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Electric vehicle registrations in the US in 2020 reached a record market share of 1.8%, demonstrating increased consumer interest for electric vehicles.

What Happened

That's according to a study by IHS Markit Ltd (INFO) that was released on Friday, Feb. 19. The report also says that December 2020 had the highest monthly share for new EV registrations, at 2.5%. 

While roughly 1 in 40 registrations may seem like a drop of the bucket, it's the highest seen since IHS started tracking new vehicle registrations by fuel type. IHS market defined an EV as an automobile powered solely by electricity. No other power source counted toward the EV registration market-share tally.

Why It Matters

Elon Musk’s Tesla Inc (TSLA) stands to benefit from increased registrations. According to a report by Automotive News, Tesla took four out of the top five spots for new EV registrations in 2020. Tesla accounted for 79% of the total, with 200,561 EVs registered. That represents a 16% increase from 2019, which saw 172,438 Tesla vehicles registered. The Model 3 and Model Y led the way, with 95,135 and 71,344 vehicles registered, respectively.

General Motors Company (GM) was the only company besides Tesla to crack the top 5 for US EV registrations in 2020. Its Chevy Bolt compact had 19,664 registrations in 2020. Rounding out the top five for 2020 was Tesla's Model X with 19,652 registrations and the Model S with 14,430. IHS Markit forecasts EV sales in 2021 will surpass 3.5% nationally.