Although plug-in electric vehicle (PEV) sales have tripled between 2014 and 2018, their share of the market stood at 1.2 percent in 2018 and is projected to be a modest 7.6 percent in 2026. Although being more environmentally benign in terms of greenhouse gas emission levels, the advantages offered by battery-powered vehicles are set off mainly by high initial costs and limitations regarding battery range, as the distance covered per trip by their internal combustion-propelled competitors continues to be unmatched. Notwithstanding the low market share, manufacturers are continuing to add new electric vehicle models into their range of vehicles offered.
Tesla Inc., led by Elon Musk, continues to dominate the U.S. electric vehicle market with around 160,000 electric vehicles sold in the United States in 2019. Tesla released their new Model 3 in 2017 in an effort to target more price-conscious EV consumers while attempting to alleviate investor concerns with somewhat disappointing sales of their luxury models, Model S and Model X.