EV Sales To Collapse As Tax Credit Stops
One of the primary reasons people were willing to move from gas-powered cars to EVs was a $7,500 tax credit the federal government gave. The difference between an average EV price and that of a gas-powered car has been about $10,000. The credit leveled the playing field.
The credit expired yesterday, and EV sales are expected to plunge. Most estimates are that 8% of all new car sales in the US were EVs. Two percent of the cars on American roads were EVs, which is a very small percentage. iSeeCars expects new EV sales as a percentage of the total in the US will fall to 4% and stay there for two years.
The move will challenge Tesla, but not as much as other car companies. Although it has struggled with sales, it still maintains a 47% market share as of the second quarter of 2023. The companies that will suffer the most are those in the gas-powered business that are trying to transition to EVs. As a group, these companies have invested tens of billions of dollars and will now see their unit sales plunge. At least their gas-powered businesses are healthy.Â
Range And Charging Stations
The tax credit also offset the issues of range and charging stations for many buyers. People who considered EVs were concerned about their 300-mile range and the limited availability of public charging stations.
Two years ago, large car companies and the Biden Administration forecasted that EV sales would account for 50% of total new car sales in the US by 2030.
Not a chance.
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