Introduction

The US automotive industry is one of the oldest and most well-renowned in the country. Since Henry Ford and the Model-T, automaking has been a key component of the US economy. However, as in any industry, the auto industry is constantly evolving with technological advancements, politics, and social movements. In the past decade, a social and political push towards green energy has inspired automakers to pursue alternatives to fossil fuels. Social and political incentives combined with constantly improving lithium battery technology have caused many leading automakers to begin selling electric vehicles. While many automakers are fighting for a piece of the EV market, the dominant EV producer has been Tesla. Tesla’s development of high quality EVs and its vast network of charging stations has made the company the driving force in the expansion of the EV industry in the US.

Plot 1

The above plot displays how rapidly the electric vehicle market has grown in the past decade. While electric vehicles grew earlier on in the world market, the US market is on a similar trajectory.

Plot 2

As shown in the above chart, Tesla is the company currently leading the growing market of EVs in the US. In 2023, Tesla’s Model Y and Model 3 combined for well over 600,000 units sold. The third highest selling EV model, the Chevy Bolt, sold only 62,000 vehicles. Tesla’s success stems from its ability to successfully differentiate itself in the EV market based on the incredible performance and quality of its vehicles.

Plot 3

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One of the main reasons that eclectic vehicle sales continue to grow is their impressive performance statistics. Two of the main variables related to EV performance are range and charging speed. The above graph plots the sales of the top ten selling EVs in 2023 relative to their price, range, and charging speed. As seen in the graphs, the range of some 2023 EVs is well above 260 miles, and charging speeds are up to 10 miles per minute. As new EVs are introduced with even better metrics, demand for such vehicles will continue to grow. Two Tesla models clearly separate themselves from the other models in terms of sales volume.

Plot 4

The above graph provides a more in depth view of the battery efficiency of a larger selection of EV models. In this scatter plot, Tesla and Lucid models have significantly better performance than other competing models. Many historical car manufacturers who have developed EVs, such as BMW, Ford, and Toyota, have not been able to match the performance of Tesla with their models. Only Lucid models have a higher level of performance, though Lucid operates at a much smaller scale than Tesla and has a low number of sales as seen in Plot 3.

Plot 5

One obstacle EV manufacturers have faced is the higher costs of manufacturing in comparison to regular vehicles. As recently as 2020, the average retail price of EVs was over $15,000 more than the average price of gas-powered cars. While government tax subsidies and a desire for green transportation provided some demand for EVs, the price barrier limited the quantity of demand for EVs. However, as shown in Plot 5, the average price of EVs and gas-powered cars have begun to converge. Developments in battery technology and expansion in the scale of production are expected to lower the costs of manufacturing EVs in the future, and will cause average prices to continue to converge towards prices in the general car market.

Plot 6

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An important development for EVs to become a reliable form of transportation in the US is the creation of charging stations. As with gas-stations, electric charging stations need to be easily accessible for any EV driver for EVs to be a reasonable transportation option. Unlike gas-powered vehicles, EVs can also be charged using home energy. Plot 6 identifies the number of charging ports available in each US state. Most charging stations have multiple charging ports, so the data does not represent the number of charging stations. Charging ports are most common in California, where a significant shift has been made to green energy. Many of the charging ports around the country are built for Tesla EVs. While in the past access to these ports has been restricted to only Tesla models, a recent decision by Tesla now allows non Tesla EVs to also use Tesla charging stations with the use of a charging adapter. While it is uncertain what the future of the automotive industry will be, the electric vehicle sector appears to be a promising area of growth in the coming years. As costs of production decrease and performance quality improves, demand for EVs will continue to expand.

Plot 7

Plot 7 explores projections from the International Energy Agency for what future EV market share may be. The model projects that EV market share will reach 22% of the US automotive market in 2025. By 2030, EV market share is expected to be 50%, overtaking global EV market share. While these percentages are merely projections, they demonstrate the incredible growth potential of EVs in the automotive industry. Already Teslas have become common on city streets, but they are likely to be far more abundant in the near future.

Plot 8

A crucial resource for the production of EV batteries is lithium. The current supply of lithium batteries has been one of the limiting factors in EV growth. However, as seen in Plot 8, battery production is expected to grow rapidly, particularly in the US. By 2030, lithium battery production in the US is expected to be nine times higher than its current level, as projected by the International Energy Agency. Growing production of lithium batteries, combined with the development of non-lithium batteries, should facilitate continued expansion of EV production for years to come. While historical gas-powered vehicles will continue to be manufactured in the immediate future, electric vehicles may eventually become the leading form of transportation in the US. Tesla has been responsible for the vast majority of EV technological development, and will most likely continue to be the leading force in the industry.