Trystan Casey
Electric vehicles (EVs) are becoming increasingly popular, with global sales of non-electric cars having peaked in 2018. In the US, there were over 454,670 EV purchases from January to May 2024, accounting for about 6.9% of new vehicle purchases. This is a notable increase from 2022, when 713,145 EVs were sold, and an even more impressive rise since 2018, with electric car sales having increased by over 400%. As of 2023, there were approximately 2,442,270 electric vehicles registered in the US, with California having the highest EV adoption rate at 2.5%. Despite this progress, electric vehicles still constitute a niche market, representing less than 1% of registered vehicles in most US states.
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What You'll Learn
Electric vehicles in the US
Electric vehicles (EVs) have been growing in popularity in the United States. In 2023, there were over 3.3 million electric vehicles registered in the US, up from 2 million in 2022 and 1.3 million in 2021. California led the way with the highest number of electric vehicle registrations by a wide margin (approximately 1,178,948 to 1,256,646), followed by Florida (231,518 to 254,878), Texas (210,433), Washington (141,055), and New Jersey (125,317). California's high adoption rate is attributed to its air-quality regulations, and it is expected to have over 4 million electric cars on its roads by 2030.
In terms of market share, Tesla has been the dominant force in the US electric vehicle market, with a share of around 50% to 56.5% in 2023. Tesla's best-selling EV is the Model Y, a crossover SUV that was released in 2020. In 2023, Tesla sold 296,059 Model Ys, accounting for 26.1% of new EVs sold that year. However, its market share has been falling due to established automakers introducing more EVs to their model lineups. Other popular EV models in the US include the Tesla Model 3, Honda Prologue, Chevrolet Bolt EV, Ford Mustang Mach-E, and Chevrolet Blazer EV and Silverado EV.
While the number of electric vehicles in the US is increasing, they still have a long way to go to catch up to gas-powered vehicles, which make up the majority of cars on the road. In 2025, electric vehicles and plug-in hybrid electric vehicles (PHEVs) combined made up only 7.9% to 9.7% of vehicle sales, while gas-powered vehicles (including hybrids) accounted for 90.3% of sales. However, the US electric vehicle market is expected to grow significantly over the next decade, with a projected market value of $215.7 billion by 2032.
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California's EV market
California has been leading the US in market share for electric vehicles, with nearly 27% of new light-duty vehicle registrations being electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. Californians have purchased more than 2 million electric cars, which is more than any other state. In 2024, California surpassed 2.2 million cumulative new EV sales, recording 2,213,296 million EVs sold by the end of the year, up from 1,769,922 in 2023. This marks 443,374 new EVs sold in 2024, a slight increase from the 441,283 sold in 2023.
However, California's surge in EV sales has stalled. Electric vehicle sales, which make up the majority of zero-emission cars, grew by only 1.1% in 2024, with 378,910 sold compared to 374,668 in 2023. Plug-in hybrids, once considered a potential alternative to purely electric models, remained relatively stable. Sales of hydrogen-powered cars all but collapsed last year, with sales plummeting to a meagre 600 in 2024 from 3,119 in 2023.
Loren McDonald, chief analyst for the charging app Paren, said a major contributor to the slow growth is a shift in consumer demographics. The state’s market has moved beyond early electric car adopters—affluent, environmentally motivated buyers willing to overlook challenges like limited charging infrastructure and higher costs—and into the mainstream. Affordability remains a crucial hurdle, though McDonald sees signs of improvement. Automakers have ramped up production, leading to competitive pricing and aggressive lease deals—many under $400 per month. But mainstream consumers are largely unaware that electric vehicles offer long-term savings in fuel and maintenance.
McDonald remains optimistic about 2025. The market will benefit from new electric models priced under $50,000 and technological advancements, such as faster charging and vehicle-to-home power capabilities.
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Tesla's market share
As of 2025, electric vehicles (EVs) are gaining traction in the United States, but they still have a way to go before they catch up to gas-powered vehicles, which make up the majority of the 288.5 million cars currently in operation. In 2023, there were about 3.3 million electric cars on US roads, a significant increase from the 2 million in 2022 and 1.3 million in 2021.
