Demand for electric vehicles is crashing as people see this huge problem become clear

Photo By Rathaphon Nanthapreecha from Pexel

Environmental extremists and government officials have been trying to push Americans into electric vehicles (EVs) for years.

And when the price of gas shot through the roof during the Biden Administration, demand for EVs skyrocketed for a while.

But now the shine of EVs is starting to dull, and it looks like it’s happening just as fast as it started because people started seeing this major flaw.

EV production slows

When EVs were first developed for mass consumption, automakers set extremely bold forecasts and lofty goals for the future.

But now, it looks like the hype is waning as companies are beginning to focus on consumer choice and their bottom line rather than government intervention.

Companies like Ford Motor, General Motors, Volkswagen, Aston Martin, and Mercedes-Benz are just some examples of brands scaling back EV production.

Even Tesla’s Elon Musk, whose company is estimated to account for 55% of all US EV sales, says that there “may be a notably lower” rate of growth for Tesla this year.

According to Marin Gjaja, chief operating officer for Ford’s EV division, the demand in 2021 and 2022 was a “temporary market spike” and now, “It’s still growing but not nearly at the rate we thought it might have in ’21, ’22.”

Companies like Ford are increasing production of hybrid vehicles, which makes for a much easier transition for consumers who likely aren’t ready for fully electric vehicles.

VW of America CEO Pablo Di Si told CNBC that “the balanced approach is the best way.”

Some automakers are still promising all-electric lineups, including Volvo, which said it plans to do so by 2030, while GM says it plans to do the same, but by 2035.

Honda Motor set its all-EV target for much later, citing 2040 as the goal.

Meanwhile, companies are carefully monitoring things like consumer sentiment and EV charging infrastructure to help them decide on plans and goals moving forward.

Ford has significantly slowed down the production of its F-150 Lightning truck due to slumping sales. 

According to Gjaja, his company needs to “protect ourselves against going too far in one direction, because the market right now, as we’ve seen, is very uncertain.”

Porsche CEO Oliver Blume told attendees at an annual media event that the company is monitoring EV adoption and is currently “in a flexible position” to adapt.

“We have to keep tabs on it… although the ramp-up is slower than planned last year, we are always in a position to respond flexibly. [We will] have to see in 2026 and 2027,” he said.

Consumers are skeptical

Although Tesla has a significant share of the EV market, most average consumers remain skeptical of the vehicles.

As interest rates skyrocketed and raw material costs rose, EVs have become much more expensive when compared to gas-powered vehicles.

A lack of easy access to charging stations, problems with vehicles charging in cold weather, and “range anxiety” are also playing a role in consumer sentiment.

According to Cox Automotive’s 2024 forecast report, “The expectations for EV growth in the US market have shifted from ‘rosy to reality’ as sales increase, but customer acceptance of EVs isn’t keeping pace.”

Informed American will keep you up-to-date on any developments to this ongoing story.