EV Sales Will Collapse
Cox Automotive has a pessimistic view of the EV industry. Sales will increase for a short time as people rush to obtain federal tax credits. After September, they will crash.
“With government-backed incentives set to end in September and economic pressures mounting, the second half of the year will be a critical test of EV demand. Q3 will likely be a record, followed by a collapse in Q4, as the electric vehicle market adjusts to its new reality.” Used EVs, as Cox points out, are having a good year. People can pay $ 25,000 for a lightly used car that would have cost them $45,000 new two years ago.
Axios calls the year-end movement a collapse.
Tesla Has A Role
New data from iSeeCars shows that prices for used EVs, which are between one and five years old, dropped 5% in June compared to June of last year. Two Tesla models posted drops of 15% or more.
What is not quite clear is the extent to which the new car EV market needs Tesla. That comes down to how popular the brand is, notwithstanding anything Elon Musk has done. Tesla still has 45% of the US market. Other EV brands have not done well. Buyers may find them inferior to Teslas.
Regardless of which EVs are popular, none are popular enough to prevent the collapse.
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