Despite major government incentives and a growing consumer shift toward EVs, U.S. EV upstarts are facing major headwinds. The race is on to secure a spot in the future EV market, but supply chain delays, plummeting stock prices, and competitive legacy OEMs are posing major hurdles for the top contenders. Many of these upstarts are securing early deals with corporate buyers and investors, but are these partnerships enough to help the upstarts maintain launch velocity - and staying power?

With transportation accounting for the largest portion of US annual greenhouse gas emissions, electrifying the sector is a critical step to reducing U.S. emissions at scale. In a previous article, we calculated the major cost savings associated with EV ownership but dissected existing barriers to widespread EV adoption such as high upfront costs and range anxiety. Given unprecedented shifts in the transportation sector during the pandemic and post-IRA passage, this article presents the updated economic calculus of substituting an ICE vehicle for an EV.

Comprising over a quarter of annual emissions, the transportation sector is the largest contributor to greenhouse gas emissions in the United States. Of that quarter, light-duty vehicles account for 59%, meaning that consumer vehicles are responsible for more than an eighth of our entire carbon footprint.