Most Electric Car Buyers Don't Switch Back to Gas

People who buy electric vehicles really like them, according to U.S. vehicle registration data, which shows most EV owners tend to buy an EV for their next car, too.

Why It Matters

The data reveals a growing embrace of electric cars as automakers and the federal government pour billions of dollars into EV and battery production. The trend points to a lasting shift in consumer behavior rather than a passing fad.

What's Happening

Axios tracked the historic shift away from gasoline by examining vehicle registration data from S&P Global Mobility. Roughly two-thirds (65.3%) of EV-owning households that bought a new car in 2022 chose another electric vehicle. That's up sharply from 2021, when about 48% of EV owners in the market for a new car stayed electric. Tom Libby of S&P Global Mobility called the trend "a very positive sign about the future of EVs."

The Big Picture

The U.S. lags China and Europe in EV adoption, but the market is clearly shifting. Consumers now have far more options, and more affordable models are on the way. The number of EV models available in the U.S. jumped from 27 in July 2021 to 45 a year later, with projections of nearly 150 models by 2025. Every segment of the vehicle market is going electric: cars, SUVs, pickup trucks, and delivery vans.

Where It Stands

Tesla's Model Y and Model 3 continue to dominate, accounting for 51% of all new EV registrations in July. Tesla brand loyalty is remarkably high — 91% of Tesla owners who bought another EV chose another Tesla. However, as rivals introduce new models, Tesla's U.S. market share has already begun to shrink, falling from 81% at the start of 2019 to under 60%.

EVs on the Rise Nationwide

EVs accounted for 5.8% of all new cars registered nationally in July, up from 3.4% a year prior. California remains the leading EV market — in San Francisco, EVs accounted for a third of all July registrations. Texas is also seeing strong EV growth in Austin and Dallas.

Originally published by Axios. Author: Joann Muller.