2023 Was the Year of the Electric Vehicle

This Blog is part of NRDC’s Year-End Series Reviewing 2023 Climate & Clean Energy Developments.  

Last year, I wrote about how states are embracing the transition to clean cars. As 2023 comes to a close, it’s safe to say that this year was the year the United States hit the electric accelerator (in all its zero torque and smooth acceleration glory) towards a clean transportation future.

Demand for EVs has continued to grow. Sticker prices have continued to decline as states have been setting vital foundational standards that will help to ensure that the supply—and the benefits of electric vehicles—come to their states.  And a record level of investments have been made in manufacturing EVs domestically as well as increasing charging infrastructure throughout the country. 

Electric Vehicles Sales Continued to Increase 

One thing from 2023 is clear: drivers increasingly want electric vehicles. In just five years, EV sales have grown by 375% in the United States, according to auto market analysts at Baum and Associates. 

Atlas Public Policy notes that 2023 is the first time more than one million EVs will be sold in a year in the United States. In September, sales of EVs reached 11% of all new vehicles sales in the United States. And in California, one in every four cars sold in the state this year were electric. 

Not only are sales of EVs increasing, but automakers are producing more and more types of EVs, meaning that there are more models that fit consumers driving needs. In the first half of 2023, there were 103 EV models produced—including cars, SUVs, trucks and vans.  

Prices of EVs continued to Decrease

One perceived barrier of widespread EV adoption is the notion that the upfront cost of an EV is higher than that of a comparable gasoline vehicle. Of course, it is already cheaper to own and operate an electric vehicle than a gasoline vehicle (due to lower fueling and maintenance costs). And now EVs are rapidly approaching upfront cost price parity with gas cars.

The chart below from the U.S. Energy Information Administration shows that over the past year and a half, the price of EVs has continued to decrease at a rapid pace. And this chart does not reflect any consumer incentives (such as state rebates or the federal tax credit, which can provide an additional incentive of up to $7,500). With these incentives, EVs could soon have average prices at or below those of gasoline vehicles. 

And the prices for used EVs are also continuing to decrease, which is important since the majority of Americans purchase their vehicles in the used market. In July 2023, used EVs were 28% cheaper than in 2022, with 40% of these vehicles being less than $30,000. 

Advanced Clean Cars II—the Foundational Policy 

In addition, states across the country have continued to be leaders in the clean car space—helping to ensure their states can reap the maximum benefits of EVs in a planned, phased manner, all while sending a vital signal to the automotive industry that they are all-in on zero-emission transportation. 

By the end of 2022, only four states outside of California had adopted the Advanced Clean Cars II (ACCII) standards that would require automakers to sell an increasing number of new zero-emission vehicles in those states (e.g. 82 percent new vehicle sales being electric by 2032). One year later, twelve states have shown leadership and adopted these rules that will provide not only a win for the climate, but also a win for air quality, human health, and the economy. 

As of publication, the following states have adopted ACC II—California, Colorado, Delaware, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Vermont, Virginia, and Washington. These states make up more than 32 percent of the new vehicle sales market. 

Together, these regulations will reduce harmful greenhouse gas emissions by more than 1,000 million metric tons by 2050—which is like shutting down 2,513 natural gas power plants for one year.  

Charging Infrastructure Expanded 

Refueling an electric vehicle is different than refueling a gasoline or diesel vehicle. For drivers who have access to charging at home or at work, they may never need to use a public charging station. But for those who don’t have access to home or work charging, and for long distance trips, building out a robust network of charging stations throughout the United States is important. Strong public policy is helping to drive significant investments in charging infrastructure, with 600 percent growth in announced and awarded investments in public EV charging since 2018.

In 2023, we saw many positive developments related to the expansion of EV charging stations throughout the country. There are currently more than 60,000 public charging locations with 160,000 ports throughout the United States. In the second quarter of 2023, fast charging stations (known as DC charging stations) grew 6.1% over the first quarter of 2023. 

This data does not include the infrastructure that will be built out over the next few years from the Bi-partisan Infrastructure Law ($7.5 billion), or private company investment announcements, such as the seven major automakers and their plan to build a network of 30,000 high-speed chargers by 2030 (with the first to open in 2024). 

This year, every major EV manufacturer also announced plans to adopt Tesla’s proprietary charging port—which will not only help to standardize the charging industry but will also open up Tesla’s robust Supercharger network to all EV drivers. 

Looking Forward

2023 has set an important foundation for 2024, when we are anticipating continued growth in not only sales of EVs and construction of charging stations, but in additional efforts to reduce tailpipe emissions from the gas cars on the road and the United States' reliance on oil. This includes finalization of the EPA light-duty vehicle tailpipe emission standards as well as the Corporate Average Fuel Economy Standards. 

But for now, let’s celebrate the remarkable year for zero-emission transportation. The clean cars future is here, and it’s looking electrifyingly bright.