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If EVs are the future, drivers didn't get the memo.
People are buying EVs, just not at the hyper-pace most automakers were hoping would be here by now, The Wall Street Journal reported.
In the Market for a New Ride
Despite the upside of EVs -- they create fewer emissions and charging is less expensive than gas -- there are still a few obstacles hindering mass adoption. EV ranges typically run low, meaning you have to charge your battery more often than filling up a gas tank. And charging can be a hassle -- you either need a public charging station, which could take hours, or install a charging system in your home.
So it's not a stretch to see potential new EV drivers idling:
- US EV sales are up 51% this year through September but the rate has slowed year-over-year and cars are starting to pile up at dealerships, the WSJ reported. Ford and Toyota have toned down their EV sales forecast and found that many drivers are gravitating toward hybrids.
- "The curve isn't accelerating as quickly as I think a lot of people expected," Ford CFO John Lawler said at a conference last month. "We're seeing it flatten a bit."
I Can't Afford That: EVs might ultimately be cheaper, but that's a tougher sell in today's high inflation, high interest rate environment. Last year, the average price of an EV was around $60,000, and while that's fallen about $10,000, it's still more expensive than your typical combustion engine vehicle.
Car makers need to rethink how to move beyond the early adopter market. Tesla has already cut prices half a dozen times this year, and its Model 3 now costs roughly $40,000, less than the average car price. Hyundai, which doesn't qualify for US tax credits since its EVs are made outside the US, is throwing in free home chargers and discounted installations. Maybe a complimentary air freshener will convince them.
