The electric car conundrum: more cars, more hype, or more hope?

Alright, here's a riddle for you. Why would electric vehicles stack up in dealers' backyards even when the buzz says everyone wants them? Contradiction? Maybe. Mystery? Let’s look a little bit closer.

We all remember the days of hopping into our traditional gasoline-powered vehicles, right? But since 2020 the game began slowly changing, with 2023 promised to be the year where the balance would shift. At least it seemed to be going that way. Unfortunately, recently, the data depicted that EVs lounged around at dealerships a tad bit longer than their gas-guzzling cousins. And by a tad, we mean they were catching rays for over 100 days. That sounds like a bummer for EVs, right? Well, it's not as black and white as it might appear.

This year's statistics pulled a fast one on us. While 8.6% of vehicles rolling off the lot were EVs, they made up only 6.7% of available inventory. So, for those math wizards out there, there's a small but significant discrepancy.

And before you jump to conclusions (because we all love a good leap), experts are warning us to hold our horses. According to Tyson Jominy, VP of all things numbers at JD Power, rumors of diminishing EV demands are as true as a pig's ability to fly. He points out that this anomaly in data isn't just an "EV thing". The pandemic's lingering side effects have made supply metrics, well, let’s just call it “eccentric” for all types of vehicles. With manufacturers now sprinting in their production race, the inventory is stacking up, making EVs seem like the odd ones out.

Jim Cain, GM's go-to guy for clarifications, adds another layer to this puzzling story. He points out that if sales are low, and inventories are high (pretty much the situation with newly launched vehicles), the days-on-lot metric naturally shoots up. Oh, and don't even get him started on the inventory that's still in transit and not available for sale. It's like counting your chickens before they hatch.

California, known for its tech-forward population and environmental consciousness, has seen a steady rise in EV sales. But that's not the whole story. States like Texas threw a curveball into this equation. While the Lone Star state witnessed an initial rush for EVs like the Ford F-150 Lightning, the frenzy slowed once the early birds got their shiny new toys. Now, it seems the majority are going back to their trusty gas-powered trucks. Stephen Gilchrist, who oversees a whopping 18 dealership locations, likens the EV trend to a toddler. It's stumbling and rising, but the walk isn't quite steady yet. And, just a reality check: the utopian idea of everyone in an EV by 2030? Might be a bit of a stretch.

However, it's not all gloomy skies for EV enthusiasts. Mike Sullivan, the big shot behind the LACarGuy dealership network, is confident about the EV's long march. According to him, there's no doubt about where the road's leading; it’s just the speed bumps that remain uncertain.

The EV market is as unpredictable as next week’s weather forecast. While it's growing, there's a blend of stops, starts, and stumbles along the way. And just like any good drama, the future episodes promise to be even more thrilling. That drama is picked up on by those with vested interests and made even more dramatic. While the numbers don’t lie, they can tell a different story depending on your perspective. And nobody seems to be mentioning that while some EV prices have been going down, others have been going up faster than we could write about. Affordability is an issue and people are simply taking longer to make decisions.

Are the dealership lots filling up with unsold EVs? If so, they are the older generation electric cars, ones designed a few years ago and still leaving production lines of some legacy automakers. 2 or 3 years in the electric car technology is equivalent to a decade in a life of a comparable ICE-powered vehicle. Customers have caught up to the scheme, and simply want the better product. People now understand that there are better EVs out there, some of them worth waiting for. The hard truth may be catching up to some automakers - EV buyers don’t want to part with their hard-earned cash for the last-gen car. They want the future they were promised.

Via