Electric vehicle (EV) sales are plummeting, forcing manufacturers and sellers to take drastic measures to reduce their inventory of unsold cars. The Wall Street Journal reported that Hyundai Motor and Ford Motor, among others, are offering cash-back rewards of up to $7,500 on select EVs, while Ford has also slashed the price of its Mustang Mach-E SUV. In addition to these price cuts, some companies are providing generous leasing options, including cheaper monthly installments and shorter lease lengths.
— The Gateway Pundit (@gatewaypundit) November 7, 2023
Even Tesla, a major player in the EV industry, has had to lower prices across its lineup, with starting prices on certain models down by a third. Fisker, an electric vehicle startup, recently announced a $7,500 price reduction on its newly launched Ocean Extreme SUV due to fierce competition in the market.
The decline in EV sales can be attributed to people’s unwillingness to pay premium prices for these vehicles, according to industry experts. Data from automotive website Edmunds revealed that, in September, customers received an average discount of $2,000 on EVs and paid $930 less than the list price. This is a significant change from the previous year when customers typically paid an additional $1,500 above the asking price.
While the price cuts may temporarily boost demand for EVs, there are concerns about their long-term sustainability. Jeff Dyke, president of Sonic Automotive, stated that the current pricing strategy is not viable forever and that manufacturers need to find ways to make EVs more affordable.
Moreover, a recent report from the Texas Public Policy Foundation highlighted the true cost of fueling an EV without subsidies. The study revealed that, without generous support, the cost of fueling an EV is equivalent to $17.33 per gallon of gasoline. The report emphasized that the lower operating costs of EVs compared to traditional gasoline cars are only possible because of various subsidies and regulatory credits.
In summary, the decline in demand for EVs has led to significant price cuts across the industry. While these measures may temporarily increase sales, there are concerns about the long-term sustainability of the EV market. The true cost of fueling an EV without subsidies is much higher than previously thought, highlighting the reliance on government support for the economic viability of electric vehicles.