Four Things Will Drive Mass EV Adoption in America

In October 2024, The Edison Electric Institute (EEI) released an updated report on electric vehicle (EV) sales and the charging infrastructure required to support this growth, offering new insights into the future of EV adoption. According to the report, the number of electric vehicles on U.S. roads is projected to reach 78.5 million by 2035, a significant increase from the 4.5 million EVs reported to be in use on America’s roads at the end of 2023. This growth would account for more than 26% of the nearly 300 million vehicles expected to be on U.S. roads by that year.

Annual EV sales are expected to reach 7.7 million by 2030, representing nearly 46% of total light-duty vehicle sales. This projection marks an increase of over 2 million in annual EV sales compared to previous forecasts. By 2035, nearly 12.2 million EVs are expected to be sold annually, comprising almost 72% of all light-duty vehicle sales. To support this surge in EVs, the report estimates that around 42.2 million charging ports will be needed by 2035, with approximately 325,000 DC fast charging ports required to meet demand.

U.S. electric companies are already making significant investments in charging infrastructure, committing over $5.3 billion to expand EV programs and make charging more accessible. EEI Senior Vice President of Customer Solutions Phil Dion emphasized that electric companies are working closely with their members across the country to assess grid capacity and address the infrastructure needs associated with the growing number of EVs.

The Joint Office reported on December 3, 2024, Plug-in electric vehicle (PEV) sales in the United States continue to show strong growth. As of the end of October 2024, a total of 1,269,949 PEVs, which include both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), have been sold, marking a 9% increase over the 1,168,573 PEVs sold by the same time in 2023. This performance surpasses both last year’s sales and the overall growth of light-duty vehicle (LDV) sales.

In October 2024, PEVs captured 10.0% of the total light-duty vehicle market, a notable increase compared to 9.4% of the market share in 2023 and 6.8% in 2022. A total of 132,799 plug-in vehicles were sold in October 2024, including 112,419 BEVs and 20,380 PHEVs. This represents a 16.2% increase from the 114,378 PEVs sold in October 2023.

In comparison, overall light-duty vehicle sales in the U.S. for October 2024 amounted to 1,325,263 vehicles, which is a 10.6% increase from the previous year. Cumulatively, over 6 million PEVs have been sold in the U.S. to date, further highlighting the continued acceleration in the adoption of electric vehicles.

The Edison report also highlights the critical role of federal funding for EV charging, particularly through the National Electric Vehicle Infrastructure (NEVI) program, created by the Bipartisan Infrastructure Law. This program designates $5 billion to deploy public EV charging, representing the largest public investment in EV infrastructure to date. By July 2024, approximately $450 million in NEVI funding had been awarded, with construction already underway on many new charging projects. EEI estimates that the NEVI program could support up to 30,000 fast-charging ports at 7,500 sites nationwide.

In addition, the National Electric Highway Coalition (NEHC) is working with state transportation departments to ensure that federal funds are maximized, building a reliable network of fast-charging stations along major U.S. corridors. This collaborative effort aims to enable EV drivers to travel with confidence, supporting the broader transition to electric vehicles across the nation.

The Joint Office reported that in October 2024, the U.S. electric vehicle (EV) charging network saw continued growth, with 5,086 new public charging ports coming online, representing a 2.6% increase in the national charging infrastructure. This expansion is part of the ongoing efforts to support the rising number of electric vehicles on the road.

As of the end of October 2024, there are more than 203,000 charging ports available across the United States, spread across more than 74,000 locations. In addition, projects to deploy over 24,000 federally funded chargers are currently underway, contributing to further expansion of the charging network. These efforts are supported by the Bipartisan Infrastructure Law, which provides funding to build and improve public charging infrastructure. For real-time data and to locate chargers funded through this law, individuals can visit the Drive Electric website.

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, lack of multifamily charging, and high vehicle prices are the main barriers to American EV adoption at the moment.

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 is expected to officially be the new standard for EV charging connectors soon. 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. Pando Electric is one of many innovative companies working to bring more multifamily EV charging to EV drivers. Pando Electric offers a cost-effective and highly scalable electric vehicle home charging solution tailored to the needs of multifamily and commercial properties, and is recommended by EVinfo.net.

Pole-Mounted Charging, a New Innovation in Curbside EV Charging

For most big city EV drivers, charging in places they typically park is preferable to making a special trip to a charging station. This is the great value of curbside EV charging, a growing industry in the U.S. Many curbside EV charging startup companies have been created to address the issue. However, a partnership between two well-established and respected EV charging companies, EVSE and AmpUp, is delivering an innovative solution for the lack of curbside EV charging. This solution, pole-mounted EV charging, is also the most cost-effective, in addition to being a revolutionary new idea. AmpUp is recommended by EVinfo.net.

