Four Things Will Drive Mass EV Adoption in America

EV adoption in the United States is moving fast. In 2023, The Tesla Model Y was the best-selling car in the world, a first for any electric vehicle. The Model Y also made #5 on the list of the top-five selling internal combustion engine (ICE) vehicles, hybrids, and battery-electric vehicles (BEVs) in the U.S. in 2023, according to Kelley Blue Book (KBB). Cox Automotive, KBB’s parent company, predicts EV adoption in the U.S. will reach 10% in 2024. The historic one million sold mark in the U.S. was passed for EV adoption in December 2023, for the first time. It’s an exhilarating time for those of us in the EV industry.

Why the EV Revolution is Moving Slower Than it Should

However, the picture isn’t entirely rosy. A wide variety of barriers are preventing American buyers from driving electric. Many people want to go electric, but the barriers are proving too significant to pull it off this year. One can’t blame the average American driver too much, as the move from gas-powered ICE vehicles to EVs can be difficult. Americans are used to refueling in under five minutes at gas stations and balk at the prospect of waiting up to 20 minutes to recharge at a public EV charging station. When they cannot charge at home, the most convenient form of charging, the prospect of driving an EV becomes even more unlikely.

EV adoption Barriers

Lack of charging availability, reliability issues, connector compatibility issues, lack of multifamily charging, and high vehicle prices are the main barriers to American EV adoption in 2024.

Public Charging Availability

Public EV charging station availability was greatly boosted in 2021 with the federal government’s $1.2 trillion Infrastructure Investment and Jobs Act (IIJA). This included the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program. NEVI funds are used to build EV charging stations on Alternative Fuel Corridors, major artery freeways, and roads that connect the states. This reduces “range anxiety,” the fear of EV drivers running out of charge before reaching a charging station.

EV Charging Station Reliability

Because reliability standards were not introduced in the early days of the EV revolution, many charging stations are now out of service, causing frustration for EV drivers. Some EV charging apps, such as Chargeway, the leading app for finding EV charging locations, will show drivers when stations are out of service. This saves time and prevents the frustration of showing up at a location to charge but being unable to because the charger isn’t working.

Matt Teske, CEO of Chargeway, said: “Chargeway shows multiple station statuses, including Online, Offline, Busy, and Coming Soon. We also clearly show if a station is Restricted, and if it is non-network, we advise users to Call Ahead to ensure the station is active. When using Chargeway, simply tapping a map pin will reveal the status of the station. But if a station is completely out of service, it is shown in grey on the map as well.”

Connector Compatibility

Tesla’s North American Charging Standard (NACS) charge port will be the new standard for EV charging connectors. Every major original equipment manufacturer (OEM) in the US has reported that they will include NACS in future EVs. The two kinds of charging ports, the Combined Charging System (CCS) and NACS, have caused great confusion and a wide variety of problems for EV drivers. These problems have occurred chiefly at public charging stations, with drivers unable to charge because they do not have an adapter.

Adapters allowing Teslas to charge at non-Tesla stations and drivers of non-Tesla EVS to charge their EVs at Tesla Supercharger stations have become very widespread. This barrier will resolve over time, but the existing CCS-equipped vehicles will be around for a while, and EV charging station owners need to plan for that, whether they are public or private chargers. Examples of a private charger would be at a workplace or hotel.

EV Adoption Barrier: Multifamily EV Charging

Few multi-unit dwellers in America can currently charge their EVs at home. The lack of Multifamily EV Charging is a significant barrier to EV adoption, as charging at home is the most convenient and usually the lowest-priced option. The National Association of Home Builders reported that American multifamily housing comprised 31.4% of housing in 2019. Nearly a third of all Americans can’t charge at home since only a fraction of multifamily housing units currently offer EV charging.

Single-Family Homeowners Have the Most Convenient EV Charging Option

The majority of drivers who have already adopted electric vehicles are single-family homeowners. This is because home charging is the most convenient type of EV charging.

