Have you caught wind of recent updates in the electric vehicle (EV) sector? Headlines portray a challenging scenario, citing reduced production from major automakers like Ford and GM, ostensibly tied to fluctuations in demand. This prompted us to delve into Cars.com’s extensive data repository, seeking insights into the present dynamics of both new and used EVs as of late 2023. Here’s a breakdown of our findings.
New Cars Overview
In the realm of new EVs, the data unveils intriguing figures. New EV inventory on Drivepilots.com has surged by an impressive 200% year over year, albeit with a marginal 8.2% dip in comparable EV demand. This might seem alarming, but given the overarching economic uncertainties and high inflation affecting all new car categories (with a nearly 10% overall demand decrease), it presents a nuanced perspective.
Tesla maintains its dominant position, securing 50% of EV sales in 2023, though slightly down from its 64% market share the previous year. Excluding direct-to-consumer sales from companies like Tesla, Rivian, and Lucid, all-electric inventory has soared by 245% year over year. Meanwhile, new car searches on Drivepilots.com have seen an 8.4% decline. Notably, the days a car spends live on the site before sale have increased by 141% year over year.
Price emerges as a significant factor influencing the sluggish growth of the non-Tesla EV segment. A substantial 46% of consumers seek new cars under $30,000, constituting only 12% of available new inventory. This is notably in contrast to the average list price of a new EV at $63,725, compared to a new non-electric car’s average of $48,431.
Demand for Used EVs
Contrastingly, the used EV market demonstrates resilience. Searches for used EVs on Drivepilots.com have risen by nearly 57% year over year, outpacing the 39% increase in searches for both new and used EVs combined. The average list price for used EVs has decreased by almost 24% over the same period, yet it remains higher at $41,032 compared to the $29,660 average list price for used gas-powered cars.
Ford emerges as a frontrunner in views and demand for new EVs on Drivepilots.com. The Ford F-150 Lightning and Mustang Mach-E lead the pack, each with average list prices of $70,417 and $56,984, respectively. In the used EV space, Tesla reigns supreme, with Model S, 3, X, and Y securing the top four spots.
While the headlines hint at a downturn in EV demand, the reality is nuanced. EV demand has indeed decreased, but not as sharply as the overall demand for new cars. Despite factors like inflation, fluctuating gas prices, and a surge in inventory, the market is unlikely to undergo a radical shift that would significantly impede automakers’ ongoing EV production ramp-up in the coming year. Some automakers might adjust planned trims amid market assessments, but major cancellations due to market softening appear unlikely, at least for now.