Tesla, a prominent transportation and energy company, has been a key player in the EV market. In the second quarter of 2024, Tesla's gross margin dropped to a new low after declining every quarter since Q1 2022. Despite this, as of May 2024, Tesla retained the biggest market share among all battery-electric vehicles (BEVs) sold worldwide, albeit slightly. Its market share had stood at 19% in the past year but dropped to 17% in the first five months of 2024. In the US, Tesla's EV market share fell to 44% in Q4 2024, down from 55% in 2023 and 62% in 2022.
In California, a crucial EV market, Tesla's dominance continues to slip. The company's registrations fell by 7.8% in Q4 2024, contributing to an overall 11.6% decline in 2024. Its market share in California dropped by 7.6 points in 2024, and it now holds 52.5% of the Zero Emission Vehicle (ZEV) market. Excluding Tesla, the California EV market grew by 20% in 2024.
While Tesla's performance in the broader market remains to be seen, there are indications that its position in California may weaken further. With Tesla leases ending and customers considering alternative options, the future of Tesla in the state may become more challenging.
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Electric vehicles in Europe
Norway, Sweden, and Iceland have the highest share of electric vehicles as a proportion of new car registrations, with 91%, 61%, and 60% respectively. Germany, France, and Norway accounted for about 54% of all new battery electric vehicle (BEV) registrations in the 32 EEA member countries. Germany has the largest stock of plug-in cars in Europe, with 1,184,416 plug-in cars in circulation on 1 January 2022, representing 2.5% of all passenger cars on German roads. The Netherlands, Germany, and France have the highest number of public charging points, with the Netherlands at 144,453, Germany at 120,625, and France at 119,255 as of the end of 2023.
There are several factors influencing the adoption of electric vehicles in Europe. Increasingly stringent regulations and emissions targets are driving the transition from combustion engines to electric vehicles. The EU has set targets to reduce new car emissions by 55% by 2030 and to achieve zero-CO2 emissions for new cars and vans by 2035. High purchase prices, insufficient battery driving range, and concerns about battery lifetime are some of the barriers to EV adoption. However, consumer purchasing habits and expectations are changing, and the overall EV outlook for Europe remains positive.
Tesla has made a significant impact on Europe's electric vehicle market, with the Model Y becoming the best-selling car in 2023, surpassing all other car categories. The UK has implemented the Zero-Emission Vehicle (ZEV) Mandate, which requires car manufacturers to sell a certain percentage of zero-emission vehicles, starting at 22% in 2024 and increasing to 100% by 2035. The resale value of electric cars in Europe has also been increasing, with the resale value of battery-electric cars sold after 12 months surpassing that of all other powertrains in mid-2022.
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Electric vehicles in Asia
Asia is a key market for electric vehicles, with East Asia alone accounting for 56% of the value of electric vehicle sales globally. China, in particular, is a significant player in this market, with sales of electric cars in the country expected to have a larger market value than the sales of e-bikes by 2022. This is due to the Chinese government's efforts to install adequate charging infrastructure and make electric cars more affordable. However, it is worth noting that most power stations in China are still inefficient and coal-fired, which could lead to a significant increase in global warming if a large number of people switch to electric cars.
Japan is also a notable market for electric vehicles in Asia, with the country buying the most hybrid cars globally. The Toyota Prius, the best-selling electric car in the world, sells in Japan at twice the volume sold in the USA. South Korea is another important market, with a total of 59,600 electric cars on the roads by 2018 and a market share of 2.21% for battery-electric and plugin-electric vehicles in the same year.
In Pakistan, local companies like Super Power Motorcycles and Neon have started introducing electric vehicle models. Notably, Jolta International created the first locally manufactured electric motorcycle in 2017.
Finland is also making strides in the electric vehicle market, with companies like Valmet Automotive, Fortum, Vacon, Ensto, and Elcat involved in next-generation vehicle manufacturing and research. As of December 2021, France had registered a total of 786,274 light-duty plug-in electric vehicles since 2010, including 512,178 all-electric passenger cars and commercial vans.
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Frequently asked questions
As of 2023, there were about 3.3 million electric cars on the road in the U.S. This number is up from 2 million in 2022 and 1.3 million in 2021.
The Tesla Model Y was the best-selling electric vehicle in the fourth quarter of 2024, making up 26.1% of new EVs sold. Tesla has a 56.5% market share for EVs sold in the United States.
In the first quarter of 2024, 7.9% of all new car registrations were for electric vehicles. In February 2025, the percentage of electric car sales was 7.9%.
