Despite a record year for new electric vehicle market share and sales in the United States, EV growth is beginning to slow. It must catch up to the auto industry’s lofty ambitions to transition away from combustion engines.
The United States has reached a critical juncture in its electrification efforts: According to Motorintelligence.com, over 1 million new EVs have been sold in the United States this year. According to experts, this figure needs to rise quickly to address climate change because transport emits significant greenhouse gases.
Petrol is now around $3 per gallon nationwide, and the average transaction price for an EV, without any incentives, is just under $52,000. Many tech-savvy early adopters have already purchased electric vehicles, and the market has shifted to more price-conscious mainstream buyers.
Other factors are undermining today’s positive momentum. Until recently, there were only a few EV models to choose from. The location, cost, and convenience of charging these cars and vehicle range remain concerns. As a result, by June 2023, the sales pace had slowed to 50% year on year and dropped to 35% year on year last month.
Ford recently announced plans to postpone the construction of one new EV battery plant, reduce the size of another, and postpone $12 billion in future electric vehicle spending. GM has also delayed the retooling of an EV plant, and Volkswagen has postponed plans in Europe.