Five of the 10 “most American” cars are Tesla products, according to a new study. A pair of Teslas – the Model 3 compact sedan and Model Y compact SUV – tied for the title of most American car.
The study comes, appropriately, from American University’s Kogod School of Business. Researchers there measure the percentage of parts originating in the U.S. or Canada in every car sold in the U.S.
No, we don’t know why American University considers Canada part of the U.S.
The Model Y and Model 3 top the rankings, but only in their Long Range trims. Each contains 87.5% “total domestic content,” or TDC. The Model 3 Performance and the base version of the Model Y follow closely at 85%.
A pair of Jeep Cherokee trims – the Altitude Lux and Latitude – follow at 81.5 and 80.
The list reflects 2023 models. It published in 2024 because of a delay in getting some information from government sources.
Domestic Content Dropping, But That Could Reverse Soon
Overall, the school says, the domestic content of cars has been dropping since 2015. “Domestic manufacturers, with more experience in developing North American sourcing strategies since the ratification of the North American Free Trade Agreement in 1994, have been more likely to look to Mexican suppliers for many of their parts and components.”
But recent changes to that agreement could reverse the trend. Under the new terms, manufacturers must use a higher percentage of North American steel and aluminum.
The 10 (Okay, 26) Most American Cars
The Kogod School’s Made in America Auto Index looks at trim levels since automakers may source parts for each trim from different countries. Breaking the results down that fine also results in many ties — the top 10 list has 26 models on it.
Where a model doesn’t list trim levels, the survey found no difference between them.
Most automakers today are global companies. They build cars on multiple continents, often far from their headquarters. So “import” automakers and “domestic” automakers tied, each making up half the list.
Five of the 10 “most American” cars are Tesla products, according to a new study. A pair of Teslas – the Model 3 compact sedan and Model Y compact SUV – tied for the title of most American car. The study comes, appropriately, from American University's Kogod School of Business.
Tesla sells cars at high profit margins while continuing to grow. 2.) Tesla does more than sell cars including areas that likely will be more valuable than their car divisions over time. There valuation, like all stock valuation is based on the potential and likelihood of growth.
While several automakers got their start making cars in America, you won't find any vehicles on the market that are 100% American-made. Today, manufacturers outsource their car production. So brands with American origins now make their cars in other countries, and foreign brands outsource some production in America.
For example, in Q1 2024, Tesla produced globally 433,371 EVs, while the Giga Shanghai's volume amounted to 220,876. That's 51% of the global result. Shanghai's contribution appears to be stable at around 51% over the past seven quarters.
Excluding limousines, the longest American-produced production sedan is the 1974-76 Cadillac Fleetwood 75 nine-passenger sedan, measuring 252.2 in (6,406 mm). At 5,712 lb (2,591 kg), the heaviest American-produced car (excluding trucks and SUVs) is the 1960 Lincoln Continental convertible.
Tesla's market value lead over Toyota peaked at $939 billion in early November 2021, just after a massive order from Hertz Global Holdings Inc. sent the EV manufacturer's valuation soaring past $1 trillion for the first time.
Tesla owners are typically white men, a study that analyzed drivers of several Tesla models found. The typical Tesla owner has a household income of more than $150,000 a year, according to the study. Tesla owners are also more likely to own a home and not have children living with them.
A roughly $661 billion market cap equates to the combined market value of many of the largest automakers. Tesla sustains this ultra-premium valuation on the basis that it's an AI-driven technology company.
Not only has Tesla succeeded in becoming the most valuable automaker in the world, but it also holds the status as one of the world's most valuable companies.
Tesla has 4 active automotive manufacturing facilities spanning 3 countries: the United States, China and Germany. As well as the original Fremont Factory in California, there are active production lines at the Gigafactory Texas, Gigafactory Berlin-Brandenburg and Gigafactory Shanghai.
Since the end of September, Tesla's share of the US EV market has grown by 1.3 percentage points to 51.3%. That outpaced all other automakers. Hyundai, VW, and BMW lost market share in the period. This leaves Tesla way ahead.
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