Electric vehicles (EVs) have been gaining popularity due to their environmental benefits and potential cost savings. However, recent reports show that EV sales have been slowing down, with inventories piling up on car lots across the country.
Auto experts are increasingly skeptical that the U.S. will meet its 2032 target requiring 67% of new cars to be EVs, with the current EV market share in the U.S. being just 7.9%
Despite price cuts and tax breaks, many Americans are still not buying EVs and here is why.
High Upfront Costs
EVs tend to have higher upfront prices than similar gas-powered cars, making them less accessible for many consumers.
“EVs usually cost at least $10,000 more than their comparable gas counterparts,” says Joseph McCabe, president of AutoForecast Solutions.
When gas prices are high, it makes sense for buyers to switch to EVs, and this was the situation in 2022 when EV sales were at an all-time high. However, gas prices have been relatively low in 2023-24, so there’s less incentive to go electric.
Limited Charging Infrastructure
The lack of convenient charging options, especially in remote areas, is a significant barrier to EV adoption.
There is a significant disparity between the cost of charging slowly at home and at public rapid chargers. The cost of getting fuel from the gas station and charging at a public charger is pretty much the same, and getting fuel at a gas station is much more reliable and less time-consuming.
According to AAA , 56% of people say the lack of convenient charging is a top reason for not going electric.
Battery Depreciation
The rapid depreciation of EV batteries, which can lose up to 20% of their value in a year, is a concern for potential buyers.
In 2023, the average EV had lost 49.1% of its value after five years.
Consumers prefer vehicles with high fuel efficiency and zero range anxiety, and fuel-powered vehicles give them this combination. This is one of the main reasons why Americans are saying no to electric vehicles.
Limited Range
Many EVs have limited ranges, making them less practical for long-distance travel and daily commutes.
Some high-end EVs promise 300+ miles of range on a single charge, but even that is not enough to cover a common drive like San Francisco to Los Angeles. You’d have to take a charging break, potentially adding 30 minutes or an hour to an already long drive. While the range of EVs has been improving, some models still do not offer the same range as gas-powered cars, leading to “range anxiety” for potential buyers.
High Insurance
EVs are generally more expensive to purchase than gas-powered vehicles, and their batteries are also more costly to repair and replace. As a result, monthly premiums can be higher.
According to the National Association of Insurance Commissioners, insuring an EV can cost up to 20% more than a gas-powered car.
Insuring a Chevrolet Bolt costs an average of $2,000 yearly, while the same coverage would cost $4,300 for a Tesla Model X.
High Maintenance
While EVs require less maintenance than gas-powered cars, the cost of replacing a battery pack can be high, especially for older models. In some states, such as California, EVs are more expensive to register. Some require their owners to pay regular subscription fees for services, and repairs are expensive. Plus, the fluctuating cost of electricity means it’s not always cheaper to fuel an EV.
High Repair Cost
EVs are so complex that they can only be repaired in company repair centers. You can’t just pop by your local mechanic and get things done; the mechanism is too complex. Many mechanics are hesitant to repair an EV because repairing an EV means they’re working on High Voltage, unlike when repairing a gasoline-powered vehicle. One mistake can be hazardous to the people repairing them, and that is not a risk many are willing to take.
Environmental and Humanitarian Concerns
Some consumers are concerned about the environmental impact of EV battery production and disposal.
While EVs produce zero tailpipe emissions, the production of their batteries requires significant amounts of energy and raw materials, such as lithium and cobalt. These materials are often mined in environmentally harmful ways and harsh conditions, leading to concerns about the environmental impact and the exploitation of people working in such harsh environments.
Lack of Affordable Models
There is a lack of affordable EV models that meet the needs and preferences of middle-income Americans, who represent the next target group of buyers.
There aren’t many flexible and affordable options in EVs like their counterparts. EVs fail to fulfill basic needs like Carpooling or picking up kids, causing many Americans to not make the transition.
Lack of Government Incentives
Government incentives for EV purchases are often unreliable and not widely publicized, making it difficult for consumers to take advantage of them.
While some states offer rebates, tax credits, or other incentives to encourage EV adoption, the availability and amount of these incentives can vary widely.
This inconsistency makes it challenging for consumers to plan and budget for the purchase of an electric vehicle, leading to uncertainty and hesitation.
Cold Crash
Cold environments aren’t great for EV Batteries. This is because the chemical reactions that occur within the battery to generate electricity can be slowed down by cold temperatures, which can reduce the range and performance of the vehicle. According to a study by AAA, electric vehicles can lose up to 41% of their range in cold weather, making them less practical for people living in colder climates.
Hybrids are Preferred
According to iSeeCars.com, the average price of an Electric Vehicle is $53,758, compared to the average price of a hybrid card, $33,214.
Not only are hybrids cheaper, but they also offer good fuel efficiency and can make long trips without requiring charging breaks.
