According to the Wall Street Journal, U.S. auto dealerships are dealing with a glut of electric vehicles (EVs) as traditional gas-powered cars continue to fly off the lots. Despite considerable investments from the federal government and the auto industry into EVs, Americans are still drawn to traditional gasoline-powered cars.
Data from car-shopping website Edmunds shows that EVs are taking around three weeks longer to sell on average than their gasoline counterparts, a significant increase from a year ago when electric models were selling faster. As a result of this changing trend, auto companies are re-evaluating their investment plans for electric cars and trucks.
One of the significant reasons behind this preference for gasoline cars is their cost. According to the Journal, the average cost of buying an EV was around $52,000 last month, while a traditional gasoline-powered car cost less than $45,000 on average. Worse still, experts predict that these high prices are unlikely to dip before 2025.
The lack of electric charging stations and consumer unease about EV reliability are other factors contributing to the lack of EV sales. Automakers are yet to address these concerns in a convincing manner.
EVs make up a small portion of the market, primarily in a few states and cities such as California, which accounted for nearly a quarter of all EVs sold from July to September, with the top four metropolitan areas for EVs being in California.
The present situation has left automakers scratching their heads over what to do with the thousands of unsold electric vehicles on their lots.