Electric vehicle sales hit 7.9% of US market as Volvo, Mercedes, and Hyundai post sizable gains
EV sales surged past 300,000 for the first time in the third quarter, a nearly 50% increase over last year. As automakers like Volvo, Mercedes-Benz, Nissan, and Hyundai ramp production, Tesla’s market share is slipping.
The latest quarterly EV sales estimates from Cox Automotive dropped Thursday, showing a record 313,086 electric cars sold from July to September. EV sales have now expanded for 13 straight quarters.
Electric vehicles accounted for 7.9% of total US auto sales in Q3, up from 6.1% a year ago and 7.2% in Q2.
EV sales surged 49.8% compared to last year, increasing 5% from the 298,039 sold in Q2. The data shows most automakers have picked up the pace significantly over the past year.
Volvo, Nissan, Mercedes-Benz, and Hyundai posted notable progress, with sales growing over 200%. The growth comes as new electric models hit the market. Over the past year, 14 new EVs have been introduced.
Higher inventory, more availability, and lower prices have also contributed to the growth. According to Cox Automotive, EV prices are down 22% over the last year, with a $50,683 average price paid in September.
The price cuts are led by Tesla, with prices down around 25% from last year. Last week, the Tesla Model 3 hit its lowest starting price ever at $38,880.
Tesla’s market share shrinks as US EV sales pick up
Although Tesla continues its dominant expansion, delivering over 435,000 cars in Q3 (+19.5% YOY versus industry average of 16.3%), the EV leader’s market share is slipping.
Tesla’s market share hit 50% in the third quarter, down from 62% in Q1 and its lowest so far. The highly anticipated Cybertruck could help turn things around, but the competition is still picking up.
Since Tesla pioneered the industry, losing market share as other automakers ramp up is inevitable. The gap is still massive at 50% of the market. (Check out these two charts for proof.)
Rivian delivered 15,564 electric vehicles in the quarter, up 126% from last year. GM began delivering the Chevy Silverado EV (although they only delivered 18 units), and Ford expects F-150 Lightning production to pick up by the end of the year.
Meanwhile, overseas automakers are beginning to make their presence known. Mercedes-Benz EV sales climbed 284% to reach 10,423 in Q3.
Although Ford (20,962) and GM (20,092) sold more electric models in the quarter, Mercedes topped the American automakers as a percent of total sales. Mercedes’s EV sales in the US reached nearly 15%, while GM and Ford are around 3% to 4%.
| Q3 2023 sales | Q3 2022 | YOY | Q3 Market Share | |
| Audi | 7,538 | 3,891 | 93.7% | 2.4% |
| BMW | 13,079 | 4,365 | 199.6% | 4.2% |
| BrightDrop | 35 | – | 0% | 0% |
| Cadillac | 3,018 | 36 | 0% | 1% |
| Chevrolet | 15,872 | 14,709 | 7.9% | 5.1% |
| Ford | 20,962 | 18,257 | 14.8% | 6.7% |
| Genesis | 1,802 | 888 | 102.9% | 0.6% |
| GMC | 1,167 | 411 | 183.9% | 0.4% |
| Fisker | 997 | – | 0% | 0.3% |
| Hyundai | 19,630 | 5,824 | 237.1% | 6.3% |
| Jaguar | 86 | 22 | 290.9% | 0% |
| Kia | 9,325 | 5,583 | 67% | 3% |
| Lexus | 1,394 | – | 0% | 0.4% |
| Lucid | 1,618 | 654 | 147.4% | 0.5% |
| Mazda | 34 | 8 | 325% | 0% |
| Mercedes | 10,423 | 2,717 | 283.6% | 3.3% |
| Mini | 516 | 1,105 | -53.3% | 0.2% |
| Nissan | 6,074 | 1,276 | 376% | 1.9% |
| Polestar | 3,710 | 2,852 | 30.1% | 1.2% |
| Porsche | 2,050 | 1,325 | 54.7% | 0.7% |
| Rivian | 15,564 | 6,884 | 126.1% | 5% |
| Subaru | 2,791 | – | 0% | 0.9% |
| Tesla | 156,621 | 131,024 | 19.5% | 50% |
| Toyota | 2,827 | – | 0% | 0.9% |
| VinFast | 1,159 | – | 0% | 0.4% |
| Volvo | 4,087 | 542 | 654.1% | 1.3% |
| Volkswagen | 10,707 | 6,657 | 60-.8% | 3.4% |
Hyundai has been on a hot streak as sales of its dedicated EV models continue gaining momentum. The South Korean automaker sold 19,630 EVs in Q3, a 237% increase from last year. Hyundai set a record by selling 11,665 IONIQ 5 electric SUVs in the quarter (+143% YOY).
Volvo was another legacy automaker that saw substantial growth, with EV sales climbing 650% over last year. The Swedish automaker expects the trend to continue with new models, including the EX30 (its smallest and cheapest EV) and the flagship EX90, its first electric seven-seater SUV.
Other German luxury automakers saw sales growth, with BMW’s EV sales climbing nearly 200% and Audi’s up 94%.
