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How EV adoption is soaring in unlikely circumstances, and what could make it better

EV Charging Reliability Transparency Act, sponsored by FLO and ChargerHelp! (CNW Group/FLO)

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The adoption of electric vehicles has continued to skyrocket over the past several years despite challenging supply chain conditions, less-than-ideal geopolitical scenarios, lingering effects of the COVID-19 pandemic, and the soaring cost of EV materials. How this optimism remains was examined in a recent white paper from Cox Automotive, which outlined how EVs continue to defy all odds and gain market share, despite monumental challenges standing in the sector’s way.

EV Adoption grows despite rough conditions

The state of EV adoption is relatively healthy, with more Americans buying EVs than ever despite increased costs and extended wait times for delivery. Automakers across the EV manufacturing industry have been forced to adjust prices and vehicle lineups due to the increased cost of materials and supply chain deals. Tesla, for example, axed the $35,000 Standard Range+ Model 3, and its most affordable vehicle now starts at well over $40,000. Rivian was forced to push prices upward due to materials costs soaring after Russia’s invasion of Ukraine, and these examples are just two of many.

Supply chain bottlenecks have also forced consumers to push back wait times for EVs considerably. Some configurations of EVs are not available until next year due to extensive order logs; take the Long Range Tesla Model 3, for example, which won’t be available until 2023 because of its heavy demand.

Despite this, EV adoption has increased every year since 2019. “Americans are buying EVs at a record pace despite rising prices and long waits for delivery. The fleet industry is also taking note with fleet operators highly motivated to replace their gas-powered fleets with EVs to achieve sustainability goals, drive efficiency and reduce total cost of ownership,” Cox Automotive wrote in the summation of its white paper.

Price Parity and the EV Tax Credit

Price parity has always been talked about when it comes to EVs. It does not take a genius to figure out that the average person will choose an affordable car over an expensive one, even if the expensive one will not require weekly stops at the pump. However, one of the biggest things keeping EVs from extremely rapid adoption is the prices of the cars themselves, which have increased considerably over the past year due to materials costs soaring.

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Luckily, consumers can take advantage of the Inflation Reduction Act, which will provide EV buyers with tax credits based on where their vehicle was manufactured and whether the car equips a U.S.-manufactured battery. “Tax incentives available as part of the Inflation Reduction Act of 2022 will be critical to consumer adoption, helping offset the cost of pricey EVs.” This is a key point in the mass adoption in EVs, and consumers will likely stick to gas-powered cars as long as they are able to if they are more affordable than a quality EV.

Supply Chain Disruptions have slowed EV adoption considerably

Related to other points already made, supply chain disruptions and constraints are slowing EV adoption. U.S.-based EV manufacturers are too reliant on foreign companies for parts, Cox said. Automakers are pushing to produce battery packs and other parts in the U.S., which will eventually help combat slow logistics times.

“Global computer chip and material shortages are impacting production, raising the price of new and used vehicles, and contributing to long waits to buy new EV models.” Consumers want affordable and they want it now. Costs will continue to remain high, and wait times will stay long if U.S. automakers do not adopt domestic supply chain strategies.

Superior EV tech is keeping the U.S. competitive

Domestic supply chain bottlenecks may have some consumers willing to spend a little extra opting for other vehicle options. If someone is willing to spend $160,000 on a car and they can buy a 2022 Porsche 911 GT3 and get it in two weeks, they’re more likely to buy that instead of waiting months for a Tesla Model S Plaid if environmental reasons and fuel savings are not being considered. Tech and the innovations of battery chemistries and recycling are keeping the U.S. automakers in focus. If battery makers can develop various battery chemistries comprised of materials that can be sourced in the U.S., wait times will reduce and cars will have more availability.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla dominates in the UK with Model Y and Model 3 leading the way

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Credit: Tesla China

Tesla is dominating in the United Kingdom so far through 2025, and with about two weeks left in the year, the Model Y and Model 3 are leading the way.

The Model Y and Model 3 are the two best-selling electric vehicles in the United Kingdom, which is comprised of England, Scotland, Wales, and Northern Ireland, and it’s not particularly close.

According to data gathered by EU-EVs, the Model Y is sitting at 18,890 units for the year, while the Model 3 is slightly behind with 16,361 sales for the year so far.

The next best-selling EV is the Audi Q4 e-tron at 10,287 units, lagging significantly behind but ahead of other models like the BMW i4 and the Audi Q6 e-tron.

The Model Y has tasted significant success in the global market, but it has dominated in large markets like Europe and the United States.

For years, it’s been a car that has fit the bill of exactly what consumers need: a perfect combination of luxury, space, and sustainability.

Both vehicles are going to see decreases in sales compared to 2024; the Model Y was the best-selling car last year, but it sold 32,610 units in the UK. Meanwhile, the Model 3 had reached 17,272 units, which will keep it right on par with last year.

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Tesla announces major milestone in the United Kingdom

Tesla sold 50,090 units in the market last year, and it’s about 8,000 units shy of last year’s pace. It also had a stronger market share last year with 13.2 percent of the sales in the market. With two weeks left in 2025, Tesla has a 9.6 percent market share, leading Volkswagen with 8 percent.

The company likely felt some impact from CEO Elon Musk’s involvement with the Trump administration and, more specifically, his role with DOGE. However, it is worth mentioning that some months saw stronger consumer demand than others. For example, sales were up over 20 percent in February. A 14 percent increase followed this in June.

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Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

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Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

Tesla partners with Lemonade for new insurance program

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Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

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Tesla Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

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Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

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“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

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