It’s no surprise that the Hyundai Ioniq 5 is tackling the competition and taking sales from popular electric SUVs like the Tesla Model Y. While Tesla is known as the electric vehicle ruler, its kingdom is starting to fall. New challengers like the 2022 Hyundai Ioniq 5 are beginning to tip the scales.
The 2022 Hyundai Ioniq 5 is stealing sales from Tesla
According to Automotive News, the 2022 Hyundai Ioniq 5 is shaking up the competition by taking sales from incredibly popular options like the 2022 Tesla Model Y. It’s one of the main rivals that could change the game.
Tesla is losing market share due to high prices. The 2022 Tesla Model 3 starts at $46,990, while the long-range model increases the price to $57,990. Also, the 2022 Tesla Model Y kicks things off at $65,990.
The 2022 Hyundai Ioniq 5 begins at around $39,950, and the top-spec Limited model brings the cost up to $51,100. So the highest trim level begins at $6,890 less than the long-range Model 3, and $14,890 less than the standard Model Y.
Tesla’s market share in the United States has decreased from 79 percent in 2020 and is expected to drop below 20 percent by 2025. However, it currently represents 65 percent of the market for electric vehicles.
Why are options like the 2022 Ioniq 5 considered better than Tesla models?
Aside from more affordable pricing, options like the 2022 Hyundai Ioniq 5 are considered to have a high-quality build. Plus, rivals feature tech that’s considered to be equal to or better than what Tesla models have to offer.
Tesla electric vehicles had a hold on the market when they were the primary options available compared to cheap alternatives such as the Nissan Leaf and Chevy Bolt. But now rivals have more value.
Plus, Tesla EVs aren’t the only luxury brands. BMW, Mercedes, Audi, and Polestar are getting into the electric segment and are possibly seen as more reliable and trustworthy options.
The Tesla Model Y has a blew average reliability and quality ranking. Meanwhile, the Hyundai Kona is the electric vehicle with the highest reliability ranking.
Competitors are offering a wide range of different options to consider too. The Hyundai Ioniq 5 standard out with unique style, the Rivian R1S is a three-row option for families, and the Ford F-150 Lightning is a full-size truck.
Could Tesla stop the decline?
Options like the 2022 Hyundai Ioniq 5 are only held back by production constraints. Tesla could prevent its decline by producing more options than competitors.
However, as investments are made to increase electric vehicle production, then Tesla is expected to continue losing new and current customers.
But interest in switching to electric vehicles is still a wildcard. The Tesla Model Y and Model 3 are the only electric vehicles that got over 30,000 registrations during the first three quarters of 2022.
We will continue to monitor sales trends as the market expands. But as we drive vehicles like the Ford Mustang Mach-E, Rivian R1T, Hyundai Ioniq 5, and Kia EV6, we get it. We see why these affordable EVs are picking up steam.