American automobile manufacturer Ford Motor hits the goal of becoming the second best-selling Electric vehicle in the U.S. after recording an increase in sales.
Ford narrowly surpassed Hyundai/Kai to claim the second position of EV manufacturers in the U.S. The company recorded a 7.4% rise in its shares from 5.7% a year ago.
It also reported sales of 53,752 all-electric vehicles in the U.S. through November 2022.
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Speaking on the increase in demand for its Electric vehicles, Ford CEO Jim Farley said, “The demand is so much higher than we expected. It’s a really new experience for this big company, trying to be agile. We had to approach it very differently than we’ve done capacity planning.”
However, there are speculations that Ford was able to surpass South Korean company Hyundai after the automaker lost incentives that gave buyers of its EVs tax credits of up to $7,500 under the Biden administration’s Inflation Reduction Act.
Despite its rise to the second position of EV manufacturers in the U.S., several analysts have disclosed that the gap between Ford and Tesla which occupies the first position is wide.
Ford’s recent position is no doubt giving the company a feeling of ecstasy after it disclosed plans a year ago to become the world’s second-largest electric vehicle manufacturer in the world.
The company also disclosed plans to increase its production capacity of electric vehicles to 600,000 units by 2023.
Ford is clearly not resting on its oars despite smashing its goal, as it plans to top Tesla in EV sales by Mid-Decade. Ford estimates that it will build 2 million electric vehicles worldwide by 2026.
Tesla on the other hand still dominates the EV sector in the U.S with a 65 per cent market share of new EV sales.
However, a recent report from S&P Global reveals that Tesla’s market dominance in the US electric vehicle sector is gradually waning, down from 79 percent in 2020 and could drop below 20 percent by 2025.
Tesla’s waning dominance is due to a slow rollout of EVs in a more accessible price range below $50,000 where the company currently does not compete. As newer and more affordable options arrive Tesla’s share of the overall market is set to dive.
A research author John Murphy believes that Tesla will lose its dominant position in the EV market because it is not expanding its portfolio quickly enough to keep up with both legacy automakers and new startups that are ramping up their EV lineups.
The analyst says “Tesla CEO Elon Musk has had a vacuum for the last 10 years in which to operate where there hasn’t been much competition, but “that vacuum is now being filled in a massive way over the next four years by very good product.”
Few analysts have predicted that both Ford And GM Will Overtake Tesla By 2025. Will the prediction be successful, or will Tesla continue to dominate the EV sector? time will tell.