Why it matters: The data reveals a growing embrace of electric cars as automakers and the federal government pour billions of dollars into
EV and battery production.
What's happening: Axios is tracking the historic shift away from gasoline by examining vehicle registration data from S&P Global Mobility. Here's a peek at the latest data:
- Roughly two-thirds (65.3%) of EV-owning households that bought a new car in 2022 got another electric.
- That's up sharply from the second quarter of 2021, when about 48% of EV-owning households in the market for a new car bought another EV.
- The trend has been consistent throughout 2022, notes Tom Libby, associate director of industry analysis at S&P Global Mobility.
- "To me, that's a very positive sign about the future of EVs," he tells Axios.
The big picture: The U.S. lags China and Europe when it comes to EV adoption, but the market is clearly shifting.
- Consumers have lots of options to choose from these days, and more affordable models are on the way.
- General Motors, for example, is introducing an electric version of its top-selling Chevrolet Equinox SUV with a roughly $30,000 base price.
- Every segment of the vehicle market is going electric: cars, SUVs, pickup trucks, and delivery vans.
- The number of EV models available in the U.S. jumped from 27 in July 2021 to 45 a year later. That number is expected to reach almost 150 by 2025, per S&P Global Mobility.
Where it stands: Tesla's Model Y and Model 3 continue to dominate. Those two models alone accounted for 51% of all new EV registrations in July (the latest available month).
- And Tesla brand loyalty is through the roof, notes Libby — 91% of Tesla owners who bought another EV opted for another Tesla.
- "That's an amazing statistic," says Libby. "Not only are they selling a lot, they’re keeping the owners. That’s a very powerful combination."
Yes, but: As rivals introduce new models, Tesla's U.S. market share will inevitably shrink as the overall pie grows. In fact, that's already happening.
- Tesla had 81% of the EV market at the beginning of 2019; today it has less than 60%.
- Tesla's third-quarter deliveries fell short of expectations due to what the company blamed on logistics challenges, but some investors are worried about slowing demand.
Between the lines: EVs accounted for 5.8% of all new cars registered nationally in July, up from 3.4% a year ago.
- California remains the leading U.S. electric car market. In San Francisco, EVs accounted for a third of all July registrations.
- Texas is also seeing strong EV growth in places like Austin and Dallas, where EVs accounted for 9.6% and 8.6% of July new car registrations, respectively.
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