EV shift slows with growing inventory, other hurdles

The shift to electric vehicles in the U.S. is hitting speed bump after speed bump, and industry leaders are reevaluating the pace of the transformation.

EV sales growth has stalled. Last month, General Motors delayed EV pickup production and Honda canceled a deal to build affordable EVs with GM. Ford said it is pushing back $12 billion in EV spending, reducing Mustang Mach-E production and delaying one of two planned battery plants. EV-only maker Tesla saw its revenue growth fall in the third quarter to its slowest pace in more than three years.

Mercedes-Benz dealers are complaining about slow-selling EVs piling up on their lots. It took 82 days on average to sell the battery-powered EQ models in September, according to Edmunds data. Industrywide in September, dealers had 97 days' supply of EVs, excluding Tesla and Rivian, compared with 57 days for internal combustion engine vehicles, according to Cox Automotive.

The main issue is sluggish demand, despite a robust supply and growing selection of EV models, said Lance Iserman, CEO of Morrie's Automotive Group.

"That's related to range anxiety and cost. As the early adopters have adopted, the average consumer is not willing to pay a premium for an electric vehicle with a range of only 300 miles or below," he said.

Still, there is a disconnect: Fluctuations today won't determine long-term trends, analysts say.

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-- Hannah Lutz
 

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