High EV Prices

High EV prices are a significant barrier to adoption. This is making EV ownership unattainable for many Americans. Kelley Blue Book stated that the average price for a new electric car was $50,798 in December 2023. KBB’s report listed the average selling price for a new vehicle, whether an EV, hybrid, or an internal combustion engine (ICE), as $48,759. These prices are way too high for most Americans to consider driving EVs.

When released, the 2024 Chevy Equinox EV could be the lowest-priced new electric vehicle (EV) available in the U.S. in 2024. It is expected to qualify for the federal tax credit of $7,500, which drops the entry price of the 1LT model Equinox to as low as $27,495.

Used EVs are Growing as an Option

Used EVs are an option for many drivers because of lower prices, and they are increasingly popular with those buyers previously only looking at new vehicles. In 2024, the average cost for the 2017 to 2019 Tesla Model 3 has fallen below $30,000. Recurrent, the leader in used EV analytics, provided statistics for the used EV market in the United States in the Used Electric Car Prices & Market Report — Q1 2024. The company said that 2024 used EV sales volume will increase by roughly 100% over 2022 and 40% over 2023.

The Federal EV Tax Credit

The federal EV tax credit has significantly boosted new and used EV adopters, as the credits converted to a point-of-sale discount in 2024, significantly increasing sales. Buyers may qualify for a credit of up to $7,500 if the buyer purchases a new, qualified plug-in hybrid electric vehicle (PHEV) or EV. If a buyer buys a qualified used electric vehicle from a licensed dealer for $25,000 or less, the buyer may claim 30% of the sale price up to a maximum credit of $4,000.

Four Things Will Drive Mass EV Adoption

Four things that will drive mass EV adoption in America are:

• Lower vehicle prices and cost of ownership, more incentives
• A larger selection of available EV models.
• Removing the EV charging barriers.
• Releasing massive education for buyers and dealers.

Lower Vehicle Prices

High vehicle prices have been a problem from the beginning of the American EV revolution. Many more low-priced models are needed. China accomplished this by directly subsidizing its EV companies. The U.S. could take a similar tactic.

The threat of low-priced Chinese EVs is prompting moves from all OEMs to make lower-priced EVs. A compelling example is the BYD Seagull, a compact Chinese EV with a starting price of approximately $11,400. Including America’s current 27.5% import tariff on Chinese vehicles, the BYD Seagull would still dramatically undercut U.S. EV prices at less than $15,000.

Tesla CEO Elon Musk said low-priced Chinese EVs may demolish competitors in the U.S. market and announced a plan to produce the low-priced Tesla model that had been delayed several times. The low-priced model is tentatively named the Model 2, and is rumored to have a starting price of $25,000. Ford announced in February 2024 that a small “skunkworks” Ford team was working on a small, low-cost platform for producing low-cost Ford EVs for the last two years. GM ended production of Chevy’s low-priced EV, the Bolt, at the end of 2023. Updated Bolt models will become available in 2025. Chevy’s Equinox EV could be America’s most affordable EV in 2024. If it qualifies for the entire EV tax credit, this will drop the entry price of the 1LT model for eligible buyers to as low as $27,495.

Lower Cost of Ownership

A lower cost of ownership for EVs can be accomplished in many ways. One example is utility incentives, such as WeaveGrid’s partnership with Toyota Motor North America to implement direct integration for Toyota and Lexus BEVs (battery electric vehicles) and plug-in hybrid electric vehicles (PHEVs). Baltimore Gas & Electric customers in Maryland who participate in WeaveGrid’s EVsmart program enjoy access to discounted charging rates. This can lead to an approximate annual saving of $150.

In 2023, the government of Norway reached the impressive goal of 82% of all new car sales being EVs. The U.S. could implement more programs similar to Norway’s. Offering free toll road access, free ferry rides, and free municipal parking to EV drivers is one way Norway decreased costs of ownership for EV drivers. U.S. states could waive all DMV fees for EV drivers, as another possible incentive.

More Models

CNET said there were over 40 electric car, truck and SUV light-duty models on sale in the US in 2023. The selection of available EVs is far lower than the huge selection of ICE vehicles. Tesla has dominated the American market so far, but offers only a small number of vehicles. More choices, especially low-priced choices, are needed to really jump-start adoption. American consumers are used to, and want a large number of choices for everything, including vehicles.

