Tesla is in a much stronger position now in the new car market versus two years ago. Let me explain why.
Last Friday I was looking at a 2025 Chevy Equinox at a nearby wholesale dealer auction? It's actually a great EV for most folks. The range is over 300 miles. It rides beautifully. Ergonomics are very well though out, and the quality control is definitely at or near the top of the market.
But right now they are sitting at lots like statues. Thousands of them. GM sold over 50,000 of them during the first nine months of last year when the EV Tax Credit was in full swing.
After the rebates went away? It has been fewer than 5,000. You can now get a new one with a $7,000+ discount in many cases.
Even then, they are just sitting.
The main problem is that there are an absolute army of good to great EVs that already compete with it, and demand for all of them has gone way south.
Ariya, Bolt, bZ4x, ID.4, Ioniq, Prologue, Mustang Mach-E. All of these vehicles, with maybe the Toyota bZ4x as the sole exception, represents an investment in the billions by the manufacturer.
Every single one of them experienced a cliff dive between 40% and 80%. once the EV Tax Credit went away.
Not a single one matched even a tenth of global sales for the Model Y except for the ID.4 which has struggled mightily due to VW's inability to market well in North America.
Tesla has nearly 60% of the EV market in North America with the 3 and Y models commanding the majority. They have 100% of the profits because they are the only ones who have successfully scaled up.
Of the seven competitors I have mentioned, none have more than 10% marketshare and nearly all are between 2% and 5%.
You can't scale to profitably when you're lucky to sell 25,000 units and your fixed costs are north of a billion. The 2025 Chevy Equinox EV you see here is an LT1 version with only 1,000 miles. They're asking for $21,800 wholesale on what is frankly a nearly new vehicle.
A new base model Toyota Corolla retails for $23,920. As much as I am a big fan of Toyota products, I would take this in a heartbeat.
Last Friday I was looking at a 2025 Chevy Equinox at a nearby wholesale dealer auction? It's actually a great EV for most folks. The range is over 300 miles. It rides beautifully. Ergonomics are very well though out, and the quality control is definitely at or near the top of the market.
But right now they are sitting at lots like statues. Thousands of them. GM sold over 50,000 of them during the first nine months of last year when the EV Tax Credit was in full swing.
After the rebates went away? It has been fewer than 5,000. You can now get a new one with a $7,000+ discount in many cases.
Even then, they are just sitting.
The main problem is that there are an absolute army of good to great EVs that already compete with it, and demand for all of them has gone way south.
Ariya, Bolt, bZ4x, ID.4, Ioniq, Prologue, Mustang Mach-E. All of these vehicles, with maybe the Toyota bZ4x as the sole exception, represents an investment in the billions by the manufacturer.
Every single one of them experienced a cliff dive between 40% and 80%. once the EV Tax Credit went away.
Not a single one matched even a tenth of global sales for the Model Y except for the ID.4 which has struggled mightily due to VW's inability to market well in North America.
Tesla has nearly 60% of the EV market in North America with the 3 and Y models commanding the majority. They have 100% of the profits because they are the only ones who have successfully scaled up.
Of the seven competitors I have mentioned, none have more than 10% marketshare and nearly all are between 2% and 5%.
You can't scale to profitably when you're lucky to sell 25,000 units and your fixed costs are north of a billion. The 2025 Chevy Equinox EV you see here is an LT1 version with only 1,000 miles. They're asking for $21,800 wholesale on what is frankly a nearly new vehicle.
A new base model Toyota Corolla retails for $23,920. As much as I am a big fan of Toyota products, I would take this in a heartbeat.
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