For pretty much about every other type of vehicle there’s a lack of vehicles. Inventory is tight. This should probably start getting better within 4-6 months. EVs?
EVs are running out of customers — and some dealers don’t want them anymore
More electric vehicles are being pumped out of car factories than ever before — but some dealers don’t want them.
Electric-car inventory has been piling up on dealership lots this year as companies up their EV production, leading some dealers to say enough is enough. Some are telling automakers they don’t want any more until they can sell what’s sitting, several dealers told Insider.
“We have turned away EV inventory,” said Scott Kunes, the chief operating officer of Kunes Auto and RV Group, which sells Detroit brands as well as Nissan and Mitsubishi in the Midwest. “We need to ensure that we have a good turn on it.”
Automakers are “asking us to make a large investment,” Kunes added, “and we’re just wanting to see some return on that investment.”
There are only so many people who are willing to purchase an EV, and only so many people who can afford to do so. Further, there are many who would purchase one, but, they are too inconvenient for their lives.
Plug-in-vehicle availability is increasing rapidly, a sign the EV-adoption growth curve is about to hit a serious slowdown. A switch from enthusiastic and wealthy early adopters to more apprehensive and budget-minded car shoppers is throwing the electric-car transition for a loop, forcing car companies to change their outlooks and pull back on ambitious EV production goals.
“It’s not just that these vehicles are expensive — which they are. We’re talking about a much more nuanced lifestyle change,” said Sam Fiorani, the vice president of global vehicle forecasting at AutoForecast Solutions. He pointed to differences in the EV ownership experience, including charging and range anxiety, as stoppers for many buyers.
“It’s hard for the average customer to make that leap while spending an extra $10,000,” Fiorani said.
The majority of EV buyers make between $150K-$300K a year with a smattering of very rich folks who have them as a second vehicle. The average cost of an EV is $64K. If you can buy a Corolla or Civic, nicely appointed, for under $30k, or a Camry or Accord for under $35K, why would you go for an EV about the same size for so much more?
Car shoppers can find plenty of electric options on dealership lots — while there was about 54 days’ supply of vehicle inventory overall at dealerships earlier this summer, EV inventory was nearly double that.
54 days? Where? I can think of a few individual models which had an abundance, but, that has stopped. Most are gone in 6 days to 2 weeks.
But the savviest executives will heed this first warning from dealers about where the demand pendulum is swinging, Karl Brauer, an automotive analyst for iSeeCars, previously told Insider.
“Dealers know in real time with real-time feedback what the market is doing,” he said. “They have always acted as the first warning lights on the dash for the automotive industry.”
They got the early adopters, and will continue to sell some, around 3-6% of sales, but, when talking the non-luxury lines (Honda, Toyota, VW, Ford, Kia, etc), most aren’t interested. Few ask. Most who do ask aren’t interested in purchasing, just more of wondering.
(Watts Up With That?) But that’s still better than the news reported in March that insurance companies are having to write off EVs with just a few miles – leading to higher premiums – because of the many EVs for which there is no way to repair or assess even slightly damaged battery packs after accidents. EV battery packs are ending up in junkyards in multiple countries.
According to the Agent Support Network of America, the intense impact of a crash can be much more devastating to EVs, increasing the likelihood of a totaled versus repairable car. EVs, according to Consumer Reports, may not withstand an accident as well as traditional gasoline-powered vehicles. EV batteries are vulnerable to damage, and with any indication of a compromised battery, insurance companies will likely declare an EV crash a total loss.
So, add insurance costs to the picture, where people will pay around 25% more at this time, on top of already higher premiums post-COVID. And as more are on the road that cost could go up.
EV technology is increasing rapidly as range goes up markedly every year
I think many are willing to wait and see what will be available next year or in 2 years.
However Tesla Mod Y has been selling very well last year over 1 million cars
Tesla is very profitable and quite happy to sell in the luxury premium car level.
When they finally do enter the cheap car market I expect them to do quite well.
In the 1dt Q of this year the Mod Y was THE best selling car model in the world. I think they fell to #2 for the year. All Tesla’s have 5 star safety ratings.
Yet somehow, some way, unless you have since changed your mind, you once said that no, you weren’t going to buy an electric car . . . .
We all thank you for your continued support of our boy Elon. You’ve kept him in his multibillion dollar state of affairs and build his company greatly again thank you. But the truth of the matter is that without government subsidies without the force of government and government institutions behind it EV’s would fail dismally. Even you’re highly touted Tesla.
A few months ago my father bought a $200,000 plus Mercedes EV SUV. At first he loved it. Now it’s a love hate relationship. Soon I imagine my father will be trying to get rid of it. Same reason as everybody else he always feels worried when he gets in the thing that it’s gonna die before he gets to his destination.
I drove it and it was a fantastic luxurious vehicle except for one thing it doesn’t feel like a damn car. it feels like you’re driving a golf cart. Plus I wouldn’t pay$200,000 plus for any vehicle that doesn’t have a RR on the front of it. Of course I’m used to driving a Corvette because I actually enjoy driving. If you enjoy driving an electrical vehicle is not for you. EV’s are for women and fags.
