Electric-vehicle dealerships are having a Hollywood experience.
The script, however, isn’t getting rave reviews from the dealerships, as EVs sit unsold on lots across the U.S..
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It's a "Field of Dreams" moment for automakers making big bets on electrification — they've built the cars, and now they're waiting for buyers to come, says Cox Automotive's senior manager of economic and industry insights, Jonathan Gregory, according to Axios.
In a June 30 report, Cox noted that the U.S. electric-vehicle market has hit “critical mass, outpacing average days’ supply of gasoline vehicles at dealerships.”
This year the number of EVs on dealer lots has more than quadrupled to 92,000, Cox data show, as reported by Axios. That's a 92-day supply.
Fossil-fuel vehicles, on the other hand, are averaging 54 days in inventory as supply-chain delays are easing. That’s significantly shorter than the average inventory supply time of 70 days.
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The EV inventory delays compare with data showing U.S. vehicle consumers are bullish on electric vehicles. More than half (51%) of auto consumers say they’re mulling the purchase of a new or used EV in 2023. That’s up from 38% in 2021, Cox reported.
One issue holding back sales of new EVs is that prices of used electric vehicles are plummeting, leading more buyers to explore the used market.
Used-EV prices fell nearly 30% in June, according to a new study by iSeeCars. Moreover, “the free fall keeps accelerating, growing from 8.8% in January to 16.8% in March to 29.5% in June,” the report stated.
Tesla’s (TSLA) -) Model 3 entry-level sedan and Model X luxury-SUV prices are falling the furthest, followed by the Nissan (NSANY) -) Leaf and Tesla Model S luxury sedan, ISeeCars reported.
That’s certainly not good news for EV dealers.
“A year ago, used-EV prices were on the upswing, rising faster than the average used car,” said Karl Brauer, iSeeCars executive analyst. “Electric-vehicle prices are now falling at nearly 10 times the rate of the average used vehicle, reflecting a clear shift in EV supply and demand.”
