Unsold electric cars continue to pile up on dealer lots amid the auto industry’s apparent misjudgment of buyers’ demands while attempting to compete with Tesla.
Most notably, luxury brands are struggling with high inventories of EVs that nobody wants to purchase.
With the increasing discrepancy between electric car supply and demand signals, there is a big looming public concern over buying an EV due to charging concerns and the hefty price tag.
As Axios reported, senior manager of economic and industry insights at Cox Automotive, Jonathan Gregory, linked the situation to the 1989 film Field of Dreams, which coined the phrase, “If you build it, he will come.”
Gregory said the car industry has now built its electric vehicles, but they are just waiting for the customers.
According to a survey by Cox Automotive, 51 percent of consumers are now considering either a new or used EV, up from 38 percent in 2021.
But despite the slight increase in interest, the sales are not matching the increased output of EVs, leading to unsold electric cars piling up in dealer lots.
The nationwide supply of EVs in stock has ballooned to almost 350 percent in 2023, more than 92,000 units – which translates into a 92-day supply.
The data mentioned above does not include Tesla, which sells its EVs to customers directly.
Dealers have a low 54 days’ worth of gasoline-powered vehicles in inventory when; normally, there is a 70-day supply.
Meanwhile, luxury brands are struggling.
According to Cox Automotive’s research, the Korean luxury brand Genesis sold just 18 of its nearly $82,000 G80 EVs in the 30 days leading up to June 29 and had 210 in stock nationwide – a 350-day supply.
Other luxury brands, including GMC Hummer EV SUV, Audi’s Q4 e-tron, and Q8 e-tron, have extensive inventories well above 100 days.
To make things worse, aside from the price tag, these vehicles are typically not eligible for federal tax credits.
Then, of course, there is an effect on jobs.
The Daily Fetched reported last year that Ford laid off 3,000 workers to save money while it ‘transitions’ to electric vehicles.
“The workforce reduction mostly targets employees in the U.S., Canada and India. About 2,000 of the targeted cuts will be salaried jobs at the Dearborn, Mich., automaker. The remaining 1,000 employees are working in contract positions with outside agencies, the company said at the time.