Tesla has once again proven its dominance in the automotive industry by securing the top spot on Cars.com’s 2024 American-Made Index (AMI) with its Model Y, marking the third consecutive year it has held this position. The announcement further solidifies Tesla’s commitment to American manufacturing and its significant role in the domestic automotive market.
With a robust manufacturing base in the United States, Tesla has managed to place three of its models in the top 10 of the 2024 AMI. The Model Y continues to lead at number one, followed by the Model S at fourth place and the Model X at ninth. Despite the Model 3 dropping to 21st place due to changes in domestic parts content and workforce calculations, Tesla remains the only U.S.-based automaker with a strong presence in the top 10.
Here’s what Cars.com had to say about the rebalance:
Though Teslas no longer hold a vice grip at the top of the order thanks in part to changes in this year’s workforce calculations, it’s worth noting the Model X has the same overall U.S. and Canadian parts content as it did for 2023, and the Model S has 5% more; only the Model 3 saw a drop in overall parts content percentage.
Even so, the Model 3 features a variant with 75% U.S. and Canadian parts content—a requirement of the original AMI only one other vehicle managed for 2024.
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Foreign Automakers in the American-Made Index
Interestingly, the 2024 AMI revealed that 66% of the vehicles listed come from foreign automakers. These companies, while headquartered outside the U.S., have established substantial manufacturing operations within the country, particularly in states like Alabama, Indiana, Michigan, and Ohio.
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Honda, for example, has three models—the Passport, Odyssey, and Ridgeline—all built in Lincoln, Alabama, and ranking highly on the list. Volkswagen’s ID.4, assembled in Chattanooga, Tennessee, secured the third position, showcasing the competitive presence of foreign brands in the U.S. market.
General Motors and Ford’s Positions
General Motors (GM) and Ford, both Michigan-based automotive giants, also featured prominently on the list but did not secure top spots. GM had 18 vehicles on the list, with the highest-ranking model being the Chevrolet Colorado at 23rd. Ford, with 12 vehicles, saw its Lincoln Corsair and Mustang at 29th and 31st places, respectively. Despite not making the top ten, these manufacturers continue to be significant players in the American automotive landscape.
The Factors Behind Tesla’s Success
Tesla’s vertical integration strategy, which involves producing many of its parts in-house and manufacturing its vehicles in North America, particularly in Fremont, California, and Austin, Texas, has been a key factor in its success. This approach not only enhances quality control but also reinforces Tesla’s commitment to American manufacturing. By integrating operations and focusing on domestic production, Tesla has consistently placed its vehicles at the top of the AMI rankings.
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The drop of the Tesla Model 3 to 21st place was attributed to changes in workforce and domestic parts content. Reports suggest that the increased use of Chinese batteries in the base versions of the Model 3 might have contributed to this decline. Nevertheless, Tesla’s Model Y, S, and X’s strong performance in the index underscores the company’s strategic focus on local manufacturing and sourcing.
According to cars.com, the Model 3 didn’t make the top 10 this time because of “changes in workforce and domestic parts content”: 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.
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The release of the 2024 AMI comes amidst ongoing discussions in Washington about tariffs on imported vehicles. Recently, President Joe Biden imposed a 100% tariff on Chinese electric vehicles (EVs) to protect domestic suppliers. This move could further influence the landscape of the American automotive market, potentially benefiting manufacturers like Tesla who have a strong domestic production base.
While Tesla leads in the American-Made Index, it is important to recognize the contributions of traditional American automakers. Ford, for instance, produces 72% of its vehicles sold in the U.S. domestically, trailing only Tesla in this regard. Despite not having any vehicles in the top ten, Ford and GM’s substantial production within the U.S. highlights their ongoing commitment to American manufacturing.
