With the first month of sales reports coming in post-tax-credit, U.S. EV sales have taken an absolute drubbing. The highly publicized end of EV subsidies had the precise effect analysts predicted, encouraging sales in the final months of its availability (and likely leaving demand depressed for months to come). Even in cases where brands stepped in with their own incentives, the sales have essentially vanished, and as automakers flex away from electric models to ICE vehicles in the coming, we expect the segment to stay relatively cool.
Bear in mind that not all automakers report their sales figures monthly anymore, so we won’t have a clearer picture of what’s happening industry-wide until January (after Q4/full-year sales are announced). Here’s a preliminary look:
Short version: It’s a bloodbath. It likely won’t stay this ugly long-term, but we’re not expecting any big surprises from the segment any time soon. A lot of pent-up demand was just satisfied by EVs being discounted while the credit was still good, so even in cases where prices haven’t changed all that much, it stands to reason that the automakers were spending more to move metal while the feds were still picking up the tab for the discounts.
The end result may not have changed all that much for the customer, but a whole lot of potential profit evaporated overnight, and automakers would rather focus on selling models that won’t lose them money outright.
We’ll keep our eyes peeled for any other big news on the EV sales front; in the meantime, if you’re hunting for a leftover, your favorite brand might be in the mood to deal just to get it off the lot. Can’t hurt to try.
Got a news tip? Let us know at tips@thedrive.com!
Byron is an editor at The Drive with a keen eye for infrastructure, sales and regulatory stories.