25% of Americans want an EV for their next car, shows study
New evidence for the growth of the electric vehicle market has come, this time in the form of a study that shows more Americans are electrifying their rides than ever. This market’s growth stands to majorly benefit EV giant Tesla, along with other EV-only automakers.
A new survey from the American Automobile Association (AAA) shows that 25 percent of U.S. residents “likely to buy an electric vehicle (powered exclusively by electricity, i.e., not a hybrid) for their next auto purchase,” according to a report from Barron’s. For millennials, the study says, that number is as high as 30 percent.
The shift is expected to benefit automakers including Tesla, Rivian and Lucid Motors among other U.S.-based EV manufacturers. It’s also expected to benefit legacy automakers such as Ford and General Motors, which have recently released their first few EVs. As for why buyers are looking to go electric, the number one reason cited for considering an EV was saving money on gas.
“The increase in gas prices over the last six months has pushed consumers to consider going electric, especially for younger generations,” said AAA Director of Automotive Engineering and Industry Relations Greg Bannon. “They are looking for ways to save, and automakers continue to incorporate cool styling and the latest cutting-edge technology into electric vehicles, which appeal to this group.”
In 2021, battery-electric vehicle penetration throughout the U.S. market was just 3 percent, though it’s expected to rise in 2022. By comparison, Europe’s BEV penetration rate reached around 11 percent as of May 2022, while China’s penetration of BEVs was over one-quarter of new car sales.
Plainly said, the U.S. has some room for the EV market to grow.
While it may be growing more slowly than in other countries, the U.S. EV market share is growing, too. This is evidenced by Tesla’s new Gigafactory Texas, and over $400 billion spent by companies like Ford and GM to ramp up EV efforts.
The study painted a positive picture for EV enthusiasts and automakers, though it also mentioned a few consumer concerns with the emerging tech. For one, around 60 percent of users mentioned worries about a lack of charging infrastructure resulting in some level of range anxiety.
As the U.S. EV market continues to grow, so too will the charging infrastructure keeping vehicles fueled, and the technology for increasing battery range. Even with increasing competition, Tesla leads the race into a new, electric age for automobiles.
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Source: Barron’s
