Is Kia Quietly Becoming the Next Tesla With These EVs?
When most people think of electric vehicles, the first name that comes to mind is likely Tesla. As the EV pioneer and market leader, Tesla has become nearly synonymous with electric cars. But while Elon Musk‘s company soaks up most of the headlines, South Korean automaker Kia has been quietly building an impressive EV lineup. And with strong sales growth plus upcoming models like the EV9 SUV, Kia just may emerge as a serious rival to Tesla‘s dominance.
Kia‘s EV History: A Decade in the Making
Kia‘s journey into electric vehicles started in 2014 with the launch of the Soul EV, an electrified version of their popular Soul compact crossover. While not a ground-up EV, the Soul EV sold a respectable 10,000 units in its first couple years. This demonstrated consumer appetite for an affordable, practical EV from a mainstream brand.
In 2021, Kia unveiled its first model engineered specifically for battery-electric power – the slick EV6 crossover. With 310 miles of range, 800V fast-charging, and performance trim accelerating 0-60 mph in a blistering 3.4 seconds, the EV6 combines cutting-edge capabilities with an attractive starting price of $41,400. It’s racked up numerous Car of the Year awards worldwide and brought a Tesla-fighting dynamism to Kia‘s EV lineup.
Strong 2022 Sales Growth Driven by EV Momentum
Buoyed by rave reviews of the EV6, Kia‘s EV sales have exploded in 2022 on both sides of the Atlantic. In Europe, Kia and partner Hyundai now account for 12% share of the EV market. And in America, EV sales more than doubled for Kia in both May and August year-over-year. The Soul EV, Niro EV, and especially EV6 are resonating with consumers seeking alternatives to Tesla‘s somewhat premium-priced offerings.
Kia is attracting buyers with strengths Tesla doesn‘t match: a focus on value, approachable designs tailored for families, and nation-wide dealer networks providing personalized customer service. Combine these advantages with fast-charging 800V electric architectures for models like EV6, and Kia shapes up as a compelling mainstream EV choice.
Upcoming Models to Further Kia‘s Ambitions
Riding high on its early EV achievements, Kia is charging ahead with major investments in new electric models. Next up is the EV9, a three-row SUV with seating for seven slated to launch in 2023. Stylish and futuristic, the EV9 promises 300+ miles of range at a base price potentially $20,000 less than the equivalent Tesla Model X.
Also in the pipeline are eight more EVs over the next three years. This torrent of new releases demonstrates Kia is all-in on electric vehicle development – to the tune of $25 billion invested by 2025.
Inflation Reduction Act Creates New Headwinds
Kia‘s momentum in the U.S. faces fresh challenges due to the recently passed Inflation Reduction Act. New rules for EV tax credits under the law require final assembly in North America, among other stipulations. As Korean-made vehicles, Kia EVs currently fail to qualify.
Kia does have a U.S. plant under construction in Georgia. But vehicles built there won’t come online until 2025, missing out on lucrative tax credit eligibility in the meantime. This could hamper Kia‘s progress versus rivals like Tesla and Ford who should meet the tightened incentive requirements.
Executing aggressive electrification roadmaps while adapting to regulatory shifts will stretch Kia in new ways as it navigates an automotive landscape growing more competitive each day.
The Verdict: Kia is a Rising EV Star, But Overtaking Tesla Won‘t Come Easy
With younger brands like Tesla, Rivian and Lucid attacking the luxury end of the EV spectrum, Kia has an opportunity to become the EV brand for the mainstream. Its expanding electric lineup checks all the boxes affordability, quality and practicality-wise for budget-conscious, early majority buyers.
Given Kia‘s momentum prior to the Inflation Reduction Act, clearly the company was on track to sell EVs in serious volumes comparable one day to Tesla. But new tax credit disadvantages relative to Tesla could hamper Kia‘s progress in the U.S. market near-term. Execution of strategies to offset this issue will prove critical to fulfilling ambitions of overtaking Tesla.
Still, with Kia rapidly rolling out multiple new EV models catering to wide-ranging buyer needs, the automaker has legitimate potential to emerge as a leader in electrifying transportation for the masses. Their vehicles may not generate Tesla-like hype, but attracting everyday commuters to switch to battery-power could make Kia‘s EVs the quiet cruisers of the coming EV revolution.
