Are Americans ready to embrace tiny 'cars'? These companies think so
Electric low-speed vehicles, or LSVs, are a step above a traditional golf cart but below a typical light-duty car or truck sold in the U.S.
In the U.S. automotive industry, there is a growing interest in small, affordable vehicles known as electric low-speed vehicles (LSVs). These vehicles are not cars but are essentially a step above traditional golf carts and below light-duty cars or trucks. Keith Simon, co-founder and CEO of Waev, which owns several LSV brands, has observed a significant increase in the popularity of these vehicles, citing the emergence of new players in the market.
President Donald Trump has advocated for the inclusion of LSVs on U.S. roadways, suggesting that American car companies should develop tiny cars. While small cars have historically struggled in the U.S., companies involved with LSVs believe they could represent a growth market for those seeking an affordable and easy-to-drive vehicle for short distances. These vehicles can be charged overnight using a traditional household outlet, unlike more expensive electric vehicles that require specialized chargers.
Despite limited data on the U.S. LSV market, it is considered part of the broader "micromobility" segment, which McKinsey & Co. estimates could nearly double globally by 2030. The market for U.S. consumers is dominated by companies such as Stellantis' Fiat, Waev, and startup Chip Motors, which offer electric street-legal LSVs starting at around $15,000, a fraction of the average cost of a new traditional car or truck.
LSVs are typically used for short distances, often in closed community settings such as retirement homes or condominium complexes.
The market for LSVs is loosely regulated compared to the light-duty vehicle market but must adhere to certain safety standards, including headlamps, turn signals, mirrors, and a windshield. They are not required to have airbags and can be driven on roadways with speed limits of up to 35 mph. Jameson Detweiler, CEO of Chip Motors, estimates that the market for street-legal LSVs is currently in the hundreds of thousands of units annually, with projections of growth as more companies enter the market.
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