The electric vehicle (EV) market in the United States experienced significant growth in 2024, reaching a record 1.3 million units sold. This represents a 7.3% increase compared to 2023, demonstrating continued consumer interest in electric vehicles. While the growth rate has slowed compared to the previous year, the overall sales volume continues to expand, marking a significant step in the ongoing transition to electric mobility.
Key Trends in 2024 EV Sales
Overall Sales and Market Share
In 2024, 1.3 million EVs were sold in the U.S. This is a 7.3% increase from the 1,212,758 units sold in 2023. EVs accounted for 8.1% of total vehicle sales in 2024, up from 7.8% in 2023. This indicates that while the growth rate has slowed, the market share of EVs continues to expand steadily.
Fourth Quarter Surge
The fourth quarter of 2024 saw a significant surge in EV sales, with a 15.2% increase year-over-year, totaling 365,824 units. This late surge helped propel the overall annual sales to record levels. This increase is attributed to factors such as increased incentives from automakers, attractive lease deals, and federal and state incentive programs.
Growth Rate Deceleration
Although the EV market grew, the rate of growth slowed compared to 2023, when sales jumped 49% compared to 2022. This deceleration suggests that while the market is expanding, the pace of adoption is moderating.
Regional Differences
While the US market saw a 7.3% growth, the broader North American market, including Canada, grew by 9% in 2024. In contrast, China’s EV market grew by an astonishing 40% in 2024. Europe experienced a slowdown in the shift to EVs, with a lower growth rate than the United States.
Top Selling EV Models
The Tesla Model Y remains the top-selling EV in the U.S., followed by the Tesla Model 3. Other popular models include the Ford Mustang Mach-E, Hyundai IONIQ 5, and Ford F-150 Lightning. The top 10 best-selling EVs in the U.S. for 2024 are:
| Rank | Model | Sales | Market Share |
|——|————————-|———–|————–|
| 1 | Tesla Model Y | 372,613 | 28.6% |
| 2 | Tesla Model 3 | 189,903 | 14.6% |
| 3 | Ford Mustang Mach-E | 51,745 | 4% |
| 4 | Hyundai IONIQ 5 | 44,400 | 3.4% |
| 5 | Tesla Cybertruck | 38,965 | 3% |
| 6 | Ford F-150 Lightning | 33,510 | 2.6% |
| 7 | Honda Prologue | 33,017 | 2.5% |
| 8 | Chevrolet Equinox EV | 28,874 | 2.2% |
| 9 | Cadillac Lyriq | 28,402 | 2.2% |
| 10 | Rivian R1S | 26,934 | 2.1% |
Market Share by Automaker
Tesla continues to dominate the U.S. EV market, though its market share has decreased. In 2024, Tesla accounted for approximately 44-50% of all EVs sold in the U.S., down from 55% in 2023, and 62% in 2022. This decline indicates increased competition from other automakers. General Motors (GM) and Ford secured the second and third spots in U.S. BEV sales, respectively. GM’s EV sales increased by 50% compared to 2023, reaching approximately 114,000 units. Ford’s EV sales rose by 35% year-over-year, totaling 97,865 units.
Factors Influencing EV Sales in 2024
Incentives and Tax Credits
Strong incentives from automakers, attractive lease deals, and federal and state incentive programs played a significant role in driving EV sales in 2024. The $7,500 federal EV tax credit is a key factor in making EVs more affordable for consumers. These incentives have enabled manufacturers to offer more competitive lease deals and promotions, further driving sales.
Increased Model Availability
The availability of more EV models from a variety of manufacturers has contributed to the growth in sales. Legacy automakers like GM, Ford, Honda, Hyundai and Kia are now offering a wider range of electric vehicles, increasing consumer choice.
Growing Charging Infrastructure
While still a concern for some consumers, the expanding charging infrastructure across the US has made EV ownership more convenient and appealing. Investments in charging infrastructure have played a crucial role in driving EV adoption.
Consumer Awareness
Increased consumer awareness about the benefits of electric vehicles, including lower operating costs and environmental advantages, has also contributed to the rise in sales.
Automaker Investments
Major investments by automakers in EV technology and production have led to more advanced and appealing electric vehicles. This has helped address some consumer concerns about range and performance.
Challenges in the EV Market
Pricing Concerns
Despite incentives, the higher cost of electric vehicles compared to gasoline-powered vehicles remains a significant challenge for many consumers. While battery costs are declining, further reductions are needed to make EVs more accessible.
Charging Infrastructure
The need for a more robust charging infrastructure, especially in rural areas and for long-distance travel, is an ongoing challenge. The availability and reliability of public charging stations need further improvement.
Consumer Concerns
Some consumers still have concerns about the range of EVs, charging times, and the overall convenience of ownership. Addressing these concerns is essential for continued growth.
Policy Uncertainty
Potential policy shifts, such as changes to federal tax credits, could impact the EV market. President-elect Donald Trump has expressed intentions to end the $7,500 tax rebate, creating uncertainty and potentially impacting future sales.
Misinformation
The EV market has also faced challenges from misinformation, which has impacted consumer perceptions and has caused some automakers and governments to scale back EV targets.
Future Outlook for EV Sales
Continued Growth
Analysts at Cox Automotive predict continued EV sales growth in 2025, with the potential for EVs to exceed 10% of all new car sales. Further improvements in charging infrastructure, factory-sponsored discounts, and new vehicle models are expected to drive this growth.
Increased Electrification
Cox Automotive predicts that one in four new cars sold in 2025 will be electrified in some way, including hybrids, plug-in hybrids, and EVs.
Competition
The EV market is expected to become more competitive, with more automakers introducing new models and technologies. This competition could lead to lower prices and more advanced features.
Policy Impact
The future of federal EV tax credits and other policies will likely have a significant impact on the EV market. Potential changes in administration and policies could affect the ability of domestic U.S. EV manufacturers to compete on price.
Global Market Trends
The global EV market is also expected to continue growing, with China and Europe playing key roles. China’s trade-in schemes and Europe’s emission pooling strategies will continue to influence market dynamics.
Conclusion
The U.S. electric vehicle market experienced notable growth in 2024, with sales reaching a record 1.3 million units. While the rate of growth has slowed compared to previous years, the market share of EVs continues to rise. Factors such as government incentives, increased model availability, and growing charging infrastructure contributed to this growth. However, challenges related to pricing, charging infrastructure, and consumer concerns persist. The future of the EV market looks promising, with continued growth expected in 2025 and beyond, although policy changes and competition will play a key role. Despite some hurdles, the momentum for electric vehicles in the U.S. is strong, with continued expansion expected in the coming years.
