The electric vehicle (EV) market is still in its early stage of adoption. Cars manufactured with internal combustion engines, drawing on an approach pioneered over 140 years ago by Karl Benz, continue to dominate the world’s highways and byways. And Yet, virtually every automotive manufacturer in the world is pursuing a variety of strategies to address the market, in an effort to embrace new technology, meet consumer demand, as well as comply with government regulators, who –for the most part—continue to pressure the industry to achieve better mileage standards, and reduce carbon emissions. 

What began as a trickle with a lone, two-seat sports car introduced by Tesla Motors in 2006, EVs have become the fastest growing segment of the global transportation industry. Legacy manufacturers of internal combustion engine cars and trucks including General Motors, Ford Motor Company, Stellantis, Mazda, Porsche and many others, including Toyota, Nissan, and Volvo, are collectively plowing billions of dollars into research, development, and new factories to create the next generation of EV cars and trucks.

China is by far and away the largest producer and consumer of EVs, with more than eleven million EVs sold each year. EVs now account for more than 50 percent of all cars sold in the country. In Europe, EVs account for roughly 20 percent of all new car sales. In the United States, EV sales account for less than ten percent of all light vehicles sold in the U.S. The abrupt cancellation of federal EV tax credits implemented through the Inflation Reduction Act has reduced the incentive to purchase EVs, amid a last-ditch effort to save the internal combustion engine from extinction. 

Despite a significant reduction in the investment in new factories and models by many global manufacturers, demand for EVs continues, as many consumers are taking the opportunity to embrace new technology, enjoy the quiet ride which most EVs provide, reduce out of pocket maintenance costs, as well as reduce carbon emissions, thus helping to save the environment for future generations. Survey after survey of EV owners in the U.S. confirm that —with few exceptions—they are unlikely ever again to purchase a gasoline-powered car. 

Today, there are over 100 EV models for sale in the U.S., and yet Tesla continues to dominate the market with only three distinct models, the Model Y Crossover/small SUV, Model 3 sedan, and the Cybertruck, a next generation space-age pick-up truck. Tesla’s market share of more than 45 percent of all new EVs sold in the U.S. is more than three times that of GM, its closest competitor, a company which has dramatically scaled back its EV investments. 

In the meantime, the emergence of more affordable models as well as a relatively new thriving market for used EVs promises to spur wider adoption I n the U.S. and other regions throughout the world.