The Los Angeles Times reported, “After years of rapid expansion, California's burgeoning EV market may be showing signs of fatigue,” adding, “High vehicle prices, reliability Poor charging networks and other consumer concerns appear to be dampening enthusiasm for zero-emission vehicles.”
“For the first time in more than a decade, electric vehicle sales fell significantly in the second half of 2023…”
Sales of all-electric vehicles and light trucks in California are off to a strong start in 2023, increasing 48% year over year in the first half. By that point, California's EV sales had reached about 190,807, just over a quarter of the nation's EV sales, according to the California New Car Dealers Association. But that's what happened late last year, and it's causing anxiety. Unit sales in the third quarter decreased by 2,840 units compared to the previous quarter. This was the first quarterly decline for his EV in California since the Tesla Model S was launched in 2012. And the fourth quarter was even worse, with sales falling 10.2% from 100,151 units to 89,933 units. .
Buoyed by Tesla's sales success and encouraging other automakers to enter the electric vehicle market, until recently it seemed like a given that consumers would embrace EVs. In fact, strong sales growth is a key premise of the state's zero-emission vehicle plan. Based on degassing mandates, by the 2026 model year, zero-emission vehicles must account for 35% of all new car sales. Nationwide, EV sales growth has slowed as automakers such as Ford and General Motors have at least temporarily cut back on their EV and battery production plans. Rental car giant Hertz has also backed away from plans for a major shift to EVs. Hertz announced plans to buy 100,000 Teslas a few years ago, but is now selling its EV fleet.
Corey Kantor, an EV analyst at energy research firm BloombergBNEF, said that while recent sales numbers are worrying, EV He said there is sufficient momentum behind the transition. . These investments will total $616 billion globally over five years, according to consulting firm AlixPartners.
However, the article notes that because EVs have not achieved “price parity” with gasoline engines, only 7.6% of cars sold in the U.S. last year were electric, while in California, EVS had a market share of 20.1%. He points out that
The article also quantifies concerns about the reliability of California's public charging system, stating that it “can be expected to malfunction at least 20% of the time, according to studies by academic researchers and market analysts.” ”. According to the article, the state Energy Commission will also begin collecting statistics on reliability after injecting $1 billion in state funds into charger companies. However, the article also mentions the waiting time at the charger. “Even if they were reliable, there aren't enough chargers. EV sales are outpacing the installation of public chargers.”
Any good news?
The federal government is spending $5 billion nationwide to install fast chargers every 50 miles on major highways. California will receive $384 million. Seven major automakers are also collaborating to build their own North American charging network called Ionna. The joint venture plans to install at least 30,000 chargers (available for all EV brands) at stations with on-site or nearby restrooms, food and retail outlets.