Aside from a home, most people’s biggest purchase is their car. The government really wants you to buy an EV, and for a while a lot of people responded…but that’s no longer the case. This has prompted many automakers to cut back their production estimates of EVs. Does that mean the EV phase is dead?
Not quite. But it’s not just a simple yes or no question.
Here are Five Fast Facts on EV sales moving forward:
- 🤦 Stumbling But Not Dead - The bottom line is sales. In the first half of 2024, sales rose 7.3% over the same period in 2023. While that’s not remotely close to the 47% increase from 2022, it’s still an increase, so there is still at least some demand there…though a recent survey suggests only 11% of new car buyers are considering EVs. An unrelated survey shows 11% of new car buyers feel they have too much money.
- 😱 Sticker Shock - If you’re comparing an EV to a gas powered car, the sticker price may shock you. As of January, the average price of a new EV was 17% higher ($55k) than the average price of a new gas vehicle ($47k), even after government helps out.
- 🚫 Too Much Risk - Most buyers feel there’s too much risk in buying an EV. The high prices are a huge obstacle, but so is switching to an entirely new technology (especially when it costs more), and there are still legit concerns about batteries, charging infrastructure, and range (especially in the cold).
- 🇨🇳 Export Dangers - As the EV industry waffles in the US and Europe, China is pushing ahead. Almost half of all new cars sold in China are now EVs, and almost 80% of the top-selling EV brands in the world are Chinese. Experts warn that falling too far behind will allow China to corner the EV market.
- 👀 Hidden Impact - Another downstream impact is to auto suppliers. These are the smaller companies that produce all of the little stuff to the big boys like Ford and GM, but they don’t get the politically motivated bailouts! They employ almost a million Americans, so what happens with them impacts a LOT of families across the nation! And when the big boys change direction rapidly, they often don’t have the money or infrastructure to keep up. Here’s hoping things settle into a single direction, for everyone’s sake!
🔥Bottom line: It’s clear EVs aren’t going away, but they’re not exactly going like gangbusters, right now, either. It’s hard to predict accurately where it’s all going, but given how many people rely on the auto industry for their Paychecks it’s certainly something to keep an eye on!
What do you think of EVs?
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