Electric car (EV) sales are growing faster than any other part of the auto industry for the first time ever.
- During the third quarter, Americans bought more than 200,000 EVs—a 67% increase over the same time period last year.
- Overall, new car sales fell 0.1%, auto industry company Kelley Blue Book reports.
- Tesla has lost market share, but still remains the most popular choice for an EV.
- The Tesla Model Y and Model 3 were the top two most popular models. Chevy Bolt EV and Bolt EUV took third place, the Ford Mustang Mach-E fourth, and Tesla Model S fifth.
Why it’s news
EVs still make up the smallest portion of vehicles on the road right now, but if the increase in sales is any indicator, that could be about to change.
Legislation from the Biden administration as well as policy changes in states like California and New York are motivating buyers and manufacturers to switch to electric.
Tesla is still the most popular EV, though its sales slipped during the third quarter. Nearly 64% of EV sales were attributed to Teslas—a decrease from 70% last year.
Sales of hybrid vehicles have been gradually declining. Toyota remains the top hybrid seller. Nearly half of hybrids sold in the U.S. were Toyotas.
Backing up a bit
New York Governor Kathy Hochul announced earlier this year that the state will require all new vehicles sold after 2035 to emit zero emissions.
Hochul had announced this deadline in 2021, but due to federal regulations New York had to wait for California to make its own law.
In addition to the ban on sales of gas cars, Hochul announced an expansion of New York’s EV rebate program—adding $10 million.
New York will also be receiving a total of $175 million in federal funding to expand its existing charging station network
California Governor Gavin Newsom originally announced a plan to phase out gas vehicles two years ago in an executive order, however recently announced percentage rules have set an established timetable for automakers to follow.
The Golden State’s plan will work by incrementally increasing the amount of new car sales required to be electric. Currently, 15% of new car sales in California must be electric. By 2026, that number will increase to 35% and 68% by 2030.