The Curious Case of EVs in America: Inventory Is Piling Up

By: James Flippin · July 12, 2023 · Reading Time: 2 minutes

Wavering Demand

Fueled by incentives from the Biden Administration, major automakers have been ramping up production of electric vehicles over the past few years. Despite their success in churning out new electrically-powered models of traditional cars, Americans have still been a bit hesitant to actually make the switch.

When surveyed, over half of consumers said that they are considering buying an EV — up 13% from 2021. So far, this interest hasn’t translated into sales.

Supply Stockpile

In anticipation of steep demand, the nationwide supply of EVs has swelled 350% this year to more than 92,000 units across different makes and models. Dealerships currently have a 92-day supply of EVs, which is nearly twice the 54-day supply for traditional gas-powered vehicles.

This is a sign that electric vehicles are showing up to dealerships and then sitting on lots for longer than expected. In June, the Korean luxury brand, Genesis (HYMTF), only sold 18 of its Electrified G80 sedans, which are nearly $82,000. Audi’s (VWAGY) Q4 e-tron and Q8 e-tron have been sitting for longer than expected, as has the GMC Hummer EV SUV.

The Main Concerns

Industry experts are blaming the high price of EVs as well as concerns over finding a charger as the main reasons consumers aren’t buying. However, both of these issues should improve in the next few years.

Analysts predict the prices of EVs will reach parity with gas vehicles by 2025, and more EV charging infrastructure is getting built every day across the US.

For consumers this means that cheaper EVs are likely on the way. For investors this means taking a look at inventory reports to see which cars are selling and which models appear to be stalled.

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