The State of the US EV Market
The US electric vehicle market is growing, but the latest quarter has seen a rise in unsold EVs along with new price cuts. Despite the federal and state subsidies, boosting sales above the current 7% market share level seems more difficult than expected.
The US EV market has been growing, with sales increasing by more than 80% year over year. However, the latest quarter has shown rising inventories at some automakers’ dealerships.
Electric Vehicle Inventory
Major established automakers such as GM, Ford, Hyundai, and Toyota have more than 90 days’ worth of unsold EVs at their stores at current sales rates. Dealers have over 92,000 EVs in stock, three times the number of EVs on their lots a year ago. This indicates a pause in the growth of the EV market, but there is still hope for the future.
The current challenge facing the EV market is the price cuts resulting from the rise in inventories and the difficulty of increasing sales at the current market share. Tesla, in particular, has had to resort to new price cuts to keep up with competitors. However, this could be a short-term pause, as consumers are increasingly interested in electric vehicles due to their environmental benefits and lower operating costs.
Automakers are launching new models and revamping existing ones with improved battery range and performance, making them more appealing to customers. Ford’s F-150 Lightning and Mustang Mach-E electric SUVs have been well-received, with high customer demand. As more models become available, the EV market is expected to recover and continue to grow, driven by consumer demand.
In addition to consumer demand, the Biden administration’s push for EV adoption is expected to boost the market. President Biden has proposed a $174 billion investment in EVs, including funds for charging infrastructure, research and development, and incentives for consumers and manufacturers. This investment could create new jobs and drive economic growth while reducing greenhouse gas emissions.
The US EV market is growing, despite the current challenges of rising inventories and price cuts. The future of the EV market looks promising, with increased consumer demand and government support. As automakers continue to launch new and improved EV models, and charging infrastructure becomes more available, the market is expected to recover. The Biden administration’s push for EV adoption is also expected to drive growth and reduce greenhouse gas emissions. While the current pause may seem concerning, the long-term outlook for the US EV market is positive.