Trystan Casey
The US market for electric vehicles (EVs) has been experiencing significant growth in recent years, driven by consumer demand for environmentally friendly transportation options and government incentives. In 2023, 9.3% of the roughly 286 million cars on US roads were electric vehicles, a record high. Tesla has been the leading manufacturer in the US EV market, but its market share has been declining as other automakers enter the market. In the second quarter of 2024, Tesla's market share fell below 50% for the first time since 2017. Other manufacturers such as Ford, Chevrolet, Hyundai, and Kia have been gaining ground, with Ford holding the second-largest share of the EV market in the US as of the third quarter of 2024. The US EV market is expected to continue growing, with major automakers investing heavily in EV technology and introducing new models, making EVs more appealing to a wider range of consumers.
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What You'll Learn
Electric vehicle market share in the US
The US electric vehicle (EV) market has been experiencing significant growth in recent years. This growth is driven by increasing consumer demand for environmentally friendly transportation options, greater availability and variety of EV models, and the expansion of charging infrastructure.
In the second quarter of 2024, the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in the US increased to 18.7% of total new light-duty vehicle (LDV) sales, up from 17.8% in the first quarter. BEVs, in particular, continued to gain popularity in the luxury vehicle segment, accounting for 35.8% of LDV luxury sales in the third quarter of 2024.
Tesla has been the leading manufacturer in the US EV market, with its Model Y and Model 3 being the best-selling electric vehicles. However, its market share has been decreasing, falling to 44% in the fourth quarter of 2024. Other manufacturers, such as General Motors, Ford, and the Hyundai Group, are closing in on Tesla. In 2024, General Motors reported a 50% increase in EV sales year over year, while Ford achieved a 38% increase. Honda also made significant strides, with over 33,000 EV sales in the same year, driven by the popularity of the Prologue.
The US EV market is expected to continue growing in 2025, with Cox Automotive forecasting that EV sales will likely account for close to 10% of total sales. This growth is anticipated despite potential policy changes in Washington that could slow it down. However, it is expected that many buyers will take advantage of the current incentives before any changes are implemented.
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Electric vehicle charging infrastructure
The US market for electric vehicles (EVs) is experiencing significant growth, driven by consumer demand for environmentally friendly transportation options and government incentives. As the demand for EVs increases, so too does the need for charging stations to support this growing market.
The US government has implemented various incentives and subsidies to promote the adoption of EVs, and, alongside private companies, is investing in the development of EV charging infrastructure. This infrastructure is comprised of public and private charging stations, with the vast majority of EV charging taking place at home. As of February 2024, there were over 61,000 publicly accessible EV charging stations in the US, with 64% of Americans (or roughly six-in-ten) living within 2 miles of a public EV charging station.
The Alternative Fueling Station Locator allows users to search for public and private charging stations, and provides quarterly reports on EV charging station trends. The US Department of Energy's Alternative Fueling Station Locator tracks EV charging stations in the United States and Canada, and breaks down the growth of public and private non-residential charging infrastructure by charging level, network, and location.
The Combined Charging System (CCS), also known as the SAE J1772 combo, can be used to charge with Level 1, Level 2, or DC fast charging equipment. Level 2 units can range from 2.9 to 19.2 kW power output, while DC fast charging equipment enables rapid charging at power outputs up to 500 kW. As of 2023, more than 20% of public EV charging ports in the US were DC fast chargers, with federal funding expected to increase the availability of this technology.
The charging infrastructure industry has also aligned with the Open Charge Point Interface (OCPI) protocol, which uses specific terminology to describe charging infrastructure, including station location, EV charging port, and connector.
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Electric vehicle consumer demand and preferences
The US market for electric vehicles (EVs) has been experiencing significant growth in recent years, driven by increasing consumer demand for environmentally friendly transportation options. This demand is fuelled by a growing awareness of the impact of traditional gasoline-powered vehicles on the environment, with electric vehicles seen as a more sustainable alternative. The US government's focus on reducing carbon emissions and promoting clean energy has also created a favourable environment for the electric vehicle industry.
Consumer preferences in the US EV market are influenced by a range of factors, including age, gender, socio-economic status, and environmental consciousness. Research suggests that being male, having children, education, living in urban areas, and previous experience with EVs positively influence the adoption of electric vehicles. Additionally, the availability of a wide range of electric vehicle models, from luxury options to more affordable choices, has made EVs more appealing to a diverse range of consumers.
The US EV market has witnessed the entry of both legacy manufacturers and startups, with Tesla initially dominating the market. However, Tesla's market share decreased to 44% in 2024, with General Motors, Ford, and the Hyundai Group closing in. Other notable manufacturers include Chevrolet, Honda, and Kia. The shift towards EVs is also influenced by the expansion of charging infrastructure, as the government and private companies invest in developing charging stations to support the growing number of electric vehicles on US roads.
As of Q4 2024, the US EV market share was 8.7%, with fully electric vehicles (battery electric vehicles, BEVs) accounting for 8.1% of all light vehicle sales in the country. Combined sales of hybrid vehicles, plug-in hybrids, and BEVs in the US rose to 16.3% of total new light-duty vehicle sales in 2023. This shift towards electrification in the automotive industry is expected to continue, with EVs offering a carbon-neutral alternative to traditional combustion engine vehicles.
