Electric vehicles are facing an uphill battle towards profitability, with a lack of public support posing a significant challenge. A report by Bank of America, Car Wars 2024, predicts that electric vehicles and hybrid cars will comprise only 60% of new models between 2025 and 2028, a decline from previously expected figures.
Meanwhile, electric vehicle manufacturers, except for Tesla, are struggling with rising production costs. “There’s a tremendous amount of work for the incumbents to do to reduce their EV costs and remain competitive with Tesla,” said John Murphey, senior automotive analyst at Bank of America Securities.
Murphey further noted that profitability for electric vehicles remains out of reach, estimating that it will take another four to five years to achieve profitability. The American Automobile Association’s 2023 survey reported that 63% of adults are unlikely to purchase a fully electric vehicle, a 10% increase from last year. Only 18% stated they would be likely to buy an electric vehicle, a decline from 23% the previous year.
In response, Representative Andy Ogles (R-TN) introduced the “Free Market Drives Itself Act,” which seeks to dismantle the Electric Vehicles Working Group in an effort to reduce spending on electric vehicles. Ogles called electric vehicles “not a practical choice for Americans” and criticized the Biden Administration’s promotion of “green transportation” efforts.
