Is Usage of Public Electric Vehicles (EV) Charging Transactions Climbing?
What we're seeing
Electric Vehicles have become more popular in the U.S. with options from most major auto manufacturers as well as EV only carmakers like Tesla and Rivian. Alkami Research examined the usage of public charging station networks such as Chargepoint, EVGO, Electrify America, and Tesla Superchargers.
Transactions in our panel were lower than expected overall, but did show a sharp growth trend in 2022 through 2023, with a 110% increase in transactions comparing July 2022 and July 2023, showing some clear growth in the EV space.
So, why were transactions lower than expected in our panel? According to Kelly Blue Book, EVs made up 7.9% of auto sales in the US in Q3 of 2023. However, it is not expected to see the same proportional volume of EV charger transactions as gas station transactions. According to a Consumer Reports article, 80% of EV owners charge their vehicles at home. Charging at home is cheaper and more convenient. Additionally, it can take 30 minutes to get 150 miles of range at a public station.
Takeaway & Call to action for FIs
Understanding EV usage and adoption may influence a financial institution’s auto lending strategy. With charging a car being cheaper at home, EV buyers and/or owners could be great candidates for a Home Equity Line of Credit to finance an at-home charging station.