Welcome to the Year of the EV! According to Electrek.com, results of a survey show that nearly three in four U.S. drivers believe electric vehicles are “the future of driving.” It’s closer to 79% among EV drivers. While consumers become more interested in sustainable choices, it’s becoming easier than ever to own an EV.
All EV insiders and drivers look forward to a greener future. The last few months have seen a boom in EV sales, bringing that future closer than ever. Sales of electric vehicles have surged recently, while sales of gas-fueled cars have dropped, in some cases, dramatically. According to Forbes, car sales fell 89% in the U.K. last May, a catastrophic hit for any industry, however sales of EVs continued to climb by 21.5%. In the U.S., 27 out of 30 car manufacturers have lost money in 2020, but EV sales continue to surge.
A combination of pandemic worries, loss of income, climate change, and concern about the future decimated the car industry but bolstered the purchase of EVs. According to Clean Technica, EVs could reach a 70% year-over-year increase, with sales increasing to 585,375 in 2021 from 345,285 in 2020, while international sales could rise 50% in just one year, predicted by analysts at Morgan Stanley.
Some growth in the EV industry, as in every other sector, has been slowed by Covid, which prevented the release of a few new EVs, but the industry has nowhere to go but up for 2021. Deloitte reports that despite the Covid slowdown, they predict “Total EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. EVs would secure approximately 32% of the total market share for new car sales.”
While the stock market slowed over the last year, a boom in EV sales is helping bring it back to life. Tesla alone has delivered a 594% profit increase to its investors to date. According to Cision, “For the fourth consecutive quarter, the EV maker posted yet another blowout that beat top-and bottom-line expectations. More importantly, it exceeded Wall Street delivery estimates and reported record profits to boot.”
In the past, EV sales have been fundamentally driven by Tesla, which represented 65% of all sales. That figure is now down to 54%; the likely cause is that more companies are getting into the EV business and introducing popular models. The new Ford 150, for example, may be the most highly anticipated EV roll out of all.
General Motors just announced an investment of $2 billion in domestic plants for EV manufacturing. “These investments underscore the success of our vehicles today, and our vision of an all-electric future,” said GM Chairman and CEO Mary Barra.”
Part of the EV boom is because it’s becoming easier to own an EV. EV sales are surging because of everything from government incentives to contact-free purchasing, bringing us a greener future faster than anyone could have predicted.
State governments are expanding rebates and tax credits for green vehicles. According to the Boston Globe, Massachusetts has expanded its rebate program from only personal vehicles to companies and non-profits. They will be eligible for a $2,500 rebate on any electric vehicle up to $50,000. Only $1.6 million has been distributed so, far, and the state has committed to $27 million in rebates.
Florida governor Ron DeSantis signed landmark legislation this summer to build “a master plan for the development of electric vehicle charging infrastructure across Florida.” This sweeping, bipartisan bill, supported by Florida’s environmental leaders, will make owning an EV easier than ever.
The incoming Biden administration has also promised to make net-zero emissions by 2050 a part of the proposed agenda, with a proposed annual investment of $500 billion, yes billion with a “b”, toward reaching that goal that includes investments in EV technology and EVSE infrastructure development and deployment.
According to top financial analysts, nothing but blue skies await the EV industry in 2021, particularly once it’s safe for people to test drive cars again and see them on lots. Ironically, Covid may have slowed down the industry, and simultaneously have been one of the forces that sparked consumer interest this year not only in sustainability but also in products that support public health. It won’t be long until it can be definitively proven if the investments by manufacturers and government entities make 2021 the Year of the EV.