EV Statistics 2024 – MarketWatch

Electric vehicles (EVs) are becoming more common throughout the U.S., with millions now cruising on roadways alongside their gas-powered counterparts. As more companies join EV giants like Tesla, competition for the burgeoning EV market share is likely to intensify. For many domestic and foreign automotive manufacturers, there’s more at stake in pursuing alternative fuels than just breaking technological ground. 

We at the MarketWatch Guides team will uncover striking insights into the EV market, from competition among the most prominent stakeholders to the increasing market share. Our findings highlight the factors contributing to growing EV popularity and explore whether making the move away from gas-powered vehicles is a worthwhile investment.

Key Findings

• EV sales in the U.S. saw an increase of 60% year over year from 1 million in 2022 to 1.6 million in 2023.
• The U.S., Europe and China represent the three largest global markets in EV sales.
• Although there are many myths about how eco-friendly EVs really are, the overall carbon footprint of EVs is still smaller than those of gas-powered cars — even accounting for the carbon pollution that results from the manufacturing process and charging needs.
• California, Florida, Texas and Washington lead the nation with the highest numbers of EV registrations.
• Electric vehicles tend to have higher car insurance rates.

What Is an EV?

All-electric vehicles (also known as battery electric vehicles or BEVs) are powered by an onboard battery that stores electrical energy, according to the U.S. Department of Energy’s Alternative Fuels Data Center. Unlike conventional gas-powered or hybrid vehicles, EVs rely solely on electricity for propulsion. The Environmental Protection Agency (EPA) classifies EVs as zero-emissions vehicles due to the lack of exhaust or tailpipe emissions expelled. 

Rather than fueling, an EV requires its users to recharge its battery, similar to charging your smartphone, laptop or other electronic device. Current battery technology limits how far EVs can travel, especially compared to gas-powered vehicles. However, extensive research and development continue to identify methods to lengthen this range and improve efficiency to accommodate market demands.

How Many Electric Vehicles Are Sold in the U.S.? 

Electric car sales have taken off in the U.S. since 2020. About 1.6 million EVs were sold in the U.S. in 2023 — a 60% increase from the 1 million sold nationwide in 2022. The U.S. accounted for 9.7% of all new EV registrations worldwide in 2022. Globally, EV sales topped 10 million for the first time in 2022. In the first quarter of 2023, over 2.3 million electric vehicles were sold worldwide, a roughly 25% year-over-year increase.

China, Europe and the U.S. represent the three most significant global EV markets. Over half of 2022 EV sales were finalized in China, although the U.S. saw a 55% increase in sales that same year. A whopping $52 billion was sunk into North American EV supply chains between August 2022 and March 2023, according to the International Energy Agency (IEA). About half of the investment went to battery manufacturing, while an equal 20% went to both battery components and EV manufacturing. 

Many automakers have publicly announced their green intentions. For instance, Jaguar announced its aim for a full electric lineup by 2025. Mitsubishi joined in with goals of 50% electrification by 2030 and 100% just five years later. Some of the biggest hurdles continuing to delay or deter progress include supply chain constraints and volatility in critical mineral prices. However, EVs are set to replace 5 million barrels of oil used daily by 2030 at the current pace, according to the IEA. 

EV Market Share

As of October 2023, Tesla made up more than half of the U.S. EV market share. Chevrolet ranked as the second-largest EV brand in America at 5.9% market share, with Ford close behind at 5.8%. 

Volkswagen, Rivian, BMW and Mercedes-Benz EV registrations are rising, though Hyundai, Kia and Nissan are struggling to gain ground in the market, according to Automotive News. Experts point to recent changes in the EV tax incentive requirements, which limit eligible vehicles based on the manufacturer’s suggested retail price (MSRP) and the country of final assembly. However, non-Tesla EV registrations rose 151% in the first few months of 2023, while Tesla saw a drop in market share from 72% to 58% early in the same year.

Cheapest Electric Vehicles

The average price of a new EV comes in just under $60,000. Federal and state tax incentives also influence final EV ownership costs. Some of the most popular and affordable electric vehicles include: 

