Electric vehicle (EV) sales from brands like Tesla and Ford soared within the U.S. in 2022 during an otherwise slow 12 months for brand spanking new automobile transactions.

EVs still represent a small fraction of the auto market, but that’s changing quickly as sales increased by 65% last 12 months, based on latest research from Cox Automotive, a research and consulting firm.

What the research shows

Last 12 months, drivers faced high automobile prices and high gas prices alike. In what was the worst 12 months for brand spanking new automobile sales since 2011, EV sales stood out as a transparent brilliant spot:

• In 2022, 5.8% of recent vehicle sales were EVs, a rise from 3.2% the 12 months before. Greater than 800,000 EVs were sold within the U.S.

• Last 12 months, there have been 19 EV model launches or critical redesigns, which helped drive the rise in sales.

• Tesla continues to dominate the market, but the corporate’s share of all EV sales shrunk from 70% in the primary quarter of 2022 to 58.3% within the fourth quarter.

What’s next

Cox is forecasting that greater than 1 million EVs shall be sold in 2023 within the U.S. and so they’ll represent about 8% of all latest automobile sales.

• Buyers could have more options with 27 EV model launches or redesigns expected this 12 months.

• Latest EV tax credits in 2023, which may essentially amount to a $7,500 discount per vehicle, will incentivize more Americans to purchase these cars, experts say.

• Combining hybrids and “pure EVs,” about 25% of recent automobile sales in 2023 shall be electrified vehicles, Cox forecasts.

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Bottom line

Electric vehicle sales boomed within the U.S. in 2022, and all signs indicate the trend will proceed into 2023 and beyond.

Still, the U.S. is lagging behind within the transition to EVs. The Wall Street Journal reports that 10% of vehicles sold globally last 12 months were EVs, with Europe at 11% and China all the way in which as much as 19%.