At least for the time being, EV sales are still pushing higher.
Helped along by Trump's threat to end EV tax credits, sales of EVs were up 12% in the fourth quarter of 2024, according to a new report from Bloomberg. Forecasts from researcher Cox Automotive put the year's total at 1.3 million EVs sold.
Plug-in vehicles now make up about 8% of the US car market, only slightly more than last year, despite a rise in sales from the prior quarter's 8% growth rate. A strong fourth quarter boosted total car sales, with the annualized 2024 rate hitting 15.9 million, up from 15.5 million in 2023.
Bloomberg writes that this EV growth may not continue into 2025. Only 25% of shoppers are considering an EV, down two points from last year, per JD Power.
Jonathan Smoke, Cox’s chief economist said last month: “Threats and worries” sparked a “sense of urgency to buying. That’s true in overall purchase activity, and it’s also very much true to the EV story.”
Donald Trump plans to dismantle federal EV incentives, including the $7,500 tax credit, calling Biden’s EV policies “insane.” Proposed tariffs on Canada and Mexico could also raise car prices.
Improved interest rates, manufacturer incentives, and post-election confidence have boosted 2024 car sales forecasts, despite earlier setbacks from inflation and a dealership cyberattack. GM led US sales with 2.7 million vehicles, while Stellantis fell to sixth with a 15% decline.
Tesla remains the top EV seller but saw its first annual sales drop in over a decade, as we detailed this week. For the year, the company reported sales of 1.79 million vehicles for the year, falling short of the 1.8 million delivered in 2023 and missing analysts' consensus estimate of 1.8 million.
High costs and limited charging infrastructure keep EVs out of reach for many, with demand projected to fall by 27% if tax credits are removed, the article says.
Meanwhile, hybrids continue gaining favor as automakers like Stellantis and Ford delay EV launches to focus on more affordable options. Hyundai plans to double its hybrid lineup, while Ford pledges hybrid versions across its models by 2030.
