Affordability is a key factor shaping the pace of electric vehicle (EV) adoption. This brief draws on fueleconomy.gov data to unpack how the availability of affordable EVs and gas-powered vehicles changed from model year 2016 through 2025.
Across the entire U.S. vehicle market, fewer affordable vehicles are available in 2025 than in the past. This is due to many factors, including inflation and a shift in automakers' focus on larger vehicles, which are popular among American drivers and have higher profit margins.
While those trends are not specific to EVs, increasing battery sizes are contributing to the delay in the arrival of affordable EVs. These trends are also not all unique to the United States, although may be more intense due to U.S. driver preferences. Looking ahead, electric vehicles have the potential to get much cheaper than gas vehicles as battery costs fall, production capacity increases, and the supply chain matures.
