Market share continues to increase in the United States for electric vehicles.
With some states aiming to eliminate internal combustion engines and transition to all-electric vehicles, a report examines how close the United States is to achieving 50% adoption.
What Happened: As states like California look to phase out gas-powered automobiles in favor of electric vehicles, a new report from Recurrent Auto shows that the entire United States is on pace of hitting a critical 50% milestone by 2030.
The new report sees U.S. market share hitting 15% by the end of 2025, as reported by Teslarati. The 15% threshold could represent the mass adoption phase of electric vehicles.
Recurrent Auto cites the International Energy Agency in its report. The IEA expects U.S. electric vehicle sales to hit 9.5 million to 9.6 million units in 2030, up from a previous estimate of 8.3 million to 8.4 million units. The agency cites improving costs of electric vehicles and lowered battery costs as key reasons for the optimism for substantial growth in the sector.
States working on zero-emissions targets and improved tax credits are also listed as reasons for increased optimism for the electric vehicle market share improving over time.
Why It's Important: Teslarati notes that in 2022 Recurrent Auto predicted that the Tesla Model Y would become the bestselling vehicle in the world in 2023, a feat Tesla Inc TSLA accomplished.
The Model Y hit the impressive milestone as the first ever electric vehicle to be the bestselling vehicle globally in a year. The vehicle also become the bestselling electric vehicle of all time.
Benzinga previously reported that 1.2 million electric vehicles were sold in the U.S. in 2023, a figure that was up 46.3% year-over-year. Data showed electric vehicles hitting 7.6% market share of new vehicles sold in the country in 2023, compared to 5.9% in 2022.
In the fourth quarter of 2023, electric vehicles hit 317,168 units sold, setting a new volume record. The market share of EVs also hit a record 8.1% in the United States in the fourth quarter.
Tesla could stand to benefit the most from the optimism for electric vehicles in the U.S. in the coming years. Here were the top 10 bestselling electric vehicles in the U.S. in 2023 and their year-over-year change.
- Tesla Model Y: 394,497 units, +56.6%
- Tesla Model 3: 220,910 units, +4.4%
- Chevy Bolt EV: 62,045 units, +62.8%
- Ford Mustang Mach-E: 40,771 units, +3.3%
- Volkswagen ID.4: 37,789 units, +84.2%
- Hyundai Ioniq 5: 33,918 units, +47.6%
- Rivian R1S: 24,783 units, N/A (was 676 units in 2022)
- Ford F-150 Lightning: 24,165 units, +54.7%
- Tesla Model X: 23,015 units, -11.9%
- BMW i4: 22,583 units, +134.6%
Tesla dominated the U.S. electric vehicle market in 2023 with a 55% market share. This figure was down from the 65% share in 2022 and recent reports suggest the figure dipped below 50% in 2024. Tesla had three of the top 10 bestselling electric vehicles in the U.S. in 2023.
Ranking behind Tesla for U.S. electric vehicle sales in 2023 were Ford Motor Co F and General Motors Co GM -owned Chevrolet brand. Ford sold 72,608 units, which was up 17.9% year-over-year. GM's Chevrolet unit sold 62,988 EV units, which was up 65.2%
Rivian Automotive RIVN could also stand to benefit from the latest forecast with strong sales in 2023 and new models coming in the future. The company sold 50,189 units in the U.S. in 2023, which was up 143.3% year-over-year. The company saw its R1S rank seventh and the R1T ranked just outside the top 10 with 17,727 units sold.
Competition from other automotive companies, including Chinese owned brands, could hurt Tesla, GM, Ford and Rivian, but also comes with the market size expected to expand.
The U.S. hitting 50% market share for EVs in 2030 would serve as a huge milestone for the automotive industry both in the country and worldwide.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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