Lede

Audi's strong Q1 sales in the US reflects a growing demand for EVs, with EVs making up 8.4% of sales; however, sales of certified pre-owned vehicles have declined by 6% YoY, as buyers opt to buy their own vehicles at the residual value embedded in their leases.

Summary

• Audi of America reported Q1 sales of 52,763 vehicles, up 49% YoY, with EVs making up 8.4% of US sales.
• Audi sold 4,438 EVs in Q1, up from 3,247 in Q1 2022 and 4,257 in Q4 2022.
• The percentage of Audi's US sales that are EVs has increased from 5.6% to 8.5% over the past 12 months.
• EVs made up about 6% of new car sales in the US in 2022 and 12% of new car sales in Europe; in China, the penetration rate was about 22%.
• Audi's Q1 sales figures suggest a growing demand for EVs in the US and the importance for all automakers to succeed in capturing more of the overall market.
• Sales of certified pre-owned vehicles have declined by 6% YoY, reflecting a preference among buyers to buy their own vehicles at the residual value embedded in their leases.
• Used-car prices have fallen from their recent peaks, but they are still up 54% compared to three years ago.
• Volkswagen stock rose 0.6% in overseas trading Monday, while GM and Tesla shares dropped 1.1% and 6.1%, respectively.
• Tesla and GM reported growing EV sales, but investors appeared to have wanted even faster growth, explaining some of Monday's declines.