3 Electric Vehicle Tensions in a Growing Market

The market for electric vehicles (EVs) is growing rapidly. Almost all of the available statistics show that the number of electric vehicles and their share of the car market are both growing.

Summary:This growth is also accelerating: in 2020, the global fleet of electric vehicles increased by 43% despite the pandemic, and the sector was more resilient to the overall decline in car sales associated with the pandemic. Between 2020 and 2021, the share of electric vehicles in the global market will double.

For those interested in being at the forefront of technological developments, investing in the ability to sell electric cars is not difficult.

1. Uneven growth

In fact, these global statistics don't even reflect the country's growth. Pew found slower growth in the U.S. than in China or Europe. However, these differences are not primarily due to cultural or territorial differences, which is a heavy argument when comparing such vastly different areas, but to legislation.

This is evidenced by the level of electric vehicle adoption in California, which is a pioneer in electric vehicle adoption in the United States. In fact, per capita rates are closer to those in Europe and China than in other parts of the U.S., but the Central Valley has a strong rural population and diverse landscape.

This high rate of electric vehicle adoption in California is likely due to extensive legislation, including tax incentives and financial support, that has helped encourage electric vehicle use and the purchase of electric vehicles by individuals and businesses.

California is an example of how the already rapid growth of the electric car market can be further strengthened. The creation of legislation stimulating the market for electric vehicles and infrastructure has led to market growth.

2. Legislative changes

This will lead to future changes in U.S. law. California may have had an early impact, but federal and state laws across the country promise to help the rest of the country catch up. Highlights include an increase in the tax credit for electric cars. The amount has been increased to $10,000, which allows for a $10,000 rebate on purchasing an electric car. Despite the intense debate, much of Biden's economic plan included $1.740 billion in investments in electric vehicles in a wide range of industries.

However, the best examples vary from state to state. It's impossible to try to list them all. But so far, the only states without a definite incentive are the Dakotas, Kansas, Kentucky and West Virginia. I could list some of the new tax benefits, but if you are reading this article, then reading this article has already been a new experience for you.

3. Technological improvements

It goes without saying that technology related to electric vehicles is advancing rapidly, and Morning Brew wrote an excellent article summarizing these statistics. The cost of an electric car battery (which accounts for about 35% of a car's cost) has dropped from $1,200 per kilowatt-hour to $157 per kilowatt-hour since 2008. The overall concern for potential buyers and investors has quadrupled over the past nine years. Finally, the life of these batteries has been greatly increased to more than 400,000 km. That's longer than expected for many cars. Reading speed has also improved but seems to have become slower and there is fewer performance data.

How to invest in electric cars

Electric cars are a growing industry. Add to that the increasingly obvious harm from climate change as people use electric cars for ethical and environmental reasons, and investors should think about how they want to get involved. 

One of the best options for property owners right now is to install electric vehicle charging stations everywhere. Regardless of how the industry develops, people will still need to charge their cars. However, as we have seen, this process is cyclical. The more infrastructure for electric cars becomes, the more electric cars are on the road and the more customers they attract. Similarly, the financial incentives for EV adoption are not limited to drivers, but incentive programs don't last forever. Many property owners can find many incentives to install electric vehicle charging stations, which can minimize the initial investment.

Interested in an electric vehicle charging station for your company? Contact us now to learn more.