U.S. incentives to buy electric vehicles are whacked.

The U.S. electric vehicle market is growing, but not fast enough during the latest quarter to prevent unsold EVs from stacking up at some automakers’ dealerships or to allow Tesla to avoid new price cuts, according to analysts and industry data.

Rising inventories and price-cutting could represent only a short-term pause in EV market growth. But they could be signals that boosting U.S. EV sales above the current 7% market share level will be more costly and difficult than expected, even with federal and state subsidies.

Automakers North America have billions of dollars in EV-related investments riding on how the next several quarters play out. If production of EVs continues to outpace demand, automakers will have to choose between slashing prices and profit margins, or slowing assembly lines.

All automakers need are new customers and consumers obviously aren’t really interested. The US uses a carrot-and-stick method that is similar to what China & the EU use to spur electric vehicle adoption. However, it is likely the U.S. spends more money in the process since EVs were only 7% of 1H 2023 sales despite being up almost 2% from last year and prices declining.

Detroit auto makers are starting to notice what is happening with electric cars too.

Hopefully, the lack of interest in electric cars demonstrates an implicit or fair amount of skepticism about human-caused climate change overall.