Number of electric cars sold has PLATEAUED, with inventory piling up and prices slashed – but sales of gasoline vehicles remain strong

Electric vehicle sales in the US have remained stable even as car sales remain healthy overall, suggesting many buyers are in no mood to ditch petrol models anytime soon.

Over the past six months, total car sales were higher than the same months in 2022 or 2021, when demand for electric vehicles was still increasing.

But in 2023, electric vehicle sales have stalled at around 100,000 per month over the same period, after a period of rapid growth.

Due to reduced demand, inventories have increased and prices of electric cars have fallen over the past year.

In October, the average new EV cost $52,000, up from $65,000 12 months earlier.

Total car sales in 2021 and 2022 are above the level of the previous six months and increased by two percent compared to the same period last year

However, gasoline vehicles remain the most popular choice in the US, with the Chevrolet Silverado taking the top spot overall.

Car sales are up two percent from a year ago, despite widespread industrial action in recent months, which has brought many factories to a standstill in recent months.

The figures have prompted many EV makers to scale back operations amid apparent declines in demand.

Ford and General Motors have both postponed investments, while Tesla CEO Elon Musk suggested he might slow down during the company’s earnings call in October.

The billionaire has previously blamed higher interest rates for the stagnation in the EV market, but relatively strong vehicle sales suggest there is more to the story.

The high price of electric cars, which often cost more to produce than traditional cars, is cited in a recent study from S&P Global Mobility examining customer hesitancy to buy.

Lowering production costs is difficult for manufacturers because the raw materials needed to make metal-rich batteries are more expensive than traditional gasoline tanks.

Musk has already indicated that his next generation will cost $25,000, but will be more “utilitarian.” the Wall Street Journal reports.

Several EV makers, including Ford and GM, have suspended or halted investments in the sector due to declining demand

Auto sales rose overall despite widespread industrial action by the United Auto Workers Union, while factories like this one in Wayne, Michigan, halted production in September and October.

Ford reported that its EV unit posted a profit loss before interest and taxes of $1.3 billion, bringing its nine-month loss to $3.1 billion.

At the end of last year, the F-150 Lightning was the best-selling electric truck in the U.S., but Ford recently reported that third-quarter sales fell 46 percent year-over-year to about 3,500 vehicles.

And last month, the manufacturer said it would lay off about 700 workers at the Detroit plant that produces the electric F-150 Lightning pickup, while GM cut production of the Chevrolet Silverado EV due to declining demand.

The market is stagnating despite the White House pledging to make half of all car sales electric by 2030.

Although the industry could get a boost with the introduction of a $7,5000 federal EV tax credit, making a rebate accessible at the point of sale rather than requiring customers to wait until they file their taxes.

However, some experts think the market flattening is due to the fact that affluent environmentalists will have already bought an electric car, leaving no room for growth.

“There are early adopters, and the early adopters have taken over,” said Joe McCabe, president and CEO of automotive consultancy.

He suggested that these adopters tended to be wealthier city dwellers, known as “urban cowboys.”