speeds of up to 120 miles per hour. Initial trips are expected in the 25-to-40-mile range.

Yes, battery power and not hydrogen—which Hyundai is also heavily investing in. And its service is actually expected to begin in 2028. So not two years away, but four. What's especially interesting is that Hyundai's not alone here. At least two other flush-with-cash automakers who don't want to lose out on "the future" are making similarly large investments: 

Hyundai is not the only automaker eying this possibility. Joby Aviation runs a pilot production manufacturing line at its Marina, Calif., headquarters that harnesses the expertise of Toyota Motor Corp., its largest investor. Joby intends to open an assembly facility in Dayton, Ohio, starting in 2025.

Archer Aviation, another eVTOL frontrunner, inked a strategic manufacturing partnership with Stellantis. Construction is underway on a high-volume factory in Covington, Ga. Their initial manufacturing plans call for production of 650 aircraft per year with room to eventually expand to as many as 2,300 per year.

This, even as regulations remain extremely unclear around these vehicles; "like playing football while writing the rules at the same time," one executive said. 

Basically, if flying taxis take off—figuratively and also literally—and become A Thing someday, these companies want to plant their flags now so they don't miss out later. Will these dreams become a reality? I guess we'll find out in two years. Or four.

60%: Fisker, Struggling With Delivery Issues, Pivots To Dealers

We've been a bit late on this news thanks to the fog of war that is CES, but there's a lot going on at Fisker these days. 

The nascent electric car startup just wrapped a big year with the debut of the Ocean crossover, which is meant to really establish the brand as a contender in an increasingly crowded space, plus even more planned debuts that look quite exciting. But 2023 was also marked with a lot of the usual startup woes: software issues, getting cars actually delivered and keeping cash in the bank, among other things. 

Deliveries were a particular problem for Fisker. I think it's fair to say the company lacked the early all-hands-on-deck hype that got cars delivered to customers, including with the help of volunteers. 

Now, Fisker is pivoting to the dealership model. And it aims to sign on more than 50 dealers, CEO Henrik Fisker told Automotive News at CES: 

The plan to sell through dealers is a complete reversal of the Fisker's original direct sales strategy. The company has struggled to deliver vehicles ever since sales started last year.

"I discovered that in this current situation, with high interest rates, [expensive] real estate, and getting people trained is much more difficult. I think we just went that route because everyone does when you are a startup," Fisker said. "I went to my accounting department and asked what is the cost of selling a car? We decided we would rather give that money to a dealer so that we could expand faster."

Fisker said the decision to offer dealers franchises is based in part on how fast the company can expand with dealers or without, and where the customer base is for EV adopters and Fisker's current customers.

"We are looking for multibrand dealer groups that are owned by someone who can make quick decisions," Fisker said, describing the type of dealers he is looking for.

The dealers don't get a lot of love in the EV world, and that rep is often deserved, but this model does bring its advantages for an early company—not just with sales but service, too. Will this help put Fisker on more stable ground? We'll see how many sign on. 

90%: Waymo, The 'Grandma' Of Robotaxis, Is Holding It Down

Google's Waymo may be the ultimate proof that you don't always have to move fast and break things in the tech world. As Bloomberg's Jessica Karl writes today, it could be the next verb in your life—like how you'd "take an Uber" or "Google something." Food for thought: 

As it stands, Waymo operates in only two cities — Phoenix and San Francisco. But it’s expanding into Los Angeles and Austin very soon. In a few years, who knows what other cities will allow Waymo to compete with the likes of Uber and Lyft. Will people prefer the comfortable silence of a driverless car over the awkward chitchat you endure with other rideshare businesses? Maybe our jargon will be the first sign of change.

[...] Cruise — the autonomous-driving arm of General Motors — was actually the first to roll out self-driving cars without a safety driver. In 2020, its cars hit the streets of San Francisco. But three years later, the company’s testing permit was revoked after authorities determined it withheld footage of an accident that left a woman critically injured. Dave says “the newly uncovered video showed the Cruise car dragged the woman 20 feet at 7 miles an hour before coming to a stop — on top of her.” In contrast, Waymo’s robocars have traveled 7.1 million miles and have caused less than a handful of minor injuries.

It sounds like the company’s careful approach is paying off. If we want to go driverless, Waymoing with grandma is the only way forward.

It also lumps Waymo in with Tesla in the self-driving race. I tend to draw a line between the consumer car companies and the robotaxi tech companies, but Tesla's bet the farm on full self-driving to the point where CEO Elon Musk didn't want to put out an entry-level car if it had a steering wheel and pedals. So maybe Google's onto something here.

My take is that Waymo is in a good position to wait this out and play its own long game, but the lack of competition in this space and the potential for one company to own it all may not be a good thing for consumers.

100%: What's Your Read On Flying Cars?

That's a wide-ranging term, after all. Are these the future, or destined to always be a few years away? 

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