Over the past decade, the electric vehicle (EV) market has seen significant strides, thanks to remarkable advancements in battery technology. As battery energy densities have soared and production costs have plummeted, EVs are now on a trajectory to compete head-to-head with traditional internal combustion engine (ICE) vehicles. While early critics have doubted the viability and longevity of EVs, recent developments reveal that not only are EVs here to stay, but they are poised to dominate the future of transportation.
At the start of 2024, headlines claimed that the electric vehicle revolution might be stalling. Sales appeared to be slowing, and critics—many of whom have consistently dismissed EVs—were quick to declare the end of the EV era. The skepticism ranged from concerns about EV range and charging infrastructure to the belief that EVs would remain reliant on subsidies, preventing them from truly competing with gas-powered cars. Some even predicted that consumers were losing interest, convinced that EVs were nothing more than a fleeting trend.
However, the so-called stall in the EV market proved to be temporary. By mid-year, sales had reaccelerated, with EVs capturing an increasing share of the U.S. automotive market. In fact, by the third quarter of 2024, EVs had reached a record market share in the United States. The shift has been even more pronounced in regions like Europe and China, where aggressive policies supporting electrification and renewable energy have further accelerated adoption.
Though EVs have not yet dominated every segment of transportation—only 4% of the global passenger car fleet is electrified, along with 23% of buses and less than 1% of delivery trucks— the momentum is undeniable. As history has shown with past technological shifts, once a new technology reaches around 5% adoption, it is unlikely to recede. The EV market has crossed this critical threshold in numerous countries, signaling that the revolution is far from over. In fact, it’s just beginning.
One of the primary drivers of the rapid growth of EVs has been the significant advances in battery technology. Battery prices have dropped precipitously over the past decade, with further declines expected. According to Goldman Sachs Research, average battery prices could fall to as low as $80 per kilowatt-hour (kWh) by 2026—a nearly 50% drop from 2023 prices. These reductions are being fueled by improved manufacturing techniques and increases in energy density, as well as a decline in the cost of green metals used in battery production.
Battery improvements are critical because they directly affect the cost, range, and performance of EVs. As batteries become cheaper and more efficient, EVs will no longer need subsidies to compete with ICE vehicles on price. For many models, that tipping point could come within the next two years, radically changing the competitive landscape of the auto industry.
For consumers, these improvements will translate into more affordable EV options, longer ranges between charges, and reduced reliance on government incentives. With EVs poised to match or even undercut the price of gas-powered vehicles in the near future, price will no longer be a barrier to mass adoption.
One of the most persistent myths surrounding EVs is related to charging time and range anxiety. Many prospective EV buyers worry about the time it takes to charge an electric car and whether the current charging infrastructure can support their daily needs. However, a closer look reveals that these concerns are largely misplaced.
The vast majority of drivers in the U.S. travel fewer than 100 miles per day, with the average daily mileage sitting around 40 miles. For the average driver, this means that daily charging is unnecessary. EVs, unlike ICE vehicles, are charged at home—similar to how we charge our smartphones. If an EV owner charges their car overnight at home, they wake up with a full battery every morning, eliminating the need for frequent trips to public charging stations.
While it’s true that charging an EV at a public station takes longer than refueling at a gas station—30 to 40 minutes compared to 5 to 8 minutes for a gas fill-up—this comparison misses a critical point. Most EV owners will rarely, if ever, need to visit a public charger. Instead, they’ll enjoy the convenience of a fully charged car every morning.
Moreover, for those without access to home charging, such as people living in apartment complexes or using street parking, charging infrastructure is rapidly expanding. Apartment complexes and commercial parking lots are increasingly adding charging stations as EV adoption rises, and public charging networks continue to grow, making it easier for everyone to charge their vehicles.
One of the biggest advantages of EVs is their simplicity. A typical internal combustion engine (ICE) vehicle has hundreds of moving parts, from pistons and gears to valves and belts. These parts are susceptible to wear and tear, and they require regular maintenance to keep the car running smoothly. In contrast, EVs have significantly fewer moving parts. Without the need for a combustion engine, exhaust system, or complex transmission, EVs are far less prone to breakdowns.
This simplicity translates into significantly lower maintenance costs for EV owners. According to industry data, the maintenance costs for an EV are about 50% lower than those for a traditional gas-powered vehicle. Oil changes, transmission repairs, and exhaust system fixes are things of the past for EV owners. The main components that require attention in an EV are the tires, brakes (which wear out less quickly due to regenerative braking), and, eventually, the battery.
EVs offer not only cost savings but also performance benefits that make driving them a more enjoyable experience. One key advantage of electric motors is that they deliver power instantly. Unlike gas engines, which take time to build up power, electric motors provide maximum torque from the moment the driver hits the accelerator. This makes EVs exceptionally quick off the line, with acceleration times that rival or surpass many performance-oriented combustion cars.
For instance, Tesla’s Model S Plaid, one of the fastest production cars in the world, can go from 0 to 60 miles per hour in under two seconds—a feat that no gas-powered car can match. But this superior acceleration isn’t limited to luxury or sports EVs. Even affordable models like the Chevrolet Bolt or the Nissan Leaf offer rapid acceleration compared to their ICE counterparts.
In addition to their impressive speed, EVs are incredibly quiet. Because they lack the explosive combustion process and complex mechanical systems of gas engines, EVs produce very little noise. For drivers, this means a peaceful, serene driving experience. For cities, the widespread adoption of EVs promises to reduce noise pollution, making urban environments quieter and more livable.
As more drivers switch to EVs, the infrastructure supporting ICE vehicles—particularly gas stations—will begin to shrink. The relationship between gas stations and gasoline-powered cars is a classic example of a positive feedback loop: the more gas stations there are, the more convenient it is to drive, which in turn supports higher car ownership, which makes gas stations more profitable.
However, as EVs take market share from ICE vehicles, gas stations will see a decline in customer traffic. Since gas stations have significant fixed costs, fewer customers could make it harder for many stations to stay in business. This could lead to closures or conversions into EV charging stations, further accelerating the shift away from gas-powered vehicles.
As gas stations become less common, driving an ICE vehicle will become increasingly inconvenient. This “doom loop” effect will push even more people to consider EVs, creating a self-reinforcing cycle that accelerates the transition to electric transportation.
While the U.S. has made progress in electrifying its automotive fleet, other countries—particularly China—are racing ahead. Chinese automaker BYD has emerged as a major player in the global EV market, building affordable electric vehicles that appeal to a wide range of consumers. BYD’s aggressive push into the EV space has caught the attention of automakers around the world, especially in the U.S. and Europe, where established companies are grappling with how to compete.
Tesla remains the dominant player in the U.S. EV market, but even Tesla has faced challenges recently, losing market share to both domestic and foreign competitors. While Tesla pioneered many of the technologies that have driven the EV revolution, it now finds itself in an increasingly crowded market. To maintain its leadership, Tesla—and the broader U.S. auto industry—will need to innovate continuously and ramp up production to meet the growing demand for EVs.
Beyond the direct benefits to consumers, the rise of EVs represents a crucial step in the fight against climate change. Transportation accounts for a significant portion of global greenhouse gas emissions, and switching from fossil-fuel-powered vehicles to electric ones powered by renewable energy can dramatically reduce our carbon footprint.
As battery prices continue to fall and EV performance continues to improve, there is every reason to believe that EVs will become the dominant mode of transportation in the not-too-distant future. Their inherent advantages—lower costs, greater convenience, superior performance, and environmental benefits—make it clear that EVs are not just a passing fad. The EV revolution is here, and it’s only going to get bigger.
