As Tesla goes, so goes the U.S. electric vehicle (EV) market.

Elon Musk’s ownership of his reputational scores aside, he cited the main reasons for Tesla’s first-quarter sales decline since COVID-19 impacted Q2 2020 as high-interest rates and production issues stemming from shipping delays in the Red Sea. However, a “decreased consumer willingness to deal with the logistical challenges associated with EV ownership,” as mentioned by car shopping app CoPilot, might be closer to the truth than Mr. Musk would care to admit.

As with Tesla, Q1 of 2024 represented the first quarterly decline in overall US EV sales since Q2 2020, and it appears that EV adoption may have officially reached the dreaded chasm described by author Geoffrey Moore in his book Crossing the Chasm when discontinuous innovations stall once Early Adopters have reached a certain level of uptake.

Regaining Momentum

As a result of a slowdown in sales, dealers had a massive 114-day supply of EVs as of mid-March 2024, according to Cox Automotive, compared to a 76-day supply as the industry average.

So how does an entire category of vehicles, a category that requires a significant change in consumer behavior no less, regain momentum after a (hopefully) brief slowdown? By adjusting its messaging strategy from one of exclusivity to one of education, while retaining the idea that electrification is an exciting transformation for a country that has long been a world leader in innovation.

Here are a few ways that EV marketers can prepare for the incoming wave of adoption from the “Early Majority” consumers:

Audience & Targeting

From an audience perspective, consider focusing on multicultural audiences, particularly Black and Hispanic consumers. A 2021 study from the Fuels Institute (now known as the Transportation Energy Institute) found that 87% of EV owners were White and 75% were male. However, as Consumer Reports detailed in a 2022 survey, while 33% of white respondents would “definitely or seriously consider” purchasing an EV for their next vehicle, that figure rises to 38% for Black respondents and 43% for Hispanics.

Thus far, adoption rates are low for multicultural audiences, but that’s certainly not for a lack of interest. Speaking to multicultural audiences directly is a good first step toward ensuring the messaging focused on Early Majority consumers is a true representation of the future of EV adoption in the US.

Media Channels

Video has been proven to be the most effective way for auto marketers to reach and engage with shoppers. According to Google, over 70% of shoppers say online video has helped them learn more about an auto product they intend to buy, while Cox Automotive reports that 52% of car shoppers use multiple devices to shop for new vehicles.

Household targeting leveraging video ads across multiple connected devices is one way to ensure broad yet highly targeted reach. This approach uses Connected TV (CTV) as the initial touchpoint to generate awareness and spark conversation, and follows up with subsequent messaging across individual desktop and mobile devices within the same household to encourage deeper engagement.

Car buying is a household decision with multiple inputs from family members, friends or roommates, so utilizing a connected video-driven approach allows each member of the household to feel included in the process.

Creative Messaging

At the core of resistance to EV adoption lies consumer objection to price, concerns about charging infrastructure and range anxiety. The following creative messaging should be considered to directly address those concerns with helpful information, delivered via video.

• 46% of U.S. adults have heard nothing at all about EV incentives, according to Consumer Reports. Federal and state-level incentives should be front and center for any EV marketing, as they represent a prime opportunity to address pricing concerns. In addition, with the overabundance of supply in the EV space, there are massive incentives available to consumers in the form of cash rebates and special leasing offers, which again directly address the common perception that EVs are too expensive for most Americans.
• In a recent McKinsey survey, 42% of respondents who do not yet own EVs stated that they will be unable to charge at home. Fortunately, public charging infrastructure availability and compatibility will improve now that Tesla has begun opening up their charging network to other brands. EV marketers can add map features within video ad creative to showcase local public charging infrastructure – this is a great way to expose prospective EV owners to the abundance of available options, which may come as a pleasant surprise.
• According to the Department of Transportation, the average American drives 37 miles per day, which would mean an EV with 300 miles of range would get them from point A to point B for more than a week. Understanding consumer driving habits and reminding people that long-distance drives of 300+ miles aren’t typical might be a good strategy to ease the concerns of range anxiety, in addition to featuring plug-in and standard hybrid as “bridge” vehicles to full EV adoption.
• Finally, with the increase in supply of EVs, retail-focused messaging showcasing all available local inventory within a video unit is a great way to connect interest to intent, especially given the aforementioned tax rebates and incentives available to EV shoppers currently.

Electric vehicle marketing should be equal parts excitement and education as we enter a new phase of adoption aimed at a more practical yet still forward-thinking Early Majority consumer. A digital-first strategy focused on video is a proven way to provide shoppers with the opportunity to learn, engage, and imagine EV ownership on their terms.