Richmond's EV adoption is growing
Add Axios as your preferred source to
see more of our stories on Google.
Electric vehicles (EVs) accounted for 4.5% of monthly new vehicle registrations in the Richmond area in January 2023 — up from 2% in January 2022.
- December 2022 saw one of the highest registration months yet, with EVs accounting for 7.1% of new registrations.
- Tesla Model Y and Tesla Model 3 were the most popular, followed by Hyundai IONIQ 5, Chevrolet Bolt and Ford F Series.
Zoom out: Nationally, EVs accounted for 7% of new vehicle registrations in January, up from 4.1% in January 2022.
- The growth is another sign that the EV transition is gaining momentum.
Why it matters: EVs aren't just for early adopters anymore.
- With broader selection and some signs of moderating prices, mainstream car buyers are increasingly turning their EV curiosity into purchases.
Of note: While the EV pie is growing, Tesla's nationwide market share continues to shrink — from 72% in January 2022 to 54% a year later — as rivals introduce new models.
Axios has been tracking the historic shift away from gasoline using vehicle registration data from S&P Global Mobility.
- In 2022, electric vehicles made up 5.6% of all new U.S. car registrations.
- That's up from 3.1% in 2021 and 1.8% in 2020, but still way behind China and Europe.
Reality check: Less than 1% of the 279 million cars and light trucks on American roads are electric.
- It will take a couple of decades for the slow transition from gasoline to electric vehicles to be complete.
Driving the news: Existing consumer tax credits for EV purchases are being reworked — again — in part to bolster U.S. manufacturing and reduce reliance on China.
- Changes to the existing $7,500 tax credit will likely affect the pace of adoption.
- The U.S. Treasury Department on March 31 spelled out how new sourcing requirements for battery components and critical minerals under the Inflation Reduction Act will be implemented — rules that affect which vehicles will qualify for tax credits moving forward.
- A list of qualifying vehicles will be announced in mid-April, but few of today's EVs are expected to meet the new standards.
The intrigue: Anyone racing to snag the $7,500 tax break before the rules get stricter is likely to find EVs in short supply.
- Inventories are tight because of ongoing supply chain issues and a price war triggered by Tesla price cuts in January.
The bottom line: EV-curious consumers have more choices than ever.
- There were 47 electric models available for sale in the U.S. at the end of January, up from 33 the prior year.