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U.S. EV adoption is happening faster than anticipated
EV adoption in the U.S. happening much faster than anticipated, according to an observation of research by Recurrent Auto which is focused on providing transparency and confidence in pre-owned EV transactions. The research directly contradicts and challenges a statement by Jack Hollis, the executive vice president of sales at Toyota Motor North America.
According to Hollis, consumer demand isn’t sufficient enough for the mass adoption of battery electric vehicles to develop as fast as everyone would like. He added that battery electric vehicles cost too much and that the infrastructure isn’t ready for recharging the batteries away from home.
“I don’t think the market is ready. I don’t think the infrastructure is ready. And even if you were ready to purchase one, and if you could afford it … they’re still too high,” Hollis said.
Recurrent Auto: EV adoption is happening faster than expected
In an interview with Teslarati, Recurrent CEO, Scott Case shared an observation of a study by Boston Consulting Group (BCG) which has released a market projection for EV adoption annually since 2018.
Scott told me that Recurrent noticed that BCG repeated the same analysis four times since 2018 and has gotten it wrong each time.
“What we’ve seen every time they’ve done this is that they’ve just missed their forecast and gotten too low every single time.”
He said what was really interesting was that they were seeing BCG’s forecast and noticed that despite having all of the data and models, they’ve been “systematically under forecasting how fast the EV adoption is going to happen.”
The graph above shows how the EV sales projection for 2030 by BCG changed each time it released a report. According to BCG, EV sales projections in the U.S. for 2030 continued to grow to:
- 21% in the 2018 report
- 26% in the 2020 report
- 42% in the 2021 report
- 53% in the 2022 report
What Scott and the team at Recurrent found strange was that in the course of four years, the U.S. EV sales projections for 2030 more than doubled growing from an estimated 21% to 53%.
Scott pointed out that BCG isn’t the only company that has consistently missed how quickly the auto market is transitioning.
“The market adoption is just happening faster than any moment in the past. This is not about when we get to complete it, or what the numbers have been already. It’s what the best industry experts are forecasting about how fast this is going to happen.”
“We still have eight years between now and 2030. How many more times is this going to get forecasted? Eventually, they will get it right because we’ll be in 2030 and we’ll know exactly how many cars were sold that are EVs versus combustion engines. But there’s clearly only one direction that this adoption forecast is going.”
3 Major Factors
Scott went over the three major factors BCG uses in its model.
“First, it’s what are the projections for battery prices? This is a huge component of the cost of EVs. Second, is what the vehicle selection looks like and how many automakers are adopting different models. And the third is government policy changes. When you think about those three factors and over the course of the 2018-2022 models, you can sort of understand what’s been changing.”
Scott added that there was a 97% cost reduction in lithium-ion battery prices over the past three decades up to 2018.
“Since 2018, the decrease in cost flattened out, and even over the last year, it increased somewhat because of the supply chain difficulties and global issues. That’s not what was going on in this model. It’s not the battery price changes that are causing this forecast.”
“I think what you’re seeing over the course of this four-year period is the second factor. It’s vehicle selection and it translates into how many automakers are adopting and adding vehicles to their fleet. That’s a function of how automakers understand what consumers want to buy. I would say that this is a true reflection of market demand and not any government policy whether it’s a ban or a tax credit.”
Scott pointed out that next year, the Tesla Model Y will be the global best-selling vehicle without any help from any tax credit.
“You know what car it’s knocking off? It’s the Toyota Camry.”
One thing that BCG’s 2022 forecast did not include was the impacts of the Inflation Reduction Act which was signed just last month. Another thing not reflected in the 2022 forecast was California’s proposed ban on the sale of gasoline vehicles in 2034.
“California just passed the total ban on new ICE sales in 2035. Washington State where I live has–it’s nonbinding but it’s a 2030 cut-off. I’m not sure either of those is actually going to be needed because I think that the market going to take care of the transition well before those sales projections happen.”
“The most recent run of the BCG estimate was in the spring. They ran the model in the spring and published it in June. At that point, the Inflation Reduction Act was dead. Everyone thought the EV tax credit was dead and done. That doesn’t even reflect the impact of that. I would expect the next time that this model gets to run in 2023, you’ve got the impact of the EV tax credit which is a ten-year run, and the California gas car ban for 2035.”
He also said the bans will probably not be needed due to how fast the market is transitioning to EVs before they take effect. The forecast will most likely be even higher once they account for tax credits and the changing government policies.
“There’s room to grow here.”
Note: Johnna is a Tesla shareholder and supports its mission.
Your feedback is important. If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
Tesla made a dramatic change to the Online Design Studio to show its plans for Full Self-Driving, a major part of the company’s plans moving forward, as CEO Elon Musk has been extremely clear on the direction moving forward.
With Tesla taking a stand and removing the ability to purchase Full Self-Driving outright next month, it is already taking steps to initiate that with owners and potential buyers.
