Why EV sales are lukewarm in America, but hot in Europe
XLY•U.S. EV sales fell 30.7% through September, to 6% of vehicle sales, while Europe’s EV share rose to 23.2% from 17.7%. U.S. buyers have shifted toward hybrids and used EVs since the $7,500 federal tax credit expired.
1. Sales diverge by region
EV sales in the U.S. declined 30.7% through September, accounting for 6% of overall sales, compared with 8.5% a year earlier. In Europe, EVs made up 23.2% of the market, up from 17.7%, as buyers sought relief from higher fuel prices stemming from the war in Iran.
2. U.S. buyers choose alternatives
Hybrid sales in the U.S. rose 23% through the first three quarters, reaching 15.6% of total sales. Used EV sales increased 19% through September. Automakers have discontinued some electric models or scrapped plans for new ones since the $7,500 federal tax credit expired a year ago.
3. Automaker results vary
Tesla’s U.S. sales fell 14% in the first three quarters, while Rivian’s rose 29%, helped by the launch of its R2 SUV. Ford’s EV sales declined 68% through September and General Motors’ fell 43%. Hyundai said its EV sales had recovered somewhat since gas prices began rising in late winter.
