So the soft market for EVs is hardly a surprise- the news is about up front costs and charging infrastructure etc but the simple fact is that the fall in EV demand has mirrored the fall in gas prices. I bet a dollar a gallon increase in gas would drive ev sales through the roof…
But as EV adoption rises, demand for gas will fall by the same amount, right? Which would mean that gains in EV popularity essentially guarantees that gas remain cheap, which means that people will want gas cars indefinitely. As much as I am a believer in market efficiency, I fear that we are stuck with gas cars for a very very long time.
Correlation and causation. Yes fuel prices have an effect on EV demand. But right now the thing suppressing demand is high purchase cost coupled with high interest rates which only serves to push the effective purchase cost even higher.
It’s fashionable with EVs for some reason to entirely ignore purchase cost and fixate on running costs but this misses the big picture.
Big picture…average new car purchase price…(+$48,000)[https://www.consumerreports.org/cars/buying-a-car/people-spending-more-on-new-cars-but-prices-not-necessarily-rising-a3134608893/#:~:text=The average cost of new,many other factors at play.]
The opperating costs is what fills the small price gap.