Electric vehicles (EVs) in the US are smashing records as their market share exceeded 7% in the first half of this year, marking a critical tipping point for mass adoption. Furthermore, the total number of EVs sold has surpassed 3 million in recent months. What's even more impressive is the rapid pace at which new EVs are being sold, with nearly 1 million purchased in the 12 months leading up to June, according analysis.
It's noteworthy to mention that the US took a decade to sell its first million fully electric vehicles, but only two years to reach the second million, and just slightly over a year to reach the third million. Looking ahead, it appears that the US is well on its way to achieving a fourth million when the figures for the latest quarter are tallied up.
A different perspective on the pace of EV purchases can be seen by examining the 12-month rolling sales. This approach reveals a surprising level of progress, as each calendar quarter showcases the year of EV purchases up to that point, smoothing out seasonal fluctuations that can mask long-term trends. Notably, the only time 12-month EV sales declined was during a brief period that coincided with Tesla's temporary exportation of a significant portion of its Model 3 inventory to kick-start overseas sales, which happened during the third quarter of 2019 and coincided with the onset of the pandemic.
Thus far, the story of EV adoption in the US has been dominated by two key players: California and Tesla Inc. California was the first major global auto market to achieve a crucial EV tipping point, with EVs accounting for 5% of new car sales. Additionally, Tesla recently surpassed Toyota to become the top-selling vehicle brand, electric or otherwise, in the state.
In order for EVs to truly become mainstream throughout the US and for the Detroit auto industry to navigate the transition successfully, it is crucial for markets to diversify. This geographical diversification is starting to occur, with states such as Texas, Florida, Washington, and New Jersey gaining market share in EV sales while California's share decreases. However, it's important to note that Tesla remains the dominant force in the EV market, accounting for 61% of all EVs ever sold in the US.