On Thursday night, the company updated its Online Design Studio to reflect that in a new move that now lists the three purchase options that are currently available: Monthly Subscription, One-Time Purchase, or Add Later:
🚨 Check out the change Tesla made to its Online Design Studio:
It now lists the Monthly Subscription as an option for Full Self-Driving
It also shows the outright purchase option as expiring on February 14 pic.twitter.com/pM6Svmyy8d
— TESLARATI (@Teslarati) January 23, 2026
This change replaces the former option for purchasing Full Self-Driving at the time of purchase, which was a simple and single box to purchase the suite outright. Subscriptions were activated through the vehicle exclusively.
However, with Musk announcing that Tesla would soon remove the outright purchase option, it is clearer than ever that the Subscription plan is where the company is headed.
The removal of the outright purchase option has been a polarizing topic among the Tesla community, especially considering that there are many people who are concerned about potential price increases or have been saving to purchase it for $8,000.
This would bring an end to the ability to pay for it once and never have to pay for it again. With the Subscription strategy, things are definitely going to change, and if people are paying for their cars monthly, it will essentially add $100 per month to their payment, pricing some people out. The price will increase as well, as Musk said on Thursday, as it improves in functionality.
I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve.
The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD). https://t.co/YDKhXN3aaG
— Elon Musk (@elonmusk) January 23, 2026
Those skeptics have grown concerned that this will actually lower the take rate of Full Self-Driving. While it is understandable that FSD would increase in price as the capabilities improve, there are arguments for a tiered system that would allow owners to pay for features that they appreciate and can afford, which would help with data accumulation for the company.
Musk’s new compensation package also would require Tesla to have 10 million active FSD subscriptions, but people are not sure if this will move the needle in the correct direction. If Tesla can potentially offer a cheaper alternative that is not quite unsupervised, things could improve in terms of the number of owners who pay for it.
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Tesla Model S completes first ever FSD Cannonball Run with zero interventions
The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end with no interventions.
A Tesla Model S has completed the first-ever full Cannonball Run using Full Self-Driving (FSD), traveling from Los Angeles to New York with zero interventions. The coast-to-coast drive marked the first time Tesla’s FSD system completed the iconic, 3,000-mile route end to end, fulfilling a long-discussed benchmark for autonomy.
A full FSD Cannonball Run
As per a report from The Drive, a 2024 Tesla Model S with AI4 and FSD v14.2.2.3 completed the 3,081-mile trip from Redondo Beach in Los Angeles to midtown Manhattan in New York City. The drive was completed by Alex Roy, a former automotive journalist and investor, along with a small team of autonomy experts.
Roy said FSD handled all driving tasks for the entirety of the route, including highway cruising, lane changes, navigation, and adverse weather conditions. The trip took a total of 58 hours and 22 minutes at an average speed of 64 mph, and about 10 hours were spent charging the vehicle. In later comments, Roy noted that he and his team cleaned out the Model S’ cameras during their stops to keep FSD’s performance optimal.
History made
The historic trip was quite impressive, considering that the journey was in the middle of winter. This meant that FSD didn’t just deal with other cars on the road. The vehicle also had to handle extreme cold, snow, ice, slush, and rain.
As per Roy in a post on X, FSD performed so well during the trip that the journey would have been completed faster if the Model S did not have people onboard. “Elon Musk was right. Once an autonomous vehicle is mature, most human input is error. A comedy of human errors added hours and hundreds of miles, but FSD stunned us with its consistent and comfortable behavior,” Roy wrote in a post on X.
Roy’s comments are quite notable as he has previously attempted Cannonball Runs using FSD on December 2024 and February 2025. Neither were zero intervention drives.
Elon Musk
Tesla removes Autopilot as standard, receives criticism online
The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders.
Tesla removed its basic Autopilot package as a standard feature in the United States. The move leaves only Traffic Aware Cruise Control as standard equipment on new Tesla orders, and shifts the company’s strategy towards paid Full Self-Driving subscriptions.
Tesla removes Autopilot
As per observations from the electric vehicle community on social media, Tesla no longer lists Autopilot as standard in its vehicles in the U.S. This suggests that features such as lane-centering and Autosteer have been removed as standard equipment. Previously, most Tesla vehicles came with Autopilot by default, which offers Traffic-Aware Cruise Control and Autosteer.
The change resulted in backlash from some Tesla owners and EV observers, particularly as competing automakers, including mainstream players like Toyota, offer features like lane-centering as standard on many models, including budget vehicles.
That being said, the removal of Autopilot suggests that Tesla is concentrating its autonomy roadmap around FSD subscriptions rather than bundled driver-assistance features. It would be interesting to see how Tesla manages its vehicles’ standard safety features, as it seems out of character for Tesla to make its cars less safe over time.
Musk announces FSD price increases
Following the Autopilot changes, Elon Musk stated on X that Tesla is planning to raise subscription prices for FSD as its capabilities improve. In a post on X, Musk stated that the current $99-per-month price for supervised FSD would increase over time, especially as the system itself becomes more robust.
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (Unsupervised FSD),” Musk wrote.
At the time of his recent post, Tesla still offers FSD as a one-time purchase for $8,000, but Elon Musk has confirmed that this option will be discontinued on February 14, leaving subscriptions as the only way to access the system.
Tesla makes big Full Self-Driving change to reflect future plans
Tesla Model S completes first ever FSD Cannonball Run with zero interventions
