Hawaii Electric Car Explosion Driven by Tesla Popularity and State Incentives

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Hawaii has recently seen an explosion in the popularity of electric vehicles, and it now has the second-highest electric vehicle adoption rate per capita out of US states. A new report by the University of Hawaii has pinned the development on the combination of state incentives and the popularity of the Tesla.

The University of Hawaii’s Economic Research Organization analyzed how both state policies and social networks influenced purchases of electric vehicles. Hawaii has used state incentives to encourage more Hawaiians to use electric cars, and the various policies have apparently been successful in encouraging adoption, the report finds. However, the popularity of Tesla’s vehicles has also played a part in the increasing popularity of electric vehicles.

The report also finds that the policies implemented by the Hawaii state government boost sales by conferring benefits like reduced registration fees, excluding drivers from HOV lane requirements and reserved parking spaces. Currently, Tesla made vehicles make up around 13 percent of all registered electric cars on Maui, Oahu, and Hawaii Island. A purchase incentive of $1,000 dollars also led to a 15% increase in sales of electric cars, according to the report.

It should be noted that, according to the Electric Vehicle Transportation Center, despite the current expansion in the electric vehicle market, electric cars as a whole only make up 0.4% of all vehicles on the road.