Why It Seems Like No One Wants EVs Anymore

People still want electric vehicles—but the pace of growth has cooled rather than collapsed. After years of rapid expansion, EV demand in the U.S. and Europe is moderating due to high prices and borrowing costs, uneven charging infrastructure, policy uncertainty, and a market short on affordable, mainstream models. At the same time, global EV sales continue to rise, hybrids are surging, and industry standards and incentives are evolving, pointing to a transition that is bumpy, not broken.

The State of EV Demand

Electric vehicles remain on an upward trajectory globally, even as the narrative shifts from breakneck acceleration to a more measured climb. According to the International Energy Agency’s 2024 outlook, roughly 14 million EVs were sold worldwide in 2023, accounting for about 18% of new car sales, with additional growth in early 2024. The U.S. picture is mixed: battery-electric vehicles (BEVs) accounted for roughly 7.6% of new-light vehicle sales in 2023, edging higher in 2024, but inventories rose at many dealers and some automakers slowed rollout plans to match buyer readiness.

Sales Are Growing—Just More Slowly

Several automakers have adjusted EV targets or delayed factory expansions to avoid oversupply. In early 2024, Tesla reported its first year-over-year quarterly delivery decline in years and continued price cuts pressured margins across the segment. Meanwhile, Germany’s abrupt end to EV purchase subsidies in late 2023 dampened early-2024 sales there, illustrating how policy shifts can jolt demand. None of this signals a collapse, but it does show a market moving from early adopters to more price-sensitive mainstream buyers.

Hybrids Are Having a Moment

With interest rates elevated and charging still uneven in many regions, hybrids—especially conventional (non-plug-in) models—have surged. They alleviate range and charging concerns while delivering better fuel economy and lower ownership costs than many gasoline-only cars. Plug-in hybrids (PHEVs) have also gained share, serving as a bridge technology for buyers not yet ready for full battery-electric ownership.

Why Some Shoppers Are Hesitating

The reasons consumers pump the brakes on EV purchases tend to be practical rather than ideological. The following list details key factors dampening near-term demand and shaping buyer behavior.

• Price and financing: Many EVs remain pricier than comparable gas cars. Elevated interest rates since 2022 have made monthly payments a bigger hurdle, even as some models see discounts.
• Charging access and reliability: Public charging has improved but remains inconsistent. J.D. Power has reported that roughly one in five public charging attempts fails—anxiety-inducing for first-time buyers. Home charging isn’t practical for many renters or those without dedicated parking.
• Model mix and affordability: The market is heavy on premium SUVs and pickups. Budget-friendly, compact EVs are scarce—especially after discontinuations such as the Chevrolet Bolt in 2023 (though a next-generation Bolt has been announced).
• Tax credit complexity: U.S. federal tax credits changed in 2024 with stricter battery sourcing rules, reducing the number of eligible models even as a new point-of-sale mechanism makes the credit easier to use at dealerships.
• Dealer readiness: Secret-shopper studies (e.g., by Sierra Club in 2023) found uneven EV availability and knowledge at dealerships, which can deter curious buyers.
• Reliability perceptions: Consumer Reports’ 2023 survey found new EVs had more reported problems, on average, than new gasoline vehicles—largely teething issues in first-generation models. Hybrids, notably, scored very well.
• Cold-weather performance: In freezing temperatures, usable range can drop significantly—often 20–40%—especially when using cabin heat, complicating winter road trips without robust charging options.
• Insurance and repair costs: Some insurers price EV coverage higher due to costly components and limited repair networks; battery-related repairs can be expensive, though long warranties help.
• Resale value uncertainty: Rapid technology change and price cuts have made some buyers wary about depreciation.
• Polarization and misinformation: EVs have become politicized in some markets, and misinformation about safety, battery fires, and grid impacts can shape perceptions more than data.

These barriers are solvable—and many are already improving—but together they make mainstream adoption more gradual than the early enthusiast phase.

What the Data Actually Show

Claims that “no one” wants EVs are contradicted by sales trends and infrastructure progress, even if the hype cycle has cooled. The following points put the market in context.

