The Worldwide EV Report 2024

The costs and incentives of electric vehicles around the world

With the ever-present threat of climate change, more and more people are finding ways to reduce their reliance on fossil fuels and shrink their carbon footprint. One of these ways is ditching traditional polluting gas and diesel cars in favour of electric vehicles (EVs). In fact, many people have already adopted electric cars and are using them to learn to drive.

Governments worldwide are promoting the shift to electric vehicles (EVs). The UK plans to ban new petrol and diesel car sales by 2035, a delay from 2030. President Biden aims for half of the US’s new car sales to be electric by 2030, investing $5 billion in charging infrastructure and revising EV tax credits. Nine US states plan to ban gas-powered car sales, while EU countries have agreed to stop selling gas-powered cars by 2035.

So which countries and US states are the best for electric vehicles? We’ve delved into the data to find out, taking into account purchase incentives, the proportion of EVs in each country, and the cost of one of the world’s most popular cars, the Tesla Model 3, as a proportion of average income too. We’ve also looked at charging station incentives, the cost to charge a Tesla Model 3, and the proportion of electric vehicles in each US state.

The best countries to own an EV

1. The United States EV score: 9.66

Taking the top spot, the US offers the world’s most popular EV, the Tesla Model 3 at the lowest price, just over $39,990. The US also has one of the most generous incentives for EV purchases, placing in the top five for the factor.

2. Luxembourg EV score: 7.33

Luxemburg takes the second place as one of the best countries to own an EV, scoring 7.93 in our index. The European country takes the top spot for both the highest proportion of EVs (3.26%) and the highest purchase incentives ($8,679.80).

3. Germany EV score: 7.67

Taking second place as one of the best countries to own an EV is Germany, scoring 7.67 in our index. The country takes the top spot thanks to it having the highest purchase incentives, with the German government offering motorists over $9,700 off the price of a new EV.

The countries with the best tax incentives to buy an EV

1. Germany $9,749.84

Germany has the most generous incentive for buying an EV, offering a rebate of just over $9,700 for EVs. On top of this, the country also has a reduced VAT rate when buying EVs and EVs are exempt from some vehicle taxes.

2. Luxembourg $8,679.80

Taking second place is Luxembourg, offering motorists more than $8,600 for their EV purchases. The country also charges the minimum tax rate for vehicles with very low emissions, which is excellent news for EV motorists.

3. Hungary $7,962.37

Offering almost $8,000 in subsidies for EV purchases is Hungary, taking it to third place. The government also will spend about 75 million Euro on building new high-capacity stations along the busiest roads in Hungary. 

The countries with the highest proportion of EVs

1. Norway 20.27%

Taking the top spot by a margin of 20% is the Scandinavian nation of Norway. The country has encouraged its citizens to buy EVs by taxing new petrol and diesel vehicles heavily and not taxing EVs at all, making them a much more viable option. The percentage of EV cars in Norway increased by 2 times from the previous report and the Scandinavian country aims to ban the sale of all new polluting vehicles by 2025.

2. Iceland 6.23%

In a distant second place is Iceland with over 18,000 of its 300,000 vehicles being electric or 6.23% of its fleet. Iceland is one of the world’s leading markets for EVs thanks to its cheap renewable electricity paired with high gas prices and a high rate of urbanisation. This makes its infrastructure ideal for EVs.

3. Sweden 4.18%

Up next is Sweden with 4.18% of its vehicles being fully battery-powered taking it to third place for the factor. Stockholm, the capital of Sweden, bans diesel- and gas-powered cars from driving downtown starting 2025, as it has one of the densest EV charging networks in the world.

The cheapest countries to buy an EV

1. United States 139.72% of average income

The United States is the cheapest country to buy a Tesla Model 3, the world’s most popular EV when it comes to the proportion of average income. It comes as no surprise that the US is one of the cheapest countries, as Teslas are manufactured in the US, meaning import duties and other tariffs aren’t added to its price.

2. Norway 150.83% of average income

Up next is Norway, with its citizens paying just over 1,5 times the average annual salary for a Tesla. EV motorists in Norway can expect to pay just over $36,000, or 150.83% of the average income in the country for a brand new Tesla.

3. Luxembourg 163.72% of average income

Luxembourg takes third place for EV price as a proportion of the average income, thanks to it having the highest average annual wage of over $28,000. A Tesla Model 3 costs just under $46,000 in the country, or 163.72% of the average citizen’s income.

