Demand for Tesla EVs slows in the heartland markets — S&P Global Mobility

Despite the development of a national charging infrastructure, coastal America continues to lead in EV registrations. However, states continue lining up to get their share of the $5 billion the U.S. has invested in the Bipartisan Infrastructure Law.

However, according to S&P Global Mobility’s analysis, outside the large coastal cities, EV retail registrations have yet to take hold. With the Los Angeles and San Francisco metropolitan areas accounting for one-third of the market’s overall shares along the coastlines for EVs. There are 22 midwestern states that account for 27.1% of all vehicle sales in the U.S. From 2021 until now, the adoption representation of EVs has been unchanged.

Furthermore, of the 13 markets that increased their share for 2022 versus 2021, most were in the “smile” states, or Atlanta, Austin, Dallas, and Houston. In the major cities of the “Heartland” states, only Chicago, Las Vegas, Missoula, and Salt Lake City recorded share gains.

The share leaders versus inland market share gainers when comparing inflow movement into BEVs from the coastal market indicate a few differences in the buyer demographics. Just more of those people tend to live in coastal states. 

However, due to its ownership of 65% of all BEV shares, Tesla continues to dominate in all markets. The demand for Tesla in the heartland markets, however, appears to be slowing down, as indicated by the shift in market shares from year to year. 

“There is no question that the lack of charger availability is an influence in midwestern states, but it is not the issue,” claimed James Martin, associate director of consulting for S&P Global Mobility. “Another important issue is the availability of a product in form factors that people are willing to buy.” 

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