EV Sales in 2016 Should Scare the Oil Industry, but 2017 Could Be a Death Blow If Tesla Can Deliver

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Overall 2016 was a big growth year with a 42% worldwide increase over 2015. Charging locations worldwide increased and battery prices continue to drop with a nearly 50% decrease over the past 3 years. This doesn’t account for Tesla’s new Gigafactory and the economies of scale that will help them lower the cost even further.

China grew the most with +85% over 2015 as a part of their big EV push to help combat pollution. They are by far the world’s largest EV market with over 350,000 EVs delivered in 2016. This is largely due to their incentive programs and their sheer size.

The US EV market grew by 36% which I’m calling strong considering the cost of gasoline has remained low due to domestic oil production along with a worldwide decrease in demand. Public charging in the US grew by 22% mostly from the Chargepoint and Tesla networks. California led the way with nearly 50% of all EV sales in the US.

The EU EV market grew by 13% which is down from the previous year likely due to the incentive changes in the Netherlands and Denmark. Honestly, if you live in that region you probably ride a bike everywhere so I’m not sure it matters much. Norway stands out with 19% of all auto sales in 2016 belonging to EVs. This is an interesting time because at this point they might be on the brink of EVs becoming the car of choice for all new buyers.

Sources

EV Volumes Global Report

Forbes article about tax credit

Gigafactory Footage

Charging Location Source