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Electric vehicle sales and growth
The US market for electric vehicles (EVs) has been experiencing significant growth in recent years. This growth is driven by increasing consumer demand for environmentally friendly transportation options, as well as government incentives and subsidies. With a growing awareness of the impact of traditional gasoline-powered vehicles on the environment, many consumers are now opting for electric vehicles as a more sustainable alternative. The US has a well-developed automotive industry and a strong consumer base, which has contributed to the growth of the EV market.
The EV market in the US is divided into two distinct markets: Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). In 2023, 7.3% of all new car sales in America were fully electric, and this number increased to 8.1% in 2024. In the second quarter of 2024, combined sales of hybrid vehicles, plug-in hybrids, and BEVs in the US increased from 17.8% of total new light-duty vehicle sales in 1Q24 to 18.7% in 2Q24. This increase was driven primarily by hybrid electric vehicle (HEV) sales, which increased by 30.7% year-over-year. Plug-in hybrid electric vehicle sales also increased slightly from 1.7% to 2.0% of the total light-duty market year over year.
Several trends are contributing to the growth of the EV market in the US. One notable trend is the increasing availability and variety of EV models. Major automakers have been investing heavily in EV technology and introducing new models with improved features and performance, making EVs more appealing to a wider range of consumers. Another trend is the expansion of charging infrastructure. As the demand for EVs increases, the government and private companies have been investing in the development of charging stations to support these vehicles.
In terms of market share, Tesla has been the leading manufacturer in the US EV market, with a 75% market share in America at the start of 2022. However, its market share has been decreasing, and in 2Q24, it accounted for 48.9% of the total electric vehicle market. Other manufacturers, such as Ford, Chevrolet, Hyundai, and Kia, have been gaining market share. In 2Q24, Ford accounted for 8.0% of sales in the EV market, driven by the sales of the Mustang Mach-E and F-150 Lightning. Honda has also seen success with its Prologue model, selling over 33,000 EVs in 2024.
Looking ahead, the US EV market is expected to continue its growth. The volume-weighted average price of the EV market in the US in 2025 is expected to be US$67.3k. The annual growth rate (CAGR 2025-2029) is projected to be 10.54%, resulting in a market volume of US$156.3 billion by 2029. The unit sales of the EV market in the US are expected to reach 2.32 million vehicles in 2029.
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Electric vehicle market trends
The US electric vehicle (EV) market has been experiencing significant growth in recent years, driven by increasing consumer demand for environmentally-friendly transportation options. With a growing awareness of the environmental impact of traditional gasoline-powered vehicles, many consumers are now opting for electric vehicles as a more sustainable alternative. This shift in consumer preferences has led to several notable trends in the US EV market.
One of the key trends is the increasing availability and variety of EV models. Major automakers have been investing heavily in EV technology and introducing new models with improved features and performance, making EVs more appealing to a wider range of consumers. The expansion of the EV market has also led to increased competition, with startups and legacy giants vying for market share. While Tesla has been the leading manufacturer in the US EV market, its market share has been decreasing, with other brands, such as Ford, General Motors, and Hyundai, gaining ground.
Another important trend in the US EV market is the expansion of charging infrastructure. As the demand for EVs increases, the need for convenient and accessible charging stations becomes more critical. The government and private companies have been investing in the development of charging infrastructure to support the growing number of electric vehicles on the road. This includes the installation of public charging stations, as well as the integration of charging options in various locations, such as parking garages, workplaces, and residential areas.
The US EV market is also influenced by macroeconomic factors and government incentives. The US government has implemented various incentives and subsidies to promote the adoption of electric vehicles, further driving market growth. Additionally, the Inflation Reduction Act offers clean vehicle tax credits for manufacturers who comply with domestic content requirements, encouraging the production and sale of electric vehicles in the US.
Looking ahead, the US EV market is projected to continue its growth trajectory. By 2025, the market revenue is expected to reach US$104.7 billion, with a projected market volume of US$156.3 billion by 2029. This growth will be driven by the increasing consumer demand for environmentally conscious options, advancements in EV technology, and the expanding charging infrastructure.
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Frequently asked questions
The US electric vehicle market has been experiencing significant growth in recent years. This growth is driven by government incentives, increasing environmental consciousness among consumers, and the expansion of charging infrastructure. The market share of electric vehicles in the US was 8.7% in Q4 2024, with fully electric vehicles (BEVs) making up 8.1% of all light vehicle sales in 2024. Tesla is the leading manufacturer in the US electric vehicle market, but its market share has been declining as other automakers enter the market.
One of the key trends in the US electric vehicle market is the increasing variety of electric vehicle models available. Major automakers have been investing heavily in electric vehicle technology and introducing new models with improved features and performance, making electric vehicles more appealing to a wider range of consumers. Another trend is the expansion of charging infrastructure to support the increasing demand for electric vehicles.
According to Experian Automotive, the Tesla Model Y was the best-selling electric vehicle in the US in the first quarter of 2024, with a 39.3% market share. The Tesla Model 3 was the second-best-selling electric vehicle with an 11.9% market share. Other popular electric vehicles in the US include the Rivian R1S, Volkswagen ID.4, and the Honda Prologue.
