Why EV Sales Are Falling

The great EV winnowing that I have been warning about for a while is coming to the EV industry.
Many companies are going to go out of business or be sold to rivals for pennies on the dollar.

This is not a prediction of doom and gloom for EV’s or a pronouncement that the EV revolution is dead.

More people than ever choosing electric vehicles in 2023, according to vehicle sales data from Cox Automotive.

Mainstream media and EV haters however would have you believe that demand has dropped off the cliff for any number of reasons and on the most recent Tesla earnings call Elon Musk blamed everything on interest rates. EV demand really hasn’t dropped in absolute terms.

But, Mr. Musk is partially correct.

Yes, higher interest rates have increased the cost of everything that Americans purchase on credit but an EV is not a house and the monthly payments are a lot less sensitive to interest rate changes due to the lower purchase price of a car and the length of the loan term.

Higher interest rates are only part of the reason.

EV demand is simply changing and the electric vehicle market is entering into a transition period.


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