The US EV market comes back from the dead. Thank high gas prices.
US electric vehicle sales saw a sequential increase in the second quarter, driven largely by rising gas prices. While Tesla continues to dominate the market, other automakers struggled after pulling back on EV investments following the expiration of federal incentives.
Why it matters
The data highlights the sensitivity of the EV transition to both government policy and fluctuating fuel costs, impacting long-term automotive industry strategy.
Tesla CEO Elon Musk Reuters Surging gas prices made EVs more appealing, boosting US EV sales in Q2 after an incentive slump. Tesla leads the US EV market with more than 50% share. No one else comes close. Other automakers pulled EVs. It was terrible timing. When gas prices surged earlier this year, the Barr household barely felt it. We stopped driving the gas-guzzling BMW and only used our Tesla Model 3 , which is charged up from our rooftop solar panels and Powerwall battery. It's cheap transportation, and it stayed that way through $5 gas, as other EV owners were keen to tell everyone . In the second quarter, more American car buyers wanted a piece of this action, helping the US EV market find its footing after a brutal slump triggered by the end of federal incentives.
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