Solving EV Charging Barriers

Billion-dollar funding releases from the Federal Government are addressing EV charging barriers. Charging availability is quickly being resolved, with the first NEVI-funded EV charging station opening in Ohio in December 2023. Connector compatibility issues remain but are being resolved as more drivers become familiar with the differing CCS and NACS connections. Ford promised to send its customers adapters free of charge in February 2024.

Charging station reliability is being addressed. The federal government recognized the problem with charging station reliability, and federal funding came in January 2024 to address this in the form of the $150M Electric Vehicle Charger Reliability and Accessibility Accelerator Program. Standards for reliability are a part of the funding.

Massive Education for EV buyers and Dealers

A large part of the reason the EV revolution isn’t moving as fast as it should be is education. American drivers are not aware of the many benefits that EVs provide. For example, EVs have fewer moving parts, making maintenance easier and cheaper. EVs have several advantages over conventional gas-powered vehicles. Regarding energy efficiency, EVs use over 77% of their electrical energy to power the wheels. Conventional gasoline-powered vehicles only convert about 12% -30 % of the energy stored in gasoline to power the wheels. Regenerative braking in EVs uses energy created by the friction from applying the brakes to add to the EV’s battery, further enhancing efficiency. Consumers also need to be made aware that electricity costs less than gasoline, even when gasoline prices are at their lowest levels.

The environmental benefits of EVs are well documented. EVs have zero emissions, unlike the carbon emissions from gas-powered ICE vehicles. According to the EPA, The transportation sector is one of the most significant contributors to U.S. greenhouse gas (GHG) emissions. According to the EPA’s Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990–2021, transportation accounted for the largest portion (29%) of total U.S. GHG emissions in 2021.

Education programs and public service announcements have been rolled out primarily by non-profits promoting EV adoption. One notable example is Veloz’s “Kicking Gas” video campaign, in which Arnold Schwarzenegger humorously poses as a new car salesman, trying to convince EV buyers to go ICE.

EVinfo.net believes much more education is needed for those buyers considering EVs. Billions in federal funding have gone to building out charging infrastructure nationwide. While this is encouraging, we ask the federal government to spend more on education. If consumers knew more about the benefits of driving electric, more would take the leap, in spite of the barriers. Many buyers believe the anti-EV messaging we see frequently on social media, which is all untrue.

Dealerships have struggled with selling EVs, with news reports about EVs piling up on dealership lots. In January 2024, a letter was sent to President Biden from over 4,700 U.S. automotive dealerships across the U.S., urging a slowdown of the government’s support of EVs. This was the second letter to President Biden from the group. Stellantis offers an excellent example for other OEMs to follow with its comprehensive training programs for shifting its dealers from selling ICE vehicles to selling EVs. Federal-funded education could be targeted to dealers as well. Dealers who position themselves as EV experts, holding EV events at their locations and using other strategies, could move ahead of competitors by becoming known as the leaders of this fast-growing new and exciting technology.

Automotive dealerships are a large piece of the EV adoption puzzle. Most dealerships need help with selling EVs despite the fast-growing EV sales stats. Despite the challenges, dealers can succeed at selling EVs. Innovative company Future Energy, based in Troy, Michigan, offers valuable solutions for dealerships wanting to optimize their EV sales.

Future Energy’s dealership EV solution is a complete, scalable strategy. This strategy enhances sales conversion, power-use management, after-sales opportunities, inventory management, financial assistance, and much more. 

US DOE’s Alternative Fuels Data Center gives some good educational information. The Vehicle Cost Calculator uses basic information about your driving habits to calculate total cost of ownership (TCO) and emissions for makes and models of most vehicles, including ICE, hybrid, plug-in hybrid and electric. The vehicle comparison can allow comparisons of up to 8 vehicles at a time. DOE also offers a Plug-In Electric Vehicle Handbook for Consumers. Range differences due to outdoor temperature, and an explanation of MPGe should be included in educational materials. For instance, how extreme heat and cold can decrease range, and how to prepare for these situations.