Tesla's American Muscle: Model Y Dominates as the Most American-Made Car, But There's a Catch
In a remarkable display of automotive prowess, the Tesla Model Y has once again clinched the top spot on Cars.com's annual American-Made Index (AMI) for being the most American-made car. Tesla's success can be attributed to its vertical integration approach, ensuring that the bulk of its vehicle parts are produced in-house and within the United States. Despite this, the electric automaker hasn't completely dominated the top four positions as it did last year. What has changed?
The Vertical Integration Advantage
Tesla has long prided itself on its vertical integration strategy. This method involves the automaker overseeing almost every part of the production process, from the smallest screw to the largest battery pack. By manufacturing a substantial amount of its parts locally in its North American facilities, Tesla secures itself a spot amongst the most 'American-made' vehicles year after year. This strategy not only keeps costs in check but also increases its appeal to the patriotic American buyer.
However, this year saw some shake-ups. According to Cars.com's freshly released 2024 list, while the Model Y remains at the top, Tesla does not enjoy the clean sweep of the top four as it did in the previous year. Here’s a rundown of the standings:
- Tesla Model Y: Fremont, Calif. and Austin, Texas
- Honda Passport: Lincoln, Ala.
- Volkswagen ID.4: Chattanooga, Tenn.
- Tesla Model S: Fremont, Calif.
- Honda Odyssey: Lincoln, Ala.
- Honda Ridgeline: Lincoln, Ala.
- Toyota Camry: Georgetown, Ky.
- Jeep Gladiator: Toledo, Ohio
- Tesla Model X: Fremont, Calif.
- Lexus TX: Princeton, Ind.
What's Behind the Shake-Up?
Intriguingly, the Tesla Model 3 didn’t make its way into the top 10 this year, a significant departure from its positioning last year. According to Cars.com, the workforce and domestic parts content have shifted, causing the Model 3 to drop to the 21st position. This change is speculated to be due to Tesla’s increased usage of Chinese batteries in the base versions of the Model 3. The Model X also saw a drop, landing at number nine this year.
Austin-based Tesla failed to repeat its 2023 sweep of the top four spots, with the Model X dropping to No. 9 and the Model 3 landing at No. 21 due to changes in workforce and domestic parts content, respectively. Despite this, Tesla still landed four of its vehicles on this year’s Index — three in the top 10 — and was also the only domestic automaker in the top 10.
The Rise of the VW ID.4
While Tesla still dominates, there is a new challenger climbing the ranks: the Volkswagen ID.4. The ID.4 has claimed the third spot, a significant leap from its number six position last year. As the only non-Tesla electric vehicle in the top 10, the VW ID.4's ascent is a clear signal that Tesla is not alone in its quest to dominate the American electric vehicle market.
Where's the Cybertruck?
Curiously absent from the list is the highly anticipated Tesla Cybertruck. Many expected it to at least crack the top 10, given Tesla's history of strong performances in the AMI rankings. However, its absence leaves room for speculation—could it be due to production delays or perhaps another strategic pivot by Tesla?
As Tesla continues to innovate and diversify its lineup, the changing dynamics of the American-Made Index serve as a fascinating lens through which we can observe the evolving landscape of the automotive industry. For now, the Model Y holds the crown, but with other manufacturers hot on Tesla's heels, the race for the most American-made car is far from over.
Stay tuned for more updates as we continue to follow the giants and challengers in this thrilling automotive race.