Oct 2023

EV Transition Will Take Time

Sales growth has slowed dramatically for EVs. EVs made up 8% of U.S. light-vehicle market in the 3rd quarter, up from 7.5% in the 2nd quarter, according to Cox Automotive. The average transaction price for an EV was $53,376 in August, according to Kelley Blue Book, down 19% from a year earlier, but still about $5,000 more than the overall average transaction price. All of this is temporary. The costs involved in building batteries and other EV components will come down as production scales up — and prices will follow.

“The industry is going through a once-in-a-century transformation. Despite industry leaders’ relatively quick pivot, aligning the pieces of the EV puzzle and getting mass-market appeal will take time.”