Move over Elon Musk, it appears that Tesla may have some electrifying competition in the form of Hyundai and Kia.
The two South Korean carmakers, have recently gained popularity with their new models, the Hyundai Ioniq 5 and sister company Kia’s EV6 both revving their engines in the Electric Vehicle (EV) market.
The new EVs are outperforming other competitors such as the Nissan Leaf, Chevrolet Bolt, and even the popular Ford Mustang Mach-E.
The EV6 sold 19,267 while the Ioniq 5 sold 21,262, a combined 40,529 in the year through November, compared to Ford’s 28,089 according to CarFigures.com.
‘From an EV perspective, they’re really just kind of cleaning the floor,’ said Edmunds analyst Joseph Yoon to Bloomgberg. ‘I honestly don’t know if any dealers around me have any in stock.’
Hyundai and Kia’s new electric vehicles (EV), Ioniq 5 and EV6, pictured, have seen significant success in the market, outpacing competitors
The Hyundai Ioniq 5 has recently gained popularity with their new models
The Tesla Model Y, a mini SUV which is closest in size and price band to the Hyundai and Kia, sold 56,937.
Although Musk’s Tesla is still managing to sell a higher volume of cars overall, it took his company a decade to sell as many EVs as Hyundai and Kia have in just a few short months. Hyundai’s vehicle has been six years in the making.
The high demand has even lead to shortages at car dealerships with the current waitlist for the EV6 about six months.
‘The thinking was, with the platform we have and the market understanding we have, let’s put together a really bold, breakthrough proposition,’ Steve Kosowski from Kia explained. ‘We’re going to make a statement that Kia is here.’
Even Musk has offered praise: ‘Hyundai is doing pretty well,’ he tweeted in June.
Kosowski also explains there is a form of ‘Tesla fatigue’ settling in with company’s vehicles now becoming commonplace, and not just in the coastal states.
Previous owners of gas powered Kia and Hyundai models are also considering the company’s new EV models with customers already trusting the brand.
The timing of the release of these models has been favorable, as EV adoption is increasing in the US due to concerns about the environment and rising gasoline prices which had been on an upward trajectory until recently.
Even Elon Musk has offered praise: ‘Hyundai is doing pretty well’, he tweeted in June
The Tesla Model Y, a mini SUV which is closest in size and price band to the Hyundai and Kia sold 56,937 but took decades to reach the level the vehicle is selling at now
Tesla is on track to have its worst year ever. Its share price has fallen 70 percent over the last 13 months and investors seem to be getting tired of Musk’s constant distracting Twitter chaos
The two models offer features that are unique in the EV market, including a large amount of cargo space, the ability to adjust regenerative braking with pedals and bi-directional power, which allows for the use of power tools or charging another EV with the car.
They also have fast charging rates, adding almost 16 miles of range per minute under ideal conditions.
Starting at around $40,000, the vehicles have a relatively affordable price point compared to other luxury EVs the majority of which are priced above $45,000.
Other lower end vehicle such as the Nissan Leaf are also starting to feel a little dated with the second generation released in 2017.
The lower price point appeals to a wider range of buyers including those who are budget-conscious who may have otherwise purchased a starter sedan.
Luxury car buyers who are contemplating switching to EVs also appear be be taking interest in the cars.
‘These two cars have come in kind of at the right price and the right size for a lot of buyers,’ analyst, Yoon said. ‘And I think there’s a level of inherent trust with a big manufacturer getting in the game with a mainstream.’
Tesla, meanwhile, is on track to have its worst year ever. Its share price has fallen 70 percent over the last 13 months and investors seem to be getting tired of Musk’s constant Twitter chaos since his buyout of the social network.
Tesla’s stock price reached an all-time high of more than $414 in November 2021. It has since plummeted 70 percent to $123.15 as of Friday with shares falling a further 1 percent.
The company has since lost nearly two-thirds of its value, at a time when rival carmakers are cutting in on Tesla’s dominant share of electric vehicle sales.