Electric car sales in the United States shot up by 37% in 2016, according to Forbes. There are over 30 battery-powered and plug-in hybrid offerings, with over 159,139 vehicles in the U.S. market right now. It’s the 70 percent year-over-year increase in monthly sales, which helped build the momentum to stronger overall sales. Of course, the sales jump by 37% comes following a five percent decline in sales from 2014 to 2015.
The slight increase has spurred a new class of electric vehicles from investor-funded startups. Although, some of these companies also rely on poaching talent from premium automakers. Lucid Motors is one such company, founded in 2007 under the former name Atieva. The Menlo Park-based automaker rolled out its first electric car in 2014. Some of Lucid Motor’s investors include Venrock, China’s Beijing Automotive Industry Holding and Japan’s Mitsui.
Its first car, the Lucid Air, debuted in 2016 as a 1,000-horsepower electric luxury sedan. The model is said to rival Tesla’s acclaimed Model S.
Electric Car Sales Rose by 37%
The five models that sold at least 10,000 units in 2016 are: Tesla Model X, Tesla Model S, Nissan Leaf, Chevrolet Volt, and Ford Fusion Energi.
Presently, over half of all electric car sales in California requires a certain percentage of automaker’s sales be zero-emission vehicle. By 2020, California aims to put 1.5 million zero-emission vehicles on the state’s roads. In spite of the decline in electric car sales in the U.S. the compound annual growth rate is at 32%.
The growth has been stronger worldwide. In fact, since 2014, global electric car sales have more than doubled. The year 2016 saw a 41% increase in sales to peak 777,497 vehicles, following 72% rise in 2015.
So, what does the rise in electric vehicles demand mean for the oil and gas industry? Perhaps, it might take years or decades for the million barrels per day demand to plunge. But, it’s even more unlikely for the global oil demand to actually decrease.