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Nearly one in five cars sold worldwide in 2023 was electric, but sales in the U.S. are leveling off as issues like cost, range, charging capacity and a lack of charging stations keep Americans from getting behind the wheel of a new electric vehicle (EV). That’s according to a recent survey from the Energy Policy Institute at the University of Chicago (EPIC) and The Associated Press-NORC Center for Public Affairs Research.
On a positive note, six in 10 Americans cited saving money on gas and vehicle maintenance as reasons to purchase an EV, along with reducing their personal impact on climate change.
And given the option between a more expensive EV made in the U.S. and a less expensive electric vehicle made in China, the majority of Americans report they would purchase the American-made vehicle. This holds true if told that the American-made vehicle cost $500, $1,000, $2,000 or $5,000 more than the Chinese vehicle.
“Many Americans still aren't sold on going electric for their next car purchase,” CBS reports. “High prices and a lack of easy-to-find charging stations are major sticking points.” The survey results show that the Biden Administration’s election-year plan to raise EV sales is encountering resistance from American drivers.
“Only 13% of U.S. adults say they or someone in their household owns or leases a gas-hybrid car, and just 9% own or lease an electric vehicle,” CBS adds, noting that a new EPA rule requires that about 56% of all new vehicle sales be electric by 2032, along with at least 13% plug-in hybrids or other partially electric cars.
“Auto companies are investing billions in factories and battery technology in an effort to speed up the switch to EVs to cut pollution, fight climate change — and meet the deadline,” it says.
Reversing the Trend
Right now, some auto companies are reining in their EV plans. Fisker recently filed for bankruptcy protection, GM has backed away from its initial EV plans and Volkswagen recently canceled the U.S. release of its new EV sedan, Autoblog reports.
More recently, Ford recently walked back plans to develop a new SUV EV, adding to a “drumbeat of news from carmakers that have delayed or scrapped investments in EV models, factories and battery projects,” WSJ reports.
Vehicle production for Ford’s next-generation all-electric pickup truck plant in Tennessee was supposed to start in 2025, according to CNBC. The automaker has since canceled its plans for the three-row electric vehicle.
“This is really about us being nimble and listening to responses from our customers,” Ford CFO John Lawler said in a statement. “We’ve been out in the EV market here for over two years, and we’ve learned a lot, and what we’re understanding is that customers want more electrification choices.”
Cost Matters
In “Why Americans aren’t buying more EVs,” Ars Technica breaks down some of the key obstacles to EV ownership. For example, it says the price for a new EV averaged just less than $57,000 in May, compared with an average of a little more than $48,000 for a car or truck with a traditional engine.
The starting price for a Tesla Model Y was just less than $43,000 during the first quarter. The Ford F-150 Lightning, the electrified version of the best-selling pick-up truck in the U.S., was teased at $42,000 when it went on sale in May 2022 but now starts at $55,000—more than $11,000 above the petrol-powered F-150.
“Used EVs are cheaper, with a vehicle less than five years old costing about $34,000,” it says. “But they remain more expensive than used cars with traditional engines, which average about $32,100—and they make up just 2 to 3 percent of used vehicle sales.”
