Posted on 07/11/2023 11:36:26 AM PDT by Red Badger
Unsold electric cars continue to pile up on dealer lots amid the auto industry’s apparent misjudgment of buyers’ demands while attempting to compete with Tesla.
Most notably, luxury brands are struggling with high inventories of EVs that nobody wants to purchase.
With the increasing discrepancy between electric car supply and demand signals, there is a big looming public concern over buying an EV due to charging concerns and the hefty price tag.
As Axios reported, senior manager of economic and industry insights at Cox Automotive, Jonathan Gregory, linked the situation to the 1989 film Field of Dreams, which coined the phrase, “If you build it, he will come.”
Gregory said the car industry has now built its electric vehicles, but they are just waiting for the customers.
According to a survey by Cox Automotive, 51 percent of consumers are now considering either a new or used EV, up from 38 percent in 2021.
But despite the slight increase in interest, the sales are not matching the increased output of EVs, leading to unsold electric cars piling up in dealer lots.
The nationwide supply of EVs in stock has ballooned to almost 350 percent in 2023, more than 92,000 units – which translates into a 92-day supply.
The data mentioned above does not include Tesla, which sells its EVs to customers directly.
Dealers have a low 54 days’ worth of gasoline-powered vehicles in inventory when; normally, there is a 70-day supply.
Meanwhile, luxury brands are struggling.
According to Cox Automotive’s research, the Korean luxury brand Genesis sold just 18 of its nearly $82,000 G80 EVs in the 30 days leading up to June 29 and had 210 in stock nationwide – a 350-day supply.
Other luxury brands, including GMC Hummer EV SUV, Audi’s Q4 e-tron, and Q8 e-tron, have extensive inventories well above 100 days.
To make things worse, aside from the price tag, these vehicles are typically not eligible for federal tax credits.
Then, of course, there is an effect on jobs.
The Daily Fetched reported last year that Ford laid off 3,000 workers to save money while it ‘transitions’ to electric vehicles.
“The workforce reduction mostly targets employees in the U.S., Canada and India. About 2,000 of the targeted cuts will be salaried jobs at the Dearborn, Mich., automaker. The remaining 1,000 employees are working in contract positions with outside agencies, the company said at the time.
So, how long before we see Biden start the talk about a government bailout of the EV industry.
I guess the wave of the future has crashed on the beach. 😏
In a slowing economy, $82K virtue-signaling will be the first thing people stop spending on.
just wait til they ban gas cars
that will help the ev sales
Will all the unsold EVs end up at a charge off?
Perhaps the car of the future has run out of gas
I didn't either, and went to a rental care agency with gas-powered cars.
I don’t want anything that has yet to work the bugs out. The major bug ultimately is the USA electric grid.
ISWYDT!.....................
Duh.
.
BOMBS yet to be dropped.
1.) Spike in cost of Electricity as more use it.
2). Mileage Tax to get your money
3). Toxic Material disposal FEE upon Trade-in or sale
Filled up my car today, 18 gallons, 2 minutes, 350 miles, yea it’s a luxury car not very fuel efficient but I can blast th AC and have no charging worries. Glad to pay extra for the peace of mind.
.
What happens when there’s more demand at the charging pumps?
Wait times. Rolling blackouts
A significant percentage sold use their cars on weekends and for leisure. When people have to get to work and back and get to the Beach on Friday, it’s going to be something else entirely.
Good news. The consumer is voting “NO” to electric vehicles. The marketplace is working despite government efforts to shift demand.
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