“Electric cars are a solution looking for a problem! They aren’t going to stop something that largely doesn’t exist. But since the 1000s of pounds of metals that comprise the battery aren’t being recycled, EVs are creating their own problem.”
~ Daniel F. Baranowski @DFBHarvard, America First
There are many options in EVs to challenge Tesla now, but there is one problem. People aren’t buying them, and they’re gathering dust at dealerships. Forcing electric vehicles on Americans has created an ever-growing mismatch between supply and demand.
Auto dealers are sitting on way more electric cars than they are gas-powered ones right now, Insider reports. It’s twice as much.
Cox Automotive experts, which owns Axios, posted the news on the outlet. The swelling EV inventories are looking for buyers. They first shared the information during a recent midyear industry review for journalists and stakeholders.
Cox attributes the slow sales due to price and charging concerns.
Examples of bloated inventories:
- Genesis, the Korean luxury brand, sold only 18 of its nearly $82,000 Electrified G80 sedans in the 30 days leading up to June 29 and had 210 in stock nationwide — a 350-day supply, per Cox research.
- Other luxury models, like Audi’s Q4 e-tron and Q8 e-tron and the GMC Hummer EV SUV, also have bloated inventories well above 100 days. All come with hefty price tags that make them ineligible for federal tax credits.
- Imported models like the Kia EV6, Hyundai Ioniq 5, and Nissan Ariya are also stacking up — likely because they’re not eligible for tax credits either.
- Tesla’s price-cutting strategy could be taking a toll, too: The once-hot Ford Mustang Mach-E now has a 117-day supply. Ford says that’s the result of ramped-up production in anticipation of stronger third-quarter sales.
Ford’s electric Mustang Mach E is piling up inventories. Ford dealers are selling fewer Ford EVs than they were this time last year.
Tesla has a distinct advantage over everybody else in the EV market. They have a trusted brand and customer loyalty. They’re also status symbols. If you spend $40,000 and up, way up, for an electric vehicle, you might as well have the best.
Eventually, new charging stations will be built, and prices may come down, but we still don’t have the grid to support everyone on electrification. Also, we have those big trucks. Even if trucks are electrified, they will still be big and demanding. The grid would have to change markedly, but it isn’t happening.
And what about recycling those 1,000-pound batteries? The simple answer is we don’t recycle them, at least not much, and they’re building up too. Only 5% or less are recycled.