Once considered a futuristic dream, electric vehicles have become a reality on the road. 2023 was a record year for EV sales in the United States, with more than 1 million sold, according to Cox Automotive.
As electric vehicles become more common, it’s helpful to understand the changing EV landscape. We explore trends in the EV market and which EVs are most affordable to purchase.
- China, the United States and Europe represent the largest markets for electric vehicles.
- California, Texas, Florida, and Washington lead the U.S. in EV registrations.
- Some vehicle companies are going all-in on EVs, with plans to exclusively sell EVs in the coming decades.
What is an electric vehicle?
An electric vehicle uses an electric motor and battery to run instead of the more familiar gasoline or diesel engine. In order to generate movement, drivers must charge their EV’s battery.
In contrast, popular plug-in hybrid electric vehicles use a battery and electric motor in combination with a standard gasoline or diesel-powered engine. The combination lowers the gasoline or diesel necessary to operate the vehicle.
Check out CarInsurance.com’s survey on electric vehicles
Electric vehicle sales trends in the U.S.
Electric vehicles have been available for purchase for a while, but they have exploded in popularity since 2020, according to Statista. According to the International Council on Clean Transportation, EV sales have increased every quarter since the third quarter of 2021.
In 2022, 980,000 EVs were sold in the United States. In 2023, that number jumped to 1 million. The table below highlights EV sales in the U.S. from year to year.
| Year | Sales |
|---|---|
| 2023 | 1 million |
| 2022 | 980,000 |
| 2021 | 660,000 |
| 2020 | 320,000 |
| 2019 | 310,000 |
Source: Statista
Popular EV models and their market share
Some EV makes and models are more popular than others. Tesla’s Model Y and Model 3 are the most popular EVs, followed by the Ford Mustang Mach-E. The table below highlights the market share of popular EV models in the U.S.
| Model | Units Sold in 2022 |
|---|---|
| Tesla Model Y | 251,974 |
| Tesla Model 3 | 211,618 |
| Ford Mustang Mach-E | 39,458 |
| Chevrolet Bolt | 38,120 |
| Tesla Model S | 32,675 |
| Tesla Model X | 26,121 |
| Hyundai Ioniq5 | 22,982 |
| VW ID.4 | 20,511 |
| Kia EV6 | 20,498 |
| Rivian R1T | 17,426 |
Source: EnergySage
Electric vehicle adoption in the United States
More EVs are hitting the road in some states than others. It makes sense that the highest number of EV registrations matches up with states that have a larger population.
California ranks first for EV adoption, with an average of 25.02 EVs per 1,000 vehicles on the road. After the Golden State, Washington, D.C. boasts an average of 18.47 EVs per 1,000 vehicle registrations. Although other states like Florida and Texas rank at the top for the number of EVs registered, these vehicles make up less than 10% of registered vehicles in those states.
The table below shows the number of EV registrations in states where EVs are more popular.
| State | EV registration |
|---|---|
| California | 1.2 million |
| Florida | 254,000 |
| Texas | 230,000 |
| Washington | 152,000 |
Source: Alternative Fuels Data Center
Top EV manufacturers in 2024
Some EV manufacturers are more prevalent than others. The top company is Tesla, with more than 80% of the market share. The next most popular companies, including Ford, Chevrolet and Hyundai, each take up between 2% and 3% of the market share.
The table below breaks down the market share by manufacturer in the United States.
| Manufacturer | Market share (%) |
|---|---|
| Tesla | 49.7% |
| Ford | 7.2% |
| General Motors | 6.6% |
| Nissan | 2.2% |
| Volkswagen | 3.6% |
| Hyundai | 11.2% |
| Mercedes-Benz | 2.8% |
| Toyota | 3.5% |
| Subaru | 1.3% |
| BMW | 4.3% |
| Jaguar | 0.4% |
| Rivian | 4.2% |
| Lucid | 0.6% |
| Vinfast | 0.3% |
| Volvo | 0.7% |
Source: Car Edge
What are the cheapest electric vehicles to purchase?
