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The Tesla Model 3 has consistently ranked as the most American vehicle in recent years according to the Cars.com American Made Index. This shift indicates that electric vehicles are overtaking traditional gasoline powered pickup trucks and SUVs in terms of domestic impact. Rankings are determined by several factors including final assembly location, the percentage of parts sourced from the United States and Canada, and the size of the local manufacturing workforce. Tesla currently holds the top four spots on the index with its Model 3, Model Y, Model S, and Model X, largely due to significant investments in domestic production facilities like Giga Texas.

For several years, the “most American” vehicle has been an electric car, a title traditionally held by gasoline-powered pickup trucks and SUVs. This shift is highlighted by the Cars.com American-Made Index, which has consistently ranked electric vehicle (EV) maker Tesla at the top. 

CheapInsurance.com analyzed the emergence of electric cars as the “most American” vehicles on the market using data from Tesla’s earnings reports and the Cars.com index. Cars.com’s index considers several factors related to manufacturers’ sourcing of materials, labor, and financial investments in U.S.-based facilities.

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The index determines its rankings based on several key factors:

  • Final Assembly Location: Where the vehicle is put together.
  • Percentage of U.S. and Canadian Parts: The value of domestic components.
  • Country of Origin for Engines and Transmissions: The source of these critical components.
  • U.S. Manufacturing Workforce: The number of employees in the United States relative to the automaker’s total footprint.
Tesla Overtakes American Made Index

How EVs, and Tesla, Have Risen to the Top

Tesla’s rise to the top of the American-Made Index is a testament to its commitment to domestic manufacturing. This is largely due to the opening of its massive Gigafactory in Austin, Texas. This factory, known as Giga Texas, not only assembles the Model Y but also produces the batteries that power the vehicles. The company’s expansion in the U.S., which includes adding thousands of American workers to its payroll, has significantly boosted its score in the Cars.com index.

For the 2025 model year, the Cars.com American-Made Index shows a strong showing for EVs, with the Tesla Model 3, Model Y, Model S, and Model X securing the top four spots. This marks a continued trend of EVs dominating the index, a trend that was not present just a few years ago.

Tesla Increases Net Property Plant Equip

The “Battery Belt” and Investments in the South

The push for domestic EV production isn’t limited to Tesla. In recent years, there has been a significant surge in investments in electric vehicle and battery manufacturing across the United States, particularly in the Southern states. This region has earned the nickname “the Battery Belt” due to the concentration of new EV-related factories.

Tesla Major Factories In the US

Manufacturers are building new plants in states like Texas, Georgia, North Carolina, and Tennessee, which have offered attractive incentives such as tax breaks and lower labor costs. This strategic shift in manufacturing is a response to both consumer demand and government policies, such as the Inflation Reduction Act, which provides incentives for vehicles with domestically sourced components and assembly.

The investment in the U.S. EV supply chain is massive. According to the International Energy Agency, an estimated $52 billion in North American-based investments has been announced by manufacturers of EV batteries and vehicles. This influx of capital and jobs is transforming the automotive landscape and solidifying the U.S.’s position in the global EV market.

Frequently Asked Questions About Electric Vehicles and American Manufacturing

How can an electric vehicle be considered the “most American” vehicle?

A vehicle is often considered “most American” based on where it is assembled, where its parts are sourced, and how much of its workforce is based in the United States. Many electric vehicles score highly because they are built in U.S. factories, use domestically produced components, and support American manufacturing jobs.

Why have electric vehicles led American-made rankings in recent years?

Automakers have invested heavily in U.S.-based EV production to meet demand, qualify for incentives, and shorten supply chains. As a result, several electric models now have higher percentages of U.S. and Canadian parts and more domestic assembly than many gas-powered vehicles.

Does driving an electric vehicle affect insurance costs?

Electric vehicles can cost more to insure due to higher purchase prices and expensive battery repairs. However, insurance rates also depend on safety ratings, driver history, and location. Some EVs with advanced safety features and lower accident rates may be competitively priced to insure despite higher repair costs.

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Published

September 10, 2025

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Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.