Supply is apparently exceeding demand in the EV market. In a normal market, prices would adjust downward. But EVs are not a normal market, they’re a government dictated market. From Eric Peters at ericpetersautos.com:
Interesting news on the EV front.
Unlike the bodies that never stacked up like cordwood during the “pandemic,” they are piling up. There is a pushing three months’ worth inventory of unsold EVs – and there are only five months left in this year. It is probable that many 2023 model year EVs will not have been sold by the time it is 2024 – and it is possible there will be so many 2024s stacked up by then that dealers will be paying people to take the unsold (and rapidly depreciating) 2023s that are taking up space off their lots.
The reason for this problem is the putting of the supply horse ahead of the demand cart. It is of course normally the reverse. Demand for a thing prompts whoever sells it to supply more of it, to meet the increasing demand. But it is different with EVs. The “demand” signal is coming from the government – federal and state – via regulations that effectively require so-and-so-many EVs to made (and put on offer) but which the government isn’t buying.
We are expected to buy what the government demands.
The problem there is at least two-fold. First, most EVs are too expensive for most people to be able to afford – which renders economically irrelevant whether most people want an EV. Most people want many things they cannot afford – and so do not possess them. It is why most people do not own a private airplane, though it is likely true that most people would love to have one.
