A new report suggests no state is adopting plug-in vehicles faster than Colorado.
The latest data come from the Northeast States for Coordinated Air Use Management, a regional association of air pollution agencies along the East Coast. The group produced the report to measure the impact of state-level EV policies.
By analyzing national vehicle sales figures, the consortium found EVs accounted for 25.3 percent of new cars sold or leased in Colorado in the third quarter of 2024. California, by comparison, reported a 24.3 percent EV market share over the same period.
The small difference means Colorado has overtaken the Golden State, which has spent years setting the pace for EV adoption nationwide. The states with the next largest EV market share are Washington, Nevada, Oregon and New Jersey.
“It’s the first time any state has exceeded the EV market share in California,” said Will Toor, the director of the Colorado Energy Office. “It just illustrates all the work done in Colorado to make sure that EVs are affordable and charging is available and convenient.”
Gov. Jared Polis also celebrated Colorado pulling ahead of other states in the race to transition away from fossil fuel-powered vehicles. In a press release sent on Wednesday, he said Colorado residents have opted for EVs because they’re fun to drive, quiet and affordable, partially due to generous rebates pushed by his administration.
The latest surge in EV adoption comes amid what’s likely a peak of incentives available to Colorado residents. The state currently offers a $5,000 EV tax credit, but the discount shrinks to $3,500 starting next year. The transition team for President-elect Donald Trump has also signaled its intentions to kill the federal EV tax credit, which can cut the cost of a new EV by up to $7,500.
The new rankings, however, measure sales of all cars capable of plugging into an outlet. The category includes battery-powered vehicles and plug-in hybrids, which carry an internal combustion engine and a rechargeable battery pack. California had a slightly higher market share for pure battery-powered EVs in the third quarter of 2024, according to the Northeast States for Coordinated Air Use Management.
Jeremy Hunt, an EV analyst for the consortium of air quality regulators, said the data is a “snapshot,” and he wouldn’t be surprised if the EV adoption ranking shifts in the future. At the same time, the report reveals some interesting trends, like Colorado earning the top spot by embracing EVs made by manufacturers other than Tesla.
In California, Tesla accounted for 10.6 percent of passenger cars sold during the third quarter of 2024 compared to 4.5 percent in Colorado. By adopting plug-in hybrids and non-Tesla EVs at a faster clip, Colorado nevertheless managed to surpass California’s EV adoption rate.
Colorado Nissan dealers are likely one factor driving the pattern. In the last year, the car sellers have leveraged the state EV tax credit to offer rock-bottom lease deals on the Nissan Leaf and Nissan Ariya, two relatively affordable EV models. Boulder Nissan, for example, will lease an entry-level Nissan Leaf for $5 per month after a Colorado resident pays roughly $1,900 in dealer fees plus relevant sales taxes.
A similar report from the Colorado Auto Dealers Association released in October found Colorado ranked second in the country for EV market share. Those figures measured EV sales during the first three quarters of 2024 rather than only the third quarter of 2024. Both reports are based on data compiled by Experion, one of the country’s top sources of automotive sales data.
Margo Finer, a spokesperson for the auto dealers association, told CPR News the group was still reviewing the latest report. If Colorado has taken the lead for EV adoption, Finer said it would be great news, but her group wasn’t ready to confirm the updated ranking.