Autel Energy Solving the Charger Quality Problem

Low-quality charging equipment has been an issue in the EV charging industry. That problem is being solved by well-respected companies, such as Autel. Founded in 2021, and located in Port Washington, New York, Autel Energy North America (Autel) is quickly becoming known as America’s leading electric vehicle (EV) charging manufacturer, offering the very highest quality EV charging products, recommended by EVinfo.net.

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 and cost-effective 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 on December 20, 2024 that the average EV buyer in November paid $55,105, an increase of 1.4% year over year. Gas-powered vehicles were on average $6,940 less expensive. These prices are high for most Americans to consider driving EVs for now, but EV prices are expected to come down significantly in years to come.

Currently, the 2024 Chevy Equinox EV is the lowest-priced new electric vehicle (EV) available in the U.S. It qualifies 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. 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.

Four Things Will Drive Mass EV Adoption

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

• Lower vehicle prices, more incentives, saving federal EV tax credit and EV subsidies.
• A larger selection of available EV models.
• Removing the EV charging barriers.
• Releasing massive education for buyers and dealers.

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.

The incoming administration is expected to cut the federal EV tax credit and EV subsidies in 2025. The federal EV tax credit and EV subsidies are important because they are crucial to helping American automakers catch up to China and compete with China, by producing EVs, hybrids and gas cars made in America. This is important to remember even for EV critics, as the EV credits and subsidies also help companies produce the gas cars that these critics prefer. Removing the credit and subsidies would be a disaster for America’s economy, losing American jobs in significant numbers.

China now leads the global automotive and EV markets. Keeping an eye on EV sales and production in China is important is because it is definitive proof that EVs are rapidly becoming the dominant force in the global automotive industry. America’s automotive OEMs are less able every passing year to compete globally with China’s low vehicle prices, due to the country’s low production costs. America must subsidize its automotive industry to survive and compete.

Other Subsidies and Credits

If you’re considering purchasing an electric vehicle (EV) or already own one, it’s important to be aware of the various incentives available to help reduce costs. Many states offer rebates, tax credits, and other financial incentives designed to make the transition to EVs more affordable. These incentives can apply not only to fully electric vehicles but also to plug-in hybrid electric vehicles (PHEVs), fuel-cell electric vehicles, and even electric motorcycles.

In addition to federal tax credits, which can be applied toward the purchase of a new EV, state-level incentives often include rebates for both the vehicle purchase and installation of home charging equipment. Some states may also offer reduced electricity rates or bill credits to EV owners, further helping to lower the cost of owning and operating an electric vehicle. These state-specific programs vary widely, so it’s important to check with local government or utility companies for the exact incentives available in your area.

By taking advantage of these incentives, you can significantly reduce the upfront cost of an electric vehicle or enjoy ongoing savings in your energy bills, making EV ownership an even more appealing option. EVinfo.net would like to see states increasing their incentives, or establishing them if none currently exist.

When news broke that the federal EV tax credit may be cut, California announced it may give its EV buyers a tax credit up to $7,500 for the purchase or lease of a new plug-in hybrid, battery or fuel cell EV. The exact details of the proposed state tax credit and its eligibility criteria are still under development, but they may focus on vehicles priced below certain thresholds or manufactured with significant domestic content to incentivize local production and reduce costs. California Governor Gavin Newsom’s office indicated that Tesla’s electric vehicles might not qualify for the state’s new tax credits.

Power utilities, and other organizations also offer EV incentives. Electric For All by Veloz offers a great search feature to find incentives by zip code. EVinfo.net would like to see these utilities and organizations increase their credits.

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. should 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 100% import tariff on Chinese vehicles, the BYD Seagull would still dramatically undercut U.S. EV prices.

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 is America’s most affordable EV in 2024.

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. 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, when the first NEVI-funded EV charging station opened in Ohio in December 2023. Charging availability has grown significantly in recent years, however much more charging is needed in all sectors, private, public, and home (single home and multifamily.)

Connector compatibility issues remain but are being resolved as more drivers become familiar with the differing CCS and NACS connections. Ford sent 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. Two innovative companies, EVSTAR and WattsUp, are solving the EV charging reliability issue. Both are recommended by EVinfo.net.

EVSTAR’s comprehensive extended warranty covers mechanical and electrical failures, normal wear and tear, and more on EV chargers. As a national renewable energy service and warranty administrator backed by a leading global insurance organization, EVSTAR brings decades of EV charging technology service warranty and repair expertise to its customers. WattsUp works with a variety of EV charging site operators, hardware manufacturers, and technician groups to improve reliability. At the heart of WattsUp’s platform is its powerful AI technology and its prioritization of a sometimes overlooked stakeholder in charging — the technician. By utilizing proprietary machine learning algorithms, WattsUp analyzes data from EV chargers to deliver accurate predictions and valuable insights to site operators and technicians.

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 misinformation and messaging we see frequently on news outlets and 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.