Is the Electric Car Market Collapsing or Cooling?

by Katy Grimes at

The electric car market is cooling – in fact, many say it is downright chilly.

“Electric vehicle sales have hit a tipping point,” Yahoo Finance reports. “Research firm Kelley Blue Book (KBB) finds that US EV sales in the third quarter crossed 313,000, nearly a 50% increase from a year ago, with EV market share hitting 7.9% — its highest-ever level. But this milestone might not be good enough for automakers spending billions on an EV transformation.”

EVs are much more expensive, costing significantly more to own than a hybrid, require electric charging, have range limitations, and require electricity to charge on an already taxed electric al grid – whereas hybrid vehicles reduce the use of fossil fuels while lowering emissions in the short term.

Ford and even Tesla are dialing back EVs. “GM is scrapping its target of producing about half a million new EVs by the middle of next year, Ford extended its timeline to hit a goal of 600,000 EVs a year, and even Tesla sees demand softening.”

Because of the expense, and charging issues, electric cars have become a harder sell. “If it doesn’t have a motor, it’s going to be a problem,” a car expert told the Globe. “That’s what makes hydrogen such a viable source – no batteries.” (That’s another article at another day…)

Last week, Hertz Car Rental company announced that it plans to sell off 20,000 of its electric vehicles, including Teslas, write off a $245 million loss, and buy more gas-powered vehicles. It seems that travelers aren’t crazy about electric car rentals. A friend reported when he and his wife traveled to Hawaii for vacation, the car rental agency only had electric cars available. Begrudgingly they accepted one. However, they were never able to find a charging station and quickly returned the car to Hertz. The car rental agency acknowledged there were no charging stations on the island except at the rental car location.

This is what forced consumption of a product by government looks like.