BMW, Audi, Volvo, Volkswagen, Mercedes-Benz, and Porsche all posted double-digit EV sales share. Meanwhile, Toyota, GMC, Subaru, and Lexus were below the 2% mark.
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Tesla has launched a limited version of its Full Self-Driving features in China to mixed reviews as it’s still far from what was promised.
After many delays, Tesla has now pushed an update that brings some of the advanced driver-assist features sold under its Full Self-Driving package in North America to the Chinese market.
The features are being pushed through the ‘2024.45.32.12’ update, and Tesla wrote in the release notes (translated from Chinese):
- Autopilot automatic assisted driving on urban roads (optimizing the existing NOA automatic assisted navigation driving function): Using Autopilot automatic assisted driving on controlled roads (main roads where road users enter and exit through ramp entrances and ramp exits) and urban roads will guide the vehicle to exit ramps and intersections according to the navigation route, and identify traffic lights at intersections to go straight, turn left, turn right, turn around, etc. It will also automatically change lanes according to speed and route. When the navigation route is not set, the optimal road will be selected according to the actual road conditions.
- Cabin Camera: The cockpit camera above your rearview mirror can now determine whether the driver is paying attention and remind you to focus on the road through an alarm when the intelligent assisted driving system is activated. The cabin camera video is processed inside the vehicle. No one (including Tesla) has access to it.
- Map package version updated: CN-2025.8-15218.
*The implementation time and effects of some functions may vary depending on the vehicle model and configuration.
The update has received mixed reviews from Tesla owners in China. Some of them are happy with the progress, while others are disappointed that it falls short of the self-driving capabilities Tesla promised and of the capabilities of the competition, which offers more advanced driver-assist systems for less.
Lu Panpan, a Tesla owner in China’s eastern Zhejiang province who bought a Model 3 in 2019, told Reuters:
“We can tell Tesla has no choice but to deliver a knowingly restricted system. It is hard for Tesla to catch up with the smart-driving capabilities in Chinese cars, which even makes less sense given its high pricing.”
Lu paid 56,000 yuan ($7,720) for Tesla’s FSD package. Tesla promised to deliver self-driving capability that would enable to turn your car into a robotaxi.
Instead, 6 years later, owners are getting the capability that other Chinese automakers offer in their vehicles for a fraction of the cost.
A recent report from Bloomberg claimed that Tesla plans to release another update later this year in China with better capacity, and CEO Elon Musk has claimed that he believes Tesla will release full self-driving capability in most markets within the next year – though he has been staying that every year for the last 6 years.
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At PayPal‘s first investor day in four years, CEO Alex Chriss will deliver a clear message to shareholders: Venmo isn’t just an easy way to split the dinner tab.
Chriss, who took the helm in September 2023, is trying to spur a turnaround at the payments company, and Venmo is a key part of his effort. The company told investors in New York on Tuesday that Venmo can top $2 billion in revenue by 2027. The last time PayPal provided an annual revenue figure for Venmo was 2021, when it was about $900 million.
For Chriss, Venmo expansion is all part of a broader push to restore consistent, profitable growth after years of turbulence that saw the company’s market cap dwindle by more than 80% from mid-2021 through late 2023.
With 90 million U.S. users, Venmo has been a cultural staple for years and has become a verb that’s synonymous with sending money to a friend or family member. But monetization has remained a challenge because those transactions generate little revenue.
Meanwhile, competitors like Block‘s Cash App, Zelle and Apple Pay have been gaining ground, offering simple bank integrations and an expanded range of financial services. On Tuesday, PayPal is outlining its strategy to deepen user engagement and position Venmo as the default app not just for peer-to-peer transactions, but for spending, saving and becoming what the company is calling the “go-to money movement app.”
That includes more focus on its debit card, encouraging in-store purchases, getting more merchants to use “Pay With Venmo” and rolling out features designed to keep funds within the app. Ultimately, greater business use means higher transaction volume and more profit. And for consumers, offering them increased value within the app raises the likelihood they’ll use Venmo to pay at checkout and to keep higher balances in their account.
The company has already been headed down that path. Monetized monthly active users increased 24% in 2024, and the company expects mid-single-digit annual growth in Venmo’s user base through 2027. Over that stretch, Venmo debit card total payment volume is projected to rise at a more than 20% compounded annual growth rate, while “Pay With Venmo” is expected to expand at double that rate.
Chriss has prioritized transaction margin dollars, reversing a decline that saw margins contract in 2022 and 2023 before rebounding in 2024. At investor day, he’s outlining long-term financial targets, including high single-digit growth in transaction margin dollars and per share earnings growth in the low teens by 2027.
To push Venmo beyond the consumer market and into the world of business transactions, PayPal has partnered with companies including DoorDash, Starbucks and Ticketmaster. In its fourth-quarter earnings report earlier this month, PayPal said the number of merchants using Pay with Venmo increased 50% from a year earlier.
The company said Instacart and MoonPay joined as partners in the latest quarter and that JetBlue became the first airline to allow use of Venmo for booking flights.
“While we are still early in monetizing Venmo, we have a proven playbook that is resonating with customers,” Chriss said on the earnings call. “This gives us confidence as we move to 2025 and beyond.”
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