The best US states to own an electric vehicle

1. Washington EV score: 8.30

Taking the top spot as the best state to own an EV is Washington. The Evergreen State ranks in the top 5 for its proportion of EVs, and the top 10 for both charging station incentives and the cost to charge a Tesla Model 3.

2. Oregon EV score: 7.48

Up next is Washington State’s neighbour to the south, Oregon with a score of 7.48. The Beaver State takes second place thanks to its high proportion of EVs, placing in the top 10 for the factor and its overall strong score on all other measured factors.

3. North Carolina EV score: 6.87

North Carolina has secured third place in the index, marking an impressive leap from its previous position at 9th in the previous year’s report. Notably, it stands among the top 10 for offering the most substantial purchase incentives and boasts one of the lowest costs for fully charging the world’s most sought-after electric vehicles.

The states with the highest charging station incentives

1. California and Indiana $2,500

As EVs are still a relatively new technology, the infrastructure needed to power them is way behind that of polluting vehicles, so it’s important that electricity companies offer incentives to speed up the process.

Sharing the top spot as the states with the highest incentives for installing a residential charging station are California and Indiana, both offering residents a rebate of $2,500 to install a charging station.

2. Connecticut, Wisconsin and Louisiana $1,000

Helping people install chargers in their homes across the nation is a key incentive in EV adoption, as charging at home during off-peak hours can unlock the full potential of electric vehicles for little more than the price of a fancy coffee.

Nobody knows this more than electricity providers in Connecticut, Wisconsin and Louisiana, both offering residents up to $1,000 in rebates to install charging stations in their homes.

The cheapest states to charge an EV

1. Wyoming $4.74

Wyoming tops the list as the cheapest location to fully charge a Tesla Model 3, the world’s most popular electric car. It costs residents just $4.74 to fill its 50 kWh battery, thanks to Wyoming having some of the cheapest electricity tariffs in the country.

2. North Dakota $4.84

Up next is the southern state of North Dakota, costing just $4.84 to fully charge a Tesla Model 3, making it the second cheapest. North Dakota boasts the nation’s lowest electricity prices, largely due to its diverse energy portfolio and pro-energy policies. With a strategic focus on innovation and investment, including significant contributions from the oil and gas industry, the state prioritizes affordability, reliability, and sustainability in its energy approach.

3. Idaho $4.89

Taking third place is Idaho, at only $4.89 to fully charge the world’s most popular EV. The Gem State has some of the cheapest electricity in the nation as the majority is generated through relatively inexpensive and renewable hydropower.

The states with the highest proportion of EVs

1. California 2.90%

California takes first place for its proportion of EVs, with more than 900,000 EVs registered in the state in 2022 giving it the highest proportion of 2.90%. This comes as no surprise as The Golden State accounts for almost half of the plug-in electric car sales in the country.

2. Hawaii 1.59%

Up next is The Aloha State, with 1.59% of its fleet being EVs. Plug-in vehicles are popular in Hawaii thanks to the short driving distances and generous policy incentives from the state government.

3. New Jersey 1.45%

New Jersey secures the third spot with electric vehicles (EVs) comprising 1.45% of total vehicles. The state aims to register 330,000 EVs by 2025, already reaching 87,030 in 2022. Governor-led initiatives plan to mandate all new car sales to be electric by 2035, with initial requirements starting in 2026 as part of progressive regulations.

Previous reports

2023 The Worldwide EV Report

Methodology

We wanted to find the best countries and US states for the costs and incentives involved in buying an electric vehicle by analyzing the following factors.

We then gave each country and US state a normalized score out of ten on each of the factors, before taking an average across each of these scores to reach our final overall score out of ten.

Global

The countries with the best tax incentives to buy an EV: the purchase incentives for buying an EV in each country, taken from The EAMA for European countries and list articles for other countries.

The countries with the highest proportion of EVs: The number of passenger cars in each country divided by the total number of battery electric vehicles, taken from the EAFO and list articles.

The cheapest countries to buy an EV: The price of a Tesla Model 3 in each country, taken from Tesla as a proportion of the average salary in each country taken from World Population Review.

The US

The states with the highest charging station incentives: The rebates offered by electricity companies in each state for private charging stations, according to Enel X way.

The cheapest states to charge an EV: The cost to fully charge a Tesla Model 3 with electricity prices in each state according to The EIA. The states with the highest proportion of EVs: The total number of vehicles in each state according to the Federal Highway Administration divided by the number of electric vehicles in each state according to The US Department of Energy.