Data: S&P Global Charts: Tory Lisick/Axios Visuals
Electric vehicles (EVs) account for 7% of new vehicle registrations in the US in January 2020, up from 4.1% in January 2022 – another sign that the EV transition is gaining momentum.
- As the overall EV pie grows, Tesla’s market share continues to shrink.
why it matters: EVs aren’t just for early adopters anymore.
- With wider selection and few signs of softening prices, mainstream car buyers are increasingly turning their EV curiosity into purchases.
- At the end of 2022, there are 47 electric models available for sale in the US, up from 33 last year.
axios tracking Historical shift from gasoline using vehicle registration data from S&P Global Mobility.
- EVs will make up 5.6% of all new US car registrations in 2022.
- This is up from 3.1% in 2021 and 1.8% in 2020, but still lags far behind China and Europe.
zoom in: The latest data shows that Tesla continues to dominate, but its market share is eroding as competitors introduce new models.
- From January 2022, for example, Tesla’s share of the EV market is set to drop from 72% to 54% — and it’s likely to fall below 50% in the next month or so, according to industry analysis at S&P Global Mobility. says associate director Tom Libby.
- Tesla’s Model S sedan, in particular, is struggling. Registrations for the S fell 75% in January 2023, while Mercedes-Benz’s new EQS sedan quadrupled.
Where it stands: Tesla’s Model Y and Model 3 have the largest market share and are still growing, but rival cars are rapidly gaining ground.
- General Motors’ Chevrolet Bolt is the most popular non-Tesla EV with a 10% share – due to a $6,000 price cut following a harmful battery recall.
- Volkswagen’s ID.4 and Ford’s Mustang Mach-E rounded out the top five EVs registered in January in market share.
reality check: Of the 279 million cars and light trucks on American roads, less than 1% are electric.
- Even in California, the nation’s leading EV market, they represent only 2.6% of all registered automobiles.
- The slow transition from gasoline to electric vehicles will take a few decades to complete.
News run: Existing consumer tax credits for EV purchases are being reworked — again — to grow American manufacturing and reduce dependence on China.
- Changes to the existing $7,500 tax credit will affect the pace of adoption.
- The US Treasury Department explained on March 31 how it will implement new sourcing requirements for battery components and critical minerals under the Inflation Reduction Act – rules that affect which vehicles qualify for tax credits going forward. do.
- The list of eligible vehicles will be announced in mid-April, but some of today’s EVs are expected to meet the new standards.
plot: Anyone racing to snag the $7,500 tax break before the rules get tighter is likely to find EVs in short supply.
What are we watching: Does EV leasing last, especially for foreign models?
- There is a loophole in the Inflation Reduction Act that allows commercial vehicle owners – such as leasing companies – to bypass domestic content requirements for EVs.