Enlarge (credit: Getty Images)

Among the many things upended by the pandemic was the traditional American car-buying experience. Factories were idled to safeguard public health, then supply chains broke down and the chip shortage took hold . Dealer inventories dried up, and hefty markups became the norm , causing new car prices to skyrocket. Those days are over, with inventory growing and both new and used prices dropping, particularly for electric vehicles, according to a new study from the digital marketplace cars.com .

Although automakers like Ford and General Motors have scaled back their EV ambitions, with a chorus of complaining car dealers in the background, it looks like increasing numbers of US car buyers are considering going electric.

Searches for new EVs on cars.com were up 14.9 percent year-on-year (14.7 percent month-on-month). And there are many more cars for buyers to pick from, with 107.7 percent more inventory than in March 2023 (or 8.8 percent more than this February). Those EVs are hanging around on lots longer than dealers might like, with an average of 91 days of inventory—the industry prefers to keep less than 60 days of inventory on hand and averaged 65 days for March 2024.

Enlarge / Electric F-150 sales are up 80 percent year over year. (credit: Ford)

Ford has caught a case of electric vehicle pessimism and is scaling back or delaying some of its plans for new EV models. A new electric pickup, scheduled to go into production next year, has been pushed back to 2026. And a three-row electric SUV has been given a two-year delay and will now not be available until 2027 at the earliest. The kicker? The automaker has published its sales for the first quarter of the year, and its EV sales are up a whopping 86 percent year over year.

Instead, the Blue Oval wants to focus on making more hybrids instead, and says it will have hybrid options for all its internal combustion engine-powered vehicles by 2030. Ford's current range of hybrids is not extensive, but it grew 42 percent in Q1 compared to the first three months of 2023.

Many of those—19,660 to be exact—were the Maverick Hybrid, despite the fact that for model year 2024, Ford removed the hybrid powertrain as the base model and effectively gave the electrified pickup a $1,500 price hike. In total, Ford sold 38,421 hybrids in Q1 2024, which it says makes this the best-ever quarter for hybrid sales. But they represent a rather small slice of its overall pie—just 7.6 percent of the 508,083 vehicles that Ford sold for the first three months of the year.

Enlarge / Edmunds surveyed 300 car buyers who were considering a new EV in January 2024. (credit: Getty Images)

There is a significant mismatch between the people who want to buy electric vehicles and the people who want to sell them. That's according to data from a new survey by Edmunds, which polled people shopping for new cars in January. These prospective buyers want affordable sedans and SUVs, segments of the market that are being ignored by automakers. Instead