U.S. EV Sales Grow 65% in 2022 Despite Overall Auto Market Decline


Sales of electric vehicles in the U.S. grew by 65% in 2022, despite a decline in total new vehicle sales for the first time since 2011, new data from Kelley Blue Book showed.

According to Kelley Blue Book, for the first time in just over a decade, Americans bought fewer new cars than the year before. However, EV sales grew year over year by a significant margin.

EV sales topped 800,000 units and will likely continue to rise for years to come. Cox Automotive suggested 2023 will be the first year EV sales will beat 1 million units.

Boosted by government incentives like President Joe Biden’s Inflation Reduction Act (IRA), which intends to push consumers toward EVs, 2023 could be the year of the electric car. Many manufacturers are planning to roll out exciting and competitive models this year.

Despite a slight decrease in market share from 70% in Q1 to 58.3% in Q4, Tesla still dominates the U.S. EV market. Over the past few years, many companies have come with competitive and more affordable options, but car buyers are still tending to stick with Tesla based on EV tech, charging infrastructure and performance.

Tesla is off to a hot start in 2023. After cutting prices in the U.S. market by as much as $13,000, demand seems to have increased as the company’s inventory is dwindling.

The Model 3 and Model Y were the automaker’s best sellers.

More positive news: the average cost of an EV fell 5.5% in December to $61,448.

We thank Teslarati for reprint permission.

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