Corvettes are for insecure boys. For all the noisy vroom! vroom! of a Corvette, a Tesla trashes it in a quarter. Shift your own gears (manny tranny) or have an auto tranny?
If you want a fast car you need a 1900 hp Pininfarina Battista EV at $2 million a copy, or the 1874 hp Lamborghini Huracan STO for only $500K.
If you only want fast gas go with the 1025 hp Dodge Challenger SRT Demon 170 for $100K.
I have an old corvette and have driven it from Dallas to Phoenix in one day, in the heat, in 16 hours strait. Get any electric car you want and let’s drive them from Irving to Mesa and I’ll buy the winner a cactus margarita. Its about 1000 miles
And all Tesla’s offer more power
EV’s simply aren’t ready for prime time and won’t be for years to come.
Batteries are probably the #1 issue. Range and a shortage of fast charging stations in many areas are additional battery related concerns. Lack of independent repair shops, trained techs, and questionable parts availability exacerbate the repair concerns. The list goes on.
I have stated before that I am invested in several EV manufacturers and hope that they do well. However, I don’t own an EV and don’t plan on buying one. Also, I think EV’s will remain an urban / suburban vehicle type for some time due to the issues and concerns mentioned.
EV’s will be a niche market for the near future. Too bad, Brandon.
Naturally, Uncle Sam is throwing money to private businesses, to add EV fast charging stations.
Think about it! The federal government is giving money to private companies to build more charging stations, off of which private companies will make a profit. Taxing the working class to subsidize Wawa.
Of course for the most popular EVs the ones made by Tesla there typically is a 1 or 2 month wait time to buy. Tesla can’t build them fast enough.
The least popular EVs are the ones . Not selling
Our distinguished host quoted:
For the same sized vehicles, electric cars weigh more, due to the heavy batteries. Force = change in momentum, and momentum = mass times velocity. If two vehicles traveling at the same speed come to a sudden stop, in an accident, the force will be greater in the vehicle with the greater mass. Same crash, greater damage.
[…] Pirates Cove- EVS selling like electric blankets in August […]
[…] EV Sellers Running Out Of Buyers […]
Governments gave/give money to private companies to build more roads and bridges.
Taxing the working class to subsize GM, Ford, Toyota, Honda, Subaru…
The federal government works to transfer wealth from the working class up, up, up to the wealthy class. The rich are getting richer at a much greater rate than the working class. this is not accidental, but intentional. Thanks Congress.
Subsidizing companies to build roads and bridges to be used by the citizenry is not the same as giving money to subsidize GM Ford Toyota et cetera. Infrastructure is used by everybody those car companies you named sell their products and make a profit. If you wanna compare roads and bridges Bing though then compare that to electric cars being purchased by the government.
I was not aware the GM Ford Toyota Honda Subaru at cetera are being subsidized by the government. I can’t imagine why since their existing businesses and shouldn’t need subsidies. Unless this is another get rich quick scheme by the Democrats to launder money for their members.
You have spent the last five years complaining about the rich getting richer and the poor getting poorer and the working class getting screwed. And during that entire five years the people in power were almost all Democrats. Might be time for you to reassess your party loyalties buddy. Your party has been in power it controls almost all the power centers in America including industry and finance and the rich keep getting richer and the poor keep getting poorer. So who’s freaking fault is that?
The charging stations will be used by the citizenry as well. How do you think the horse drawn crowd felt when the gubmint started building higher tech roads for the horseless carriages?
Anyway, almost everything we do in the US subsidizes the auto industry. We have 8 lane highways from the far suburbs into the city where folks work. Would they live so far away if they had to struggle on a 2 lane road? Maybe trains like we see in the eastern corridors would be used instead of so many cars. Only recently have we become aware of the impact of gas cars/trucks on global warming. Are the car companies going to pay to build sea walls in Boston and Miami or are “the people” going to pay?
Without the gubmint Chrysler would have gone out of business, same with GM.
Yes, the rich are getting richer and the poor, poorer and the working class screwed.
We understand you blame this on the Dems – what else would you do? Do you agree with Bernie Sanders and me that we need to raise taxes on the wealthy and corporations and reduce taxes on the working class? Conservative economist Milton Freidman advocated a “negative income tax” which involved the government paying the working poor to bring their income up to an established minimum! But since, it’s been a conservative maxim that the rich are too burdened by taxes!!! Every Repub from Reagan on has cut taxes on the rich and corporations.
I worry about all the money and huge infrastructure that Tesla has built and is building. Their huge gigantic buildings producing tens of thousands of cars a day.
This will very soon over-saturate the market. While this should drive the price down (SHOULD), it will also lead to the main outcome of an over-saturated market. A market crash. This will seriously harm Tesla and could impact the funding source of SpaceX.
And yeah… only the rich drive electric cars and esp trucks. Ford has said that their F150 lightning is losing billions for them.