Mathilde Carlier
Research Expert covering transportation and logistics
Electric vehicles in the United States - statistics & facts
In the wake of the 2024 presidential election, the future of the United States’ electric vehicle market is uncertain. Changes in tariffs and purchase incentives are expected under Donald Trump’s second presidency, which would impact the U.S.’s growing electric vehicle market. For the first time in 2023, over one million EVs were sold in the country, which represented an increase of over 56 percent compared to 2022 sales. This boom in EV purchases was supported by various incentive policies, such as rebates, grants, and tax incentives. The success of the American EV manufacturer Tesla, the second global best-selling electric vehicle brand, also contributed to attracting new players to the U.S. EV market, though market insertion has been challenging.
Tesla's success and the increasing popularity of electric vehicles have attracted growing investments in EVs, charging infrastructure, and battery manufacturing. Manufacturers are looking to increase their research and development expenditure, with electric mobility at the forefront of their investments. This is partly motivated by the Biden administration’s commitment to decarbonizing its fleet, with many states pledging to ban the sale of fossil fuel vehicles by 2035. However, despite this success, new market players still struggle to attain profitability. Despite being among the best-selling electric vehicle brands in the U.S., Rivian reported a net loss for its fifth consecutive fiscal year in 2023. Lucid Motors did not fare better, increasing its net loss that same year despite manufacturing some of the EV models with the longest driving range in the country.
The electric vehicle market in the United States is currently growing, but challenges faced by new players when entering the market and by consumers looking to purchase electric vehicles impact this growth. Governmental policies aimed to support transport decarbonization have addressed some of these issues, but the changes coming with the next presidency could shift the EV landscape in the country.
New players are yet to reach profitability
Despite more American brands ranking high among the best-selling battery-electric vehicle (BEV) brands in the United States, the U.S. electric vehicle market heavily depends on Tesla's sales. In 2023, the company reported over nine times as many BEV sales as Ford, which ranked second. This contrasts with the global BEV market, where the gap between Tesla and other manufacturers is not as steep.Tesla's success and the increasing popularity of electric vehicles have attracted growing investments in EVs, charging infrastructure, and battery manufacturing. Manufacturers are looking to increase their research and development expenditure, with electric mobility at the forefront of their investments. This is partly motivated by the Biden administration’s commitment to decarbonizing its fleet, with many states pledging to ban the sale of fossil fuel vehicles by 2035. However, despite this success, new market players still struggle to attain profitability. Despite being among the best-selling electric vehicle brands in the U.S., Rivian reported a net loss for its fifth consecutive fiscal year in 2023. Lucid Motors did not fare better, increasing its net loss that same year despite manufacturing some of the EV models with the longest driving range in the country.
Market challenges discourage consumers
Nearly half of U.S. consumers reported tax rebates and discounts at the time of purchase would encourage them to buy or lease a battery-electric vehicle. This preference for buying incentives at the time of purchase is related to the fact consumers considered BEVs’ purchase price would hold them back from purchasing these vehicles. While the incentives already in place in the country can address some consumer worries, cost-related factors were not the leading source of concern for U.S. residents regarding fully electric vehicles. Apprehensions surrounding the time required to recharge a vehicle and its driving range topped the ranking. These worries are not unfounded: Though the U.S. boasts a consistently growing public charging network, most of its charging infrastructure consisted of slow chargers. Access to public charging further varies greatly based on state, with states such as California, which reported the largest BEV market in the country, having very few chargers per 100 EVs.The electric vehicle market in the United States is currently growing, but challenges faced by new players when entering the market and by consumers looking to purchase electric vehicles impact this growth. Governmental policies aimed to support transport decarbonization have addressed some of these issues, but the changes coming with the next presidency could shift the EV landscape in the country.