Electric vehicles will save you from the cost at the pump. But all EVs aren’t necessarily cheaper than their gas-powered counterparts. The good news is that some EVs are cheaper than others. Below is a look at some of the cheapest electric vehicles on the market today.
- Nissan Leaf
- Mini Cooper SE Hardtop
- Hyundai Kona Electric
- Hyundai Ioniq 6
- Tesla Model 3
- Kia Niro EV
- Nissan Ariya
- Volkswagen ID.4
- Ford Mustang Mach-E
- Hyundai Ioniq 5
- Chevrolet Equinox EV
Of course, opting for a basic EV with fewer bells and whistles will lower the price point. Also, remember to shop around to find the more affordable option that suits your needs.
Environmental impact of electric vehicles
Many drivers switch to electric vehicles to reduce their negative environmental impact. According to the EPA, here are some of the ways electric vehicles impact the environment.
- Reduced tailpipe emissions. EVs have no tailpipe emissions, which is an improvement over gas-powered vehicles. It’s worth noting that the electricity used to charge an EV may create carbon pollution, but this varies based on the source of the electricity.
- Improved air quality: EVs can reduce pollutants like nitrogen oxides that contribute to smog and particle pollution.
- Reduced climate pollution: EVs have less climate pollution than gas-powered vehicles.
Although EVs have positive environmental benefits, the industry also faces issues. For example, the conditions under which necessary battery components—such as cobalt and lithium—are mined are problematic. Additionally, the recycling of lithium-ion batteries has yet to be efficiently resolved.
How EVs help you save money over time compared to traditional vehicles
“EVs can significantly reduce your fuel expenses,” says Rob Dillan, co-founder of EVhype. “On average, charging an EV costs about half as much as fueling a traditional gasoline vehicle.”
Beyond lower fuel costs, EVs can save you on your tax bill.
“One major way an electric vehicle (EV) can save you money is through the Inflation Reduction Act,” says Chad Gammon, CFP and owner of Custom Fit Financial LLC. “If you qualify, you may receive a credit of up to $7,500 for a new EV or $4,000 for a used one. I recommend checking the IRS website for the most current details: IRS Clean Vehicle Tax Credits.”
Learn about the cost of electric car insurance
Frequently ask questions
How much can I save on fuel costs by switching to an EV?
Depending on your situation, you can expect to spend around 60% less per year on fuel costs when you switch from a gas-powered vehicle.
Which regions are leading in EV adoption?
California, Texas and Florida have the most registered EVs on the road today, according to the Alternative Fuels Data Center. But EVs make up at least 10% of vehicles on the road in California, the District of Columbia, Washington, Oregon, Colorado, New Jersey, Nevada, Massachusetts, Maryland, Hawaii, Vermont and Connecticut, according to the Alternative Fuels Data Center.
How many electric vehicles have been sold in the U.S. in 2024?
Between January and June 2024, the total number of EVs sold in the U.S. was 716,834, according to the Joint Office of Energy and Transportation.
Resources & Methodology
Sources
- Bureau of Transportation Statistics. “Hybrid-Electric, Plug-in Hybrid-Electric, and Electric Vehicle Sales.” Accessed October 2024.
- Mitsubishi. “Momentum 2023.” Accessed October 2024.
- U.S. Department of Energy. “Electric Vehicle Definition.” Accessed October 2024.
- IEA 50. “Electric Vehicles.” Accessed October 2024.
- Statista. “Electric Vehicles.” Accessed October 2024.
- Cars. “11 Cheapest Electric Vehicles You Can Buy.” Accessed October 2024.
- Edmunds. “EV Sales.” Accessed October 2024.
- Kelley Blue Book. “10 Most Popular Electric Cars.” Accessed October 2024.
- EPA. “Electric Vehicle Myths.” Accessed October 2024.
- New York Times. “How Green Are Electric Vehicles?” Accessed October 2024.
- Department of Energy. “Alternative Fuels Data Center.” Accessed October 2024.
- APM Research Lab. “Lithium mining for EVs: How sustainable is it?” Accessed October 2024.
- Ride and Drive Electric. “Joint Office of Energy and Transportation” Accessed October 2024.
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