Electric Vehicle Apocalypse
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The auto industry is beginning to crank out more electric vehicles (EVs), but there's one big problem: not enough buyers.
Why it matters: The growing mismatch between EV supply and demand is a sign that even though consumers are showing more interest in EVs, they're still wary about purchasing one because of price or charging concerns.
It's a "Field of Dreams" moment for automakers making big bets on electrification — they've built the cars, and now they're waiting for buyers to come, says Jonathan Gregory, senior manager of economic and industry insights at Cox Automotive.
EV sales which account for about 6.7% of the U.S. auto market so far this year, are expected to surpass 1 million units for the first time in 2023, Cox forecasts.
Tesla’s rapid expansion, plus new EVs from other brands, are fueling the interest — 33 new models are arriving this year, and more than 50 new or updated models are coming in 2024, Cox estimates.
Yes, but: Sales aren't keeping up with that increased output.
Details: The nationwide supply of EVs in stock has swelled nearly 350% this year, to more than 92,000 units.
That's a 92-day supply — roughly three months' worth of EVs, and nearly twice the industry average.
For comparison, dealers have a relatively low 54 days' worth of gasoline-powered vehicles in inventory as they rebound from pandemic-related supply chain interruptions.
In normal times, there's usually a 70-day supply. |
