The Electric Car Market Poised for a Boom

The Electric Car Market Poised for a Boom

The EV market is poised for an unprecedented boom, according to Bloomberg Green’s Electric Car Ratings. A few months ago, a survey showed that 25% of Americans said they were “very likely” to buy an electric car as their next vehicle purchase. Now, many North Americans have joined waitlists for models in high demand and will purchase an estimated 1.4 million EVs this year, most of which will be fully electric. There’s even greater demand in Asia and Europe, where nearly 10% of all vehicles purchased are EVs.

Car companies are responding to increased EV demand by ramping up production. GM has pledged to phase out gasoline-powered cars and trucks entirely by 2035 and introduce 30 new EVs by 2025. Meanwhile, Ford has increased its investment to $30 billion through 2025 to ensure at least 40% of its global sales are EVs by 2030. In the last year, the number of EVs on the American market has tripled. Next year, dozens more will enter the market.

Bloomberg: Electric Cars and the Race to Sustainability, February 4, 2022.

CNBC: Why GM Says Its Ultium Batteries Will Lead It To EV Dominance, May 13, 2022.

Guardian: How green are electric cars? | It's Complicated, February 24, 2022.

Why This Matters

While the American EV market has traditionally lagged behind that of Europe and Asia, the nation is catching up as gas-powered vehicles become increasingly unfeasible for a variety of reasons. Americans are becoming more judicious about their fossil fuel consumption as gas prices skyrocket and more evidence emerges proving the harmful effects of car pollution. The worsening climate crisis has also prompted government action. At the beginning of President Biden’s term, he issued an executive order calling for 50% of new vehicle sales to be EVs by 2030. Vice President Kamala Harris also announced plans to tighten pollution limits for heavy trucks and buses to reduce NOx emissions from these vehicles by up to 90% over the next decade.

The American Lung Association: The Electric Vehicle Solution, February 3, 2021.

Econimate: The Emissions Cheating Scandal and the Health Effects of Car Pollution, October 2, 2019.

CNBC: Who Is Winning The Global EV Race?, March 14, 2022.

Which Electric Cars Are the Best?

With so many new models hitting the market, consumers may find themselves overwhelmed. EVs represent a fairly new and rapidly changing market in the auto industry, where greenwashing still runs. Though much more environmentally friendly, EVs still have a massive carbon cost due to the steel, lithium, and electricity required for manufacturing.

Enter Bloomberg Green’s Electric Car Ratings, a list of the “greenest” EVs on the market to help consumers make sense of the new options. The ratings take into account battery size, range in relation to weight, charging speed, and production emissions. According to the list, luxury vehicles lead the pack with Lucid Air’s Dream Edition green rating of 71.1 at the top. Tesla’s Model 3 and Model S rank second and third. Fourth place belongs to the Chevy Bolt, currently America’s most affordable EV.

Another list of the year’s best electric cars was released by the American Council for an Energy-Efficient Economy (ACEEE). This list includes hybrids, giving top rankings to Toyota’s Prius Prime, Hyundai’s Ioniq Plug-In Hybrid, and the Mini Cooper SE Hardtop 2 Door.

Bloomberg: General Motors CFO Paul Jacobson on Bloomberg Chief Future Officer, June 30, 2022.

Bloomberg: Why Hertz Is Buying 65,000 Electric Vehicles From Polestar, April 4, 2022.

Bloomberg: Lincoln Motors Pres. Says They Are Not Late to EV Game, April 21, 2022.

Top Gear: What’s The Best EV To Buy Right Now? Tesla Model Y vs ALL the rivals, April 10, 2022.

The Car Space: 14 Electric Cars For Every Budget Coming in 2023 - 2024, June 15, 2022.

CNET: Here are the electric cars coming in 2022, a record year for EV launches, January 21, 2022.