EV Sales Shift Gears as April Demand Declines, New Industry Data Show

The electric vehicle (EV) market was stuck in reverse last month as consumer demand hit the brakes.
New industry data compiled by research firm Motor Intelligence revealed a 4.3 percent decline in U.S. electric vehicle sales in April. Meanwhile, overall automobile sales saw a 10 percent increase, highlighting a stark contrast in market trends.
The drop in EV sales was observed across many brands, including BMW, Ford, and Hyundai. Tesla Motors accounted for much of last month's slump.
The Tesla Model S cratered 71 percent, followed by the Tesla Model X (negative 34.5 percent), the Cybertruck (negative 30.2 percent), and Model Y (negative 22.6 percent). Estimates suggest sales of the Tesla Model 3 rose 24.2 percent.
Tesla is not the only EV maker to witness weakening demand. Sales of Rivian electric cars declined by close to 33 percent in April. Lucid, however, enjoyed a 7 percent boost in sales.
But while April could indicate a coming slowdown, the EV market enjoyed a solid first quarter.
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According to Cox Automotive's
'Despite many obstacles — and what you may read elsewhere — electric-vehicle sales continue to grow at a healthy pace in the U.S. market,' the report stated. 'Roughly 7.5% of total new-vehicle sales in the first quarter were electric vehicles, an increase from 7% a year earlier.'
Cox Automotive predicts that EV sales will remain volatile for the rest of the year. Based on other consumer sentiment surveys, the broader industry could also face challenges.
Examining the EV Market
A 2024
According to an April Gallup
The polling firm's research did not identify the reason for waning enthusiasm for electric cars. However, over the last few years, other reports have highlighted growing concerns surrounding the price, lengthy charging times, high electricity bills, and the lack of long range.
A paucity of charging infrastructure is also a concern, says Goldman Sachs Research.
'As EV penetration accelerates, rapid charging station infrastructure issues have emerged as a tangible problem,' the institution said in a May 2024
Demand for EVs could hit another pothole if one piece of legislation passes in Washington.
In February, Sen. John Barrasso (R-Wy.) introduced the
'The hard-earned money of taxpaying Americans should not cover the cost for the luxuries of the nation's elite. Nor should we be allowing China to infiltrate our markets and undermine our supply chain,' Barrasso said in a statement announcing the legislation.
A Rivian truck recharges at a charging station during a snowstorm in Truckee, Calif., on March 3, 2024.The federal EV tax credit offers individuals and businesses up to $7,5000 for new electric vehicles.
House Speaker Mike Johnson (R-La.) recently stated that the lower chamber will likely axe the incentive.
'I think there is a better chance we kill it than save it. But we'll see how it comes out,' Johnson said in an
In the United States, automakers have revealed intentions to scale back their EV strategies as they report financial hemorrhaging.
Ford Motor
This past summer, Ford announced it was slowing its EV plans to cut costs.
'With pricing and margin compression, we've made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive [earnings before interest and tax] within the first 12 months of launch for all new models,' Ford CFO John Lawler said in a
General Motors slashed its EV production forecast for 2024 by half a million units and confirmed it would emphasize hybrid models. The automaker also halted production at an all-EV facility in Canada as it adjusts to market conditions.
It could be a challenging year for the automotive industry as it grapples with the challenge of navigating through the tariff turbulence. A majority of EVs sold in the U.S. market last year were assembled domestically, but companies still required parts and components sourced in foreign markets.
'The year certainly started strong, but the road ahead will be anything but smooth,' said Stephanie Valdez Streaty, an analyst at Cox Automotive.
As business and consumer confidence deteriorate, negative economic perceptions could adversely affect the auto industry as a whole.
According to a new
Rivian is already preparing for the worst, trimming the year's sales outlook by about 5,000 units.
'The challenge is consumers are more price-sensitive than they typically have been and are looking for lower-price alternatives,' said Rivian CEO RJ Scaringe in a recent earnings
The starting price for a 2025 Rivian model is about $71,000.

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