Wiktor Wise
Electric vehicles (EVs) are seen as a way to reduce greenhouse gas emissions and address climate change. While EV ownership in the US is on the rise, the percentage of Americans who own one remains low at 4-7.9%. The higher purchase price of EVs compared to traditional vehicles is a significant factor in this, with 72% of Americans agreeing that EVs require a bigger upfront investment. This is reflected in the fact that Americans with higher incomes are more likely to own or consider owning an EV. However, other factors such as the availability of public charging stations and reliability concerns also play a role in the slow adoption of EVs in the US.
| Characteristics | Values |
|---|---|
| Number of electric vehicles on the road in 2023 | 286 million |
| Percentage of electric vehicles on the road in 2023 | 9.3% |
| Electric vehicle market share in the U.S. in May 2024 | 6.8% |
| Plug-in hybrid vehicles market share in May 2024 | 1.7% |
| Combined market share of electric and plug-in hybrid vehicles in May 2024 | 8.5% |
| Percentage of electric vehicles sold in the U.S. in 2023 | 7.6% |
| Number of electric vehicles sold in the U.S. in 2023 | 1.2 million |
| Number of electric vehicles sold in the U.S. in 2024 | 1.3 million |
| Electric vehicle market share in the U.S. in Q4 2024 | 8.7% |
| Percentage of electric vehicles sold in the U.S. in Q4 2024 | 8.1% |
| Number of electric vehicles sold in the U.S. in Q4 2024 | 365,824 |
| Tesla's market share in the U.S. in Q4 2024 | 44% |
| Tesla's market share in the U.S. in June 2024 | 52% |
| Tesla's market share in the U.S. in 2Q24 | 48.9% |
| Number of light-duty electric vehicle registrations in California as of December 31, 2023 | 1,256,646 |
| Number of light-duty electric vehicle registrations in Florida as of December 31, 2023 | 254,878 |
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What You'll Learn
- Electric vehicle ownership in the US is increasing, but demand is contracting
- Income and age are factors in who buys electric vehicles
- Americans are split on whether electric vehicles are better for the environment
- Electric vehicles are more expensive than gas-powered vehicles
- Public charging stations for electric vehicles are limited in the US
Electric vehicle ownership in the US is increasing, but demand is contracting
Electric vehicle (EV) ownership in the US is on the rise, with 7% of Americans reporting that they own an electric vehicle, up from 4% a year ago. This increase in EV ownership is not limited to a particular age group, with 8-10% of Americans across age groups owning an EV, except for older Americans, among whom ownership is 3%. However, despite the increase in EV ownership, public demand for these vehicles has contracted.
The higher purchase price of EVs compared to traditional gasoline-powered vehicles is a significant factor influencing demand. Industry data shows that the average EV still costs more than its gasoline counterpart, although the gap is narrowing. This higher upfront cost is a deterrent for many potential buyers, especially those in lower-income groups. In fact, 61% of lower-income Americans say they would not buy an EV, up from 43% in 2023, the biggest increase among major subgroups.
Another factor contributing to the contracting demand is the perception of reliability. Half of Americans believe that electric vehicles are less reliable than gas-powered cars, with only 9% considering EVs more reliable. Additionally, concerns about the availability of public charging stations and their reliability are also influencing demand. Most EV owners currently charge their vehicles at home, and the limited public charging infrastructure is seen as a potential obstacle to wider EV adoption.
While the number of EV owners is increasing, the percentage of those seriously considering buying an EV has declined from 12% to 9%, and fewer Americans say they might consider buying an EV in the future (35% in 2024, down from 43% in 2023). This contraction in demand has led some auto companies to reduce their electric vehicle investments, as EV market growth has not met expectations.
Despite the overall contraction in demand, it is worth noting that adults who currently own a hybrid or electric vehicle are more likely to consider an EV for their next purchase, with 68% saying they are very or somewhat likely to do so. Additionally, among those who would consider an EV, 72% cite helping the environment and 70% mention saving money on gas as major reasons for their choice.
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Income and age are factors in who buys electric vehicles
Income and age are significant factors in determining who buys electric vehicles in the United States. While electric vehicle (EV) ownership is generally similar across age groups, older Americans are less likely to own or consider buying an EV than their younger counterparts. People under 40 are more likely to want to purchase an electric car, but those over 40 tend to have more purchasing power and are more likely to buy a new, expensive car, such as an electric vehicle.
Income plays a crucial role in EV purchasing decisions. The higher purchase price of EVs compared to traditional gasoline-powered vehicles makes them less accessible to lower-income buyers. In 2024, 61% of lower-income Americans stated they would not buy an EV, an increase from 43% in 2023. In contrast, 11% of upper-income Americans are more likely to consider buying an EV. This disparity in interest and purchasing power influences the EV market and the demographics of EV buyers.
Age also influences the EV market. Younger people tend to be more interested in electric vehicles, but they may face financial constraints that limit their purchasing power. As they age and their financial situation improves, their interest in EVs may translate into actual purchases. This shift in buying behaviour could significantly impact the EV market in the coming years.
Additionally, seniors who are considering purchasing an EV have different priorities and requirements. They often look for affordability, comfort, ease of use, and practicality. Some older drivers may also have concerns about the technology in EVs, preferring familiar features and designs. The National Highway Traffic Safety Administration notes that age-related changes in physical and mental abilities, driving behaviours, and crash risks should be considered when designing roads, vehicles, and controls. As a result, some EVs, like the Tesla Model 3, may be seen as too technologically advanced for older drivers.