• Global momentum: EV sales set records again in 2023, led by China, and continued to rise into 2024, according to the IEA.
• U.S. growth from a small base: BEV share in the U.S. rose from near zero a few years ago to roughly the high single digits by 2024, with adoption concentrated in coastal states and metro areas.
• Charging standard convergence: Most major automakers selling in North America have announced adoption of Tesla’s NACS standard, with adapters rolling out in 2024 and native ports expected to arrive on new models beginning in 2025, which should improve access and reliability over time.
• Policy backdrop: California and a group of follower states are on a path toward 100% zero-emission new car sales by 2035. The EU has a similar 2035 timeline (with narrow exceptions), while the UK moved its ban to 2035. In the U.S., EPA finalized more gradual emissions rules in 2024, still pushing automakers toward cleaner fleets but with a smoother ramp.
• Market diversification: Hybrids and PHEVs are expanding choices for buyers, while a wave of more affordable EVs is in development, including models using lower-cost LFP batteries.

Taken together, the evidence points to a transition that is uneven by region and segment but still advancing, with short-term friction points rather than a reversal.

Policy and Industry Shifts

Incentives and Regulations Are Evolving

In the U.S., the Inflation Reduction Act reshaped EV incentives around domestic manufacturing and critical mineral sourcing. As of 2024, some models lost eligibility due to battery content rules, but a new option to transfer the credit at the point of sale effectively turned it into an instant discount—a meaningful simplification. At the same time, federal emissions rules finalized in 2024 chart a slower initial ramp for EVs, reflecting industry capacity constraints while preserving long-term targets.

Charging Standards Are Converging

North American automakers’ move toward the NACS connector—combined with cross-network roaming and reliability commitments—promises a better charging experience. The transition will take time: adapters are a bridge, and native NACS ports are slated to appear on many models beginning in 2025, aligning vehicles with the largest fast-charging network.

What Would Re-accelerate EV Adoption

Consumer surveys consistently point to practical fixes that would pull more buyers off the sidelines. The following priorities are cited by analysts, automakers, and policymakers as the fastest paths to broader uptake.

1. Lower purchase prices: More sub-$35,000 EVs with competitive features, aided by cost-efficient batteries (e.g., LFP) and scale manufacturing.
2. Better financing: Relief on interest rates and creative financing or leasing that passes tax credits directly to consumers.
3. Reliable charging: Corridor buildout, dense urban coverage, and maintenance standards that drive uptime above 97%, with transparent pricing.
4. Apartment and workplace charging: Incentives and building codes to expand shared charging where most drivers park.
5. Model variety that fits mainstream needs: Compact crossovers, minivans, and affordable pickups with 250–300 miles of usable range.
6. Simpler incentives: Clear, stable rules on credit eligibility and easy point-of-sale discounts.
7. Dealer engagement: Training, inventory, and sales processes designed for EV education and test drives.
8. Cold-weather performance improvements: Efficient heat pumps, preconditioning guidance, and realistic range displays.
9. A stronger used-EV market: Certified pre-owned programs, robust warranties, and affordable battery repairs.
10. Public communication: Data-driven messaging on costs, safety, and grid impacts to counter misinformation.

If industry and policymakers execute on these fronts, the next wave of buyers—beyond early adopters—will find EVs more compelling on cost, convenience, and confidence.

The Bottom Line

EV demand hasn’t disappeared; it’s normalizing. The early surge created expectations that were hard to sustain amid high interest rates, patchy charging, and a dearth of low-cost models. Sales are still rising globally, hybrids are flourishing, and the ecosystem—from charging standards to incentives—is maturing. The transition was never going to be linear; the current pause is about matching products and infrastructure to mainstream expectations, not a verdict on the technology.

Summary

Despite headlines, EVs remain on a growth path, though at a slower pace as the market shifts from early adopters to the broader public. Key friction points include price, charging reliability and access, financing costs, dealer readiness, and policy complexity. Global sales continue to climb, hybrids are booming, and standardization around charging plus evolving incentives should ease adoption. The road ahead is uneven but forward-moving.