Why EV Sales Are Falling | CNBC Marathon



CNBC Marathon explores the decline of electric vehicle sales and its implications.

In August 2023, it took about twice as long to sell an EV in the U.S. as it did the previous January. Prices of EVs are down 22% year-over-year and that’s mainly driven by Tesla. About two thirds of EVs sold are Elon Musk’s brand. Companies like Ford have ramped up hybrid production as demand has leveled off.

Used EV prices are falling. Studies show that used EV prices fell somewhere around 30 percent in September and October 2023 from the same period in 2022. Used overall vehicle prices including internal combustion engines (ICE), hybrid and EVs declined by only around 5 percent.

In October 2021, Hertz publicly announced it intended to buy 100,000 Tesla vehicles. Newly emerged from bankruptcy, Hertz had a bold plan to lead the EV revolution in car rental. Shares of Hertz soared, as did Tesla’s – its market value hit $1 trillion. First mover advantage aside, it would help Hertz distinguish itself in an industry plagued by commoditization. But only a couple of years in, the rental company’s EV strategy is facing some serious challenges: pricing troubles, skyrocketing repair costs and low resale values. Meanwhile big rental rivals are holding back on EVs.

Chapters:
00:00 Introduction
00:34 Why EVs Are Piling Up At Dealerships In The U.S (Published October 2023)
17:21 Why Used EV Prices Are Falling (Published December 2023)
32:29 Why Hertz’s Bet On Tesla Isn’t Paying Off In The U.S. (Published December 2023)

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Why EV Sales Are Falling | CNBC Marathon

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41 thoughts on “Why EV Sales Are Falling | CNBC Marathon”

  1. For traditional car manufacturers, yes, because they don’t know how to make a real EV, and people won’t buy it. But for Tesla, it is totally different, there are nothing in stock, even used cars. Real EVs not sold on dealerships, they sold online. These people on suits will be out of business soon!

    Reply
  2. I completely agree with the Mercedes dealership owner that suggested that we've gone too fast in this whole EV thing. We finally put a PV system on our house which made sense with NEM 2.0, but wouldn't with NEM 3.0, because their will always be those market forces that cost you because you're trying to do the right thing- Edison's NEM 3.0 tarriff rates are penal because they aren't getting any money through the solar revolution. Same with EV. But to us, the biggest factor is still infrastructure: we live in a semi-rural town that doesn't have any charging stations, and even if we had the capacity at home, why pay the $0.32/kwh charge that Edison is charging even at the lowest rate period? In addition, let's say we go and visit some family 400 miles away in Nevada….they don't have any capacity to charge an EV at home, so the only solution is to park a $60,000 vehicle somewhere in a unsupervised charging lot for a few days?!?!?! Are you kidding me??!?!?! It's just not feasible until the infrastructure is much more improved.

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  3. United States government said “buya hybrid or EVs and we’ll give you a tax incentive up to $7500”! Tax season comes around and you realize your vehicle doesn’t apply because it wasn’t built in the United States. The idea that the government is trying to get everyone on board to purchase a hybrid or electric vehicle then to step it back is laughable and absurd

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  4. I just don't wanna care for charging. Living in an apartment block, cars park on the street, couldn't care less about public charging. I fill the gas tank once a week, 5 minutes in the gas station and just be on my week without thinking about charging. Press physical button to activate main functions. Happy with that.

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  5. Because everyone who wanted an EV got one? Because people shopping for cars noticed that EVs are being marked down and down, to the point that you can get an Audi Q4 e-tron for the price of a Q3 45? Or that EVs are being offered with 7500m/y leases because banks already figured out that people don't drive them?

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  6. Idk where that lady got that information from that people is ok to settle 1 hour charge time. That is a huge inconvenience for people with busy lives. Also I could never see myself waiting around for hours if the charge station if its busy. We're not ready for full ev transition, maybe as a work beater vehicle but not the only vehicle or family hualer. Also EV is turning out that its not as reliable as ice or Hybrids.

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  7. #1 selling model in the world was Tesla Model Y. It was important to report that days of inventory for EV leader Tesla is below 30 days. Focusing on negatives more than positive makes you bias

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  8. In the meantime China's EVs are starting to rule the World… By the time Americans come around on EVs it'll too late. China already controls the supply chain, and has achieved economies if scale.

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  9. To be clear. EV sales are not falling. They may slow for a few months before increasing again as new models become available. The misleading information of falling sales is attributable to the powerful car dealership lobby in the USA, something we don't have here in Europe. US dealerships make 45% of their profits from servicing and selling parts for ICE cars, while EVs require minimal servicing and have a fraction the number of parts of an ICE powered car. Sure, certain models may not be selling well and some OEMs are whingeing that they can't make money building and selling them. That's OK, its called capitalism and the survival of the fittest as Tesla, BYD, Volvo and others are doing just fine.

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