Electric Vehicles Aren't Part Of The American Dream... Yet
In some ways, it's easy to draw some parallels between the electric car era and the dawn of the automobile, or the post-war boom that gave us affordable cars, the Interstate highways, and drive-thru restaurants around the mid 20th Century. In other ways, it feels more like the malaise era, when fuel-efficient compacts like the Honda Civic were in, muscle cars were out, and nobody could afford the really cool stuff.
Tesla Logo Correct
Tesla
Tesla, Inc. is an American electric vehicle manufacturer largely attributed to driving the EV revolution. Through the Model S and subsequent products, Tesla has innovated and challenged industry conventions on numerous fronts, including over-the-air updates, self-driving technology, and automotive construction methods. Tesla is considered the world's most valuable car brand as of 2023, and the Model Y the world's best-selling car in the same year, but the brand's greatest achievement is arguably the Supercharger network of EV charging stations.
The electric car has arrived. We can go hundreds of miles on a single charge, and there are models like the Nissan Leaf that can be had for under thirty grand. But, Statista points to somewhere around 291 million vehicles registered and legal in the US at the end of 2023, with the most generous estimates suggesting that EVs make up anywhere from 1-2% of the total. It's a fast-growing niche, but it's still a niche, which begs the question... why aren't Americans fully on board just yet? A new study from Payless Power may hold the answer.
The following is based primarily on a study published by Payless Power, with any conclusions and opinions drawn thereupon being our own, unless otherwise attributed.
How Did Cars Become A Part Of The American Dream In The First Place?
1908 Ford Model T side profile
It's estimated that one in ten people owned a car in the US in 1920, then one in five owned a car in 1930, and that growth would slow by 1940, owing to the Great Depression, with one in three owning a car by then. But, by the 1960s, it's estimated that 80% of American homes had at least one car in their driveway, compared to 60% at the start of the previous decade.
Key changes driving this boom in automotive demand include:
- The building of the Interstate system was underway, developed by Dwight D. Eisenhower's Federal-Aid Highway Act of 1956.
- The federal minimum wage went up from 75 cents an hour to a dollar an hour, which was just enough to keep up with inflation, but the median family income increased from around $3,300 to $5,600 over the course of the decade, according to the Census Bureau.
- Car prices increased over the course of the 1950s, but not as quickly as family income was growing. A new car in 1950 might have cost you around $1,500, while the same car would cost a little over $2,000 by 1960. Adjusting for inflation, that would mean that would be like if the price of a new car only went up from around $20,000 to $2,150 between 2010 and 2020.
The boom in automotive ownership that took place between the end of World War II and the start of the 1960s was more than just the natural, steady growth of an industry, it was the result of a major change to American income and infrastructure. Wages were on the rise, highways were connecting the country, and gas stations were popping up like wildflowers. This is how cars went from being regarded as something of a luxury item to a necessity.
Why Aren't Electric Vehicles There Yet?
2025 Mercedes-Benz eSprinter Charging Port
Put simply, it's not the product. We can talk about range, sure. A Ford Explorer will go around 500 miles on a full tank of gas, while an F-150 Lightning with the standard battery pack might only do about half that. But when was the last time you drove five hundred miles on a single fill-up?
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Some key takeaways from that study by Payless Power should help to shed a light on what's missing:
- 53% of Americans believe that home ownership is necessary for EV ownership, noting the relatively sparse charging infrastructure in comparison to gas stations, and the inability to safely charge at home without a garage or driveway of your own.
- 71% of ICE drivers say that they would gladly buy an EV if charging stations were as common as gas stations.
- Consumers believe that a minimum annual income of $82,991 is necessary to comfortably afford an EV.
That last number is actually right around the median household income, according to the Bureau of Labor Statistics, which suggests most households are making around $82,586 a year. But that's household income, not individual income, and it still comes in a few hundred dollars shy of what people think they need to buy an EV. In the late 1950s, you didn't have to think twice about buying a car, as long as you were taking in a decent middle-class income. If you were making $3,000 a year, and a car costs $1,600, the only question left was "Ford or Chevy?"
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There has been some talk to the effect that the current administration's relative disinterest in EV infrastructure and tax credits may encourage on-the-fence consumers to finally get themselves a Tesla Model Y while the getting's good, but the increase in sales owing to FOMO would likely amount to a blip on the radar in comparison to the mass adoption required to truly say that electric is the new ICE.
We Need Greater Infrastructure, Higher Income, And More Affordable EVs
Lectron Charging Rivian charging with Teslas
Reaching out to the team behind the study, they had this to say:
Our study really shines a light on the dual hurdles holding back wider EV adoption. With 57% of Texans listing limited battery range and a shortage of charging stations as the major concerns, and 52% opposing the high price tag of electric vehicles, it’s clear that our current infrastructure and affordability aren’t keeping up with demand. It is a clear call for decisive action to build robust charging networks and offer more competitive pricing so that EVs can be a practical option for everyday Americans.
We couldn't have said it better ourselves. Consumer technology doesn't always make waves on its own. The TV was invented in the 1920s, but didn't become commonplace in the US until the post-war era, when ownership went from 8,000 units nationwide to 45.7 million between 1946 and 1960. The personal computer, the Kenbak-1, was designed in 1971, and sold for as much as a new car. It wasn't until the availability of cheaper PCs in the mid-1990s, and the growth of the Internet, that you could find one in every other home in America.
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Are we essentially stating the obvious here? You could say that. But now we've got the data to back it up: most Americans just won't feel confident buying an EV until the prices come down and the infrastructure expands.