In summary, income and age are key factors in the EV market in the United States. While younger people may express more interest in EVs, their purchasing power may be limited. Older individuals, despite having higher purchasing power, tend to show less interest in EVs. However, as younger generations age and their financial situations improve, they are expected to drive future growth in the EV market.
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Americans are split on whether electric vehicles are better for the environment
Electric vehicles (EVs) are seen as a way for the US to reduce greenhouse gas emissions and combat climate change. However, Americans are divided on whether EVs are better for the environment.
As of 2024, 7% of Americans own an electric vehicle, up from 4% in 2023. However, there has been a decline in the percentage of Americans seriously considering buying one, from 12% to 9%. The main reasons for purchasing an EV are to help the environment (72%) and save money on gas (70%). However, the higher purchase price of EVs compared to traditional gasoline-powered vehicles is a barrier for many potential buyers. Lower-income Americans are the least likely to purchase an EV, with 61% saying they would not buy one. This is likely due to the higher upfront cost of EVs.
Public opinion on the environmental benefits of EVs is split. While EVs have no tailpipe emissions, some emissions are created in the process of building and charging the vehicles. The emissions associated with EV charging depend on the energy sources used in a particular region. In countries that rely heavily on coal for energy, EVs may have similar or only slightly lower emissions than gasoline-powered cars. However, in countries like Norway, which uses hydropower for most of its energy, EVs have a much lower carbon footprint. Overall, research suggests that EVs are typically responsible for lower levels of greenhouse gas emissions than new gasoline cars.
The idea of phasing out gas-powered vehicles by 2035 is opposed by a majority of Americans (59%), while only 40% favor it. This opposition is seen across political parties, with 84% of Republicans and 36% of Democrats against the idea. While EVs may not be a perfect solution to the environmental impact of cars, they are generally considered a step in the right direction. However, some critics argue that reducing the need for personal vehicles and improving public transportation should be a higher priority than promoting EVs.
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Electric vehicles are more expensive than gas-powered vehicles
Electric vehicles (EVs) are seen as a way to reduce greenhouse gas emissions and combat climate change. While there are environmental and economic incentives to purchase an EV, they are often more expensive than traditional gas-powered vehicles.
The higher purchase price of EVs compared to traditional gasoline-powered vehicles is a significant factor in consumers' decisions. This is reflected in the decline in the percentage of Americans seriously considering buying an EV, despite an increase in EV ownership. The much higher purchase price of EVs can be a barrier, particularly for lower-income Americans.
The cost of powering an EV compared to a gas-powered vehicle is a complex issue. Several factors, such as electricity prices, gas prices, vehicle efficiency, and charging infrastructure, influence the overall fueling costs. Some studies indicate that EV owners may experience higher costs to power their vehicles than filling up their gas-powered equivalents. For example, a mid-sized gas-powered car owner would use $11.08 worth of gas to travel 100 miles, whereas an EV owner charging at home would pay $12.62 for the same distance. However, this calculation assumes that only a fraction of EV owners take advantage of discounted off-peak charging rates and rebates for installing home chargers.
In contrast, other studies and reports suggest that EVs offer significant savings over the long term. A 2020 study by the Department of Energy concluded that EV owners could save $14,500 in fuel costs over 15 years compared to gas-powered vehicles. Additionally, EVs have lower maintenance costs, as they do not require oil changes or spark plug replacements, and they have regenerative braking, reducing the need for brake pad replacements. The University of Michigan's Transportation Research Institute found that the average cost to fuel an electric car annually was $485, compared to $1,117 for a gas-powered car.
While the upfront cost of purchasing an EV may be higher, the price margin between EVs and gas-powered vehicles is expected to shrink in the coming years. Automakers have been reducing EV prices, and federal and state incentives are available for eligible buyers, making EVs more affordable. As the market grows and manufacturers produce more affordable models, the cost of battery technology, currently the most expensive part of an EV, is also expected to decrease.
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Public charging stations for electric vehicles are limited in the US
Electric vehicle (EV) ownership in the US has been on the rise. In May 2024, the percentage of electric cars in the US was 6.8%, an improvement of 1.6 percentage points from 2022. However, one of the main obstacles to wider EV adoption is the availability of public charging stations.
As of February 2024, there were over 61,000 publicly accessible electric vehicle charging stations in the US, a more than twofold increase from 2020. This means there is one public charging port for every 29 EVs in the country. However, this ratio varies by state, with California, which has the most charging stations, ranking 49th in terms of the ratio of ports to EVs. Other states, such as Wyoming, North Dakota, and West Virginia, have more favourable ratios due to the smaller number of EVs registered in these states.
Public charging stations are more accessible to residents of urban areas, with 60% living less than a mile from the nearest public EV charger, compared to 41% in the suburbs and only 17% in rural areas. This disparity in access has been a focus of recent legislation, with the US government launching the National Electric Vehicle Infrastructure Formula Program to expand the public charging infrastructure. The Biden-Harris Administration has also invested in creating a more accessible national charging network, with the number of publicly available EV chargers doubling since its start.
Despite these efforts, public charging stations for electric vehicles remain limited in the US. A Pew Research Center survey found that only 17% of US adults are confident in the country's ability to develop the necessary infrastructure to support large numbers of EVs. This lack of confidence is reflected in the decline in the percentage of Americans seriously considering buying an EV, dropping from 12% to 9% in 2024. The higher purchase price of EVs compared to traditional gasoline-powered vehicles is also a factor in the decreased demand.
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