RALEIGH, N.C. (WNCN) — Despite price cuts, sales of electric vehicles are slowing after reaching new highs in 2022.
Unlike gas stations which can be found in small towns and big cities, electric charging stations have to be sought out.
With the national charging station network still in its infancy, and taking a long trip in a fully electric vehicle requires a lot of planning those are some reasons why analysts say sales of electric vehicles are slowing.
Right now, automakers are churning out more EVs than there is demand for.
“They may have overproduced a little bit, expecting demand to be greater than what it is,” said Brian Moody, the executive editor at Auto Trader.
Fully electric vehicles are about $ 10 to $18,000 more expensive than comparable gas-fueled models, so automakers are slashing prices to attract more buyers.
“Tesla has been leading that, but when they lower their prices, others lower theirs,” said Moody.
For some automakers, that means they are losing money on every electric car they sell.
The EPA is proposing that 67 percent of new car sales in 2032 be electric but some analysts say that goal may be too ambitious.
Some automakers who planned on converting many models to electric ones in the coming years are having second thoughts.
“Ford has recently said they are going to pump the brakes on their electric car program,” said Moody.
GM is delaying the implementation of several new electric models and says it won’t meet its goal of producing a half million EVs next year.
There’s more of a push for hybrids which use a combination of gas and electricity and are gaining in appeal.
“More people want features you get from an electric car, the plugs, the lighting, that kind of stuff, but they’d rather have it in hybrid form,” said Moody. “I would look for more hybrid and more plug-in hybrids going forward.”
In addition to offering good fuel efficiency with mileage ranging from 50 to 70 miles a gallon, hybrids also tend to be a lot cheaper than fully electric vehicles.
Analysts say the next year will be challenging for electric vehicle sales until improvements in EV technology begin making their way into the industry.