What looks like an electric vehicle inventory glut signifies growing pains, not a cooling market, experts say.
The current EV narrative has nearly 91,000 cars piling up at dealerships as consumer enthusiasm for the new technology dwindles. At some dealerships, that's true. Cox Automotive data shows EV supply of more than 100 days on dealership lots, more than double the number of gasoline vehicles.
Still, that data is complicated by the nature of EV sales. EVs are an expanding slice of the overall market but until recently were hindered by short supply. Now, the EV sales share is outpacing the inventory share, said Tyson Jominy, vice president of data and analytics at J.D. Power.
"The story that demand for EVs is slowing is patently false," Jominy said.
Helped by robust sales related to changing federal zero-emission vehicle sale incentives this year, EVs made up 8.6 percent of retail sales and 6.7 percent of available inventory in June, according to J.D. Power.
Now, Cox Automotive inventory data shows 103 days' supply of EVs on average in June. The figure represents EVs at dealerships, excluding Tesla autos because that brand sells directly to consumers and doesn't have dealerships. Days' supply — or the average number of days a vehicle will stay in dealers' inventory before selling — can include vehicles in transit to dealerships and those on dealers' lots, Cox said.