The first half of 2021 saw record sales of electric vehicles, according to the just released EVAdoption report, US Electric Vehicle Sales Report: 1H 2021. From January 1 to June 30, 2021 an estimated 291,933 BEVs and PHEVs (plug-in electric vehicles) were purchased, roughly 30,000 below the 320,000 average for the full years of 2018-2020.
While EVs from the legacy automakers as of yet don’t match the range and performance of those from Tesla, those and other advantages from Tesla are simply not as important to huge segments of car buyers. Following are a few steps legacy automakers and dealers (that are actually trying to sell EVs) need to do to help counter the Tesla narrative that has created various expectations by consumers when considering an EV.
Lower battery prices and electric vehicles reaching price parity will be key enablers to driving mass adoption of EVs in the US. But battery and model supply along with ubiquitous charging and consumer comfort with electric refueling are bigger factors that will limit growth in EV sales in the US in the near term.
GM has promised “30 new EVs by 2025” – what does this mean for the US EV market? Actually, not a whole lot.
The biggest hurdle to adoption of electric vehicles in the US remains supply, as 42% (14 out of 33) of legacy automaker brands that have vehicles for sale in the US – still do not offer an EV (either BEV or PHEV) for sale in the world’s second largest auto market.
Sales of electric vehicles will return to positive growth in 2020, with a forecasted volume of new BEV and PHEV sales of 388,880.
Which EV models will likely be the top sellers in 2021 and 2022 and drive the EV sales back to a significant rate of growth?
The media and Tesla shorts and haters love to tout every new BEV that comes to market as the latest “Tesla Killer.” That moniker usually has little basis in reality, but is simply used by headline writers to attract eyeballs and haters and shorts to rally the bearish story on Tesla.
States with a higher number of EV models available average an EV sales share of 10 times greater than those with many fewer models.
Supply: Model Availability and Price Discrepancy Between EVs and ICE Vehicles Remain a Top Hurdle to Mass Adoption in the US
Two fundamental hurdles to mass adoption of EVs are: 1) The lack of choice and availability of EV models, especially in certain categories; and 2) The price differential between EVs and gas/diesel-powered vehicles.