• Audi Q4 e-tron: Built off the ID.4 platform, the Q4 e-tron starts at just under $50,000 with a range of around 265 miles. 
• Chevrolet Bolt and Bolt EUV: Priced under $30,000, the Bolt EV and Electric Utility Vehicle (EUV) achieve a range exceeding 240 miles.
• Hyundai Kona Electric: Sales of this 258-mile range EV are limited to 12 states, with prices starting at $33,000. 
• Kia Niro EV: Priced near $40,000, the Niro EV claims a 250-mile range. Interiors also feature recycled wallpaper headliners and animal-free materials throughout. 
• Mazda MX-30: Complete with 100 miles of range, this Mazda’s base price hovers around $35,000. 
• Mini Cooper SE: For under $30,000, you can drive up to 110 miles with this electrified Mini.
• Nissan Leaf: One of the older EVs on our list, the Leaf makes it to nearly 150 miles of range. Prices start at just over $28,000. 
• Polestar 2: Starting at around $50,000, the Polestar 2 manages 270 miles of range.
• Tesla Model 3: At around the $40,000 mark, the Model 3 achieves 272 miles of range with the base rear-wheel-drive model. 
• Volvo XC40 Recharge: Equipped with a dual motor and all-wheel drive (AWD), the XC40 Recharge offers 223 miles of range starting at around $50,000. 

Are Electric Vehicles Better for the Environment?

Due to their lower emissions and energy efficiency, EVs are generally better for the environment and have a smaller carbon footprint than their gas-powered counterparts. Because there are many misunderstandings about how EVs work and their impact on the environment, the EPA recently dispelled some common EV myths:

• Myth: EVs are worse for the environment than gas-powered cars due to power plant emissions that result from the electricity needed to charge them. 

Fact: Producing EVs (specifically the battery) requires additional energy compared to what’s needed for a 12-volt battery. However, EVs claim zero tailpipe emissions and an overall smaller carbon footprint than their gas-powered siblings, including the electricity used during charging. 

• Myth: Carbon pollution created by EV battery manufacturing makes EVs more harmful to the environment. 

Fact: While EV manufacturing can create more carbon pollution than creating gas-powered vehicles, the overall carbon footprint of EVs is still smaller than those of gasoline cars — even accounting for the carbon pollution required during the manufacturing process.

Additionally, recycling EV batteries can reduce emissions by reusing materials and components. However, challenges remain in developing the technology necessary for efficient recycling practices. 

• Myth: The rise in EV charging threatens the stability of the U.S. power grid. 

Fact: Despite concerns of overloading the power grid, California claims charging more than 1 million EVs represents less than 1% of the grid load for the entire state, including during peak hours. Charging at night can help reduce the impact on the power grid, and it’s cheaper as well.

• Myth: There aren’t enough EV charging stations. 

Fact: Over 60,000 EV charging stations serve the entire nation, and they’re becoming more accessible thanks to government initiatives and the rise in EV popularity. EVs can also be easily charged at home. 

• Myth: EVs’ limited ranges aren’t enough for daily travel needs. 

Fact: The typical person drives less than 50 miles daily on average, but most EVs exceed 200+ miles in range. However, temperature fluctuations can reduce EV range by up to 40%. 

• Myth: EVs aren’t as safe as gas-powered cars. 

Fact: In light of the extreme power held within an EV battery, manufactured battery packs must meet specific standards, including safety features that render the electrical system harmless should a short circuit or impact occur. 

Who Is Adopting EVs?

California, Florida, Texas and Washington lead the charge in the number of total EV registrations. California accounts for 37% of that total, with 900,000 light-duty EV registrations in 2022 alone. However, a stark divide exists among states adopting all-electric vehicles and those that are not. 

In 2022, the states embracing the EV movement most with the highest numbers of EVs per 10,000 residents included: 

In contrast, the following states lack the same momentum: 

The National Renewable Energy Laboratory (NREL) estimates today’s EV batteries will last between 12 to 15 years in moderate climates or eight to 12 years in climates with extreme temperature changes. Most EV manufacturers offer an eight-year, 100,000-mile warranty on electric or hybrid batteries and related components, and aftermarket vehicle service contracts and extended warranties provide similar coverage. 

Concerns

However, certain doubts exist about the future of electric cars and what’s holding us back: 

• Despite sub-$70,000 sticker prices on most EVs and the promise of tax incentives, many consumers still find eco-friendly models out of their affordable price range. 
• EVs still represent evolving technology and many consumers remain unsure of how to address (and pay for) maintenance and repairs. 
• Range anxiety is real, especially as Americans drive farther and put thousands more miles on their cars yearly. 
• Drivers anticipate lines at the gas station, but a lineup at the EV charging station could spell a run on electricity and spikes in charging costs. 
• A more comprehensive charging infrastructure is necessary. Running out of gas in the middle of nowhere is one thing, but a powerless EV can quickly leave you stranded with no charging station for miles. 

For many, EVs have quite a bit of ground to make up in proving their worth and earning a place in the family garage. All benefits aside, cost can deter even the most eco-conscious consumers with an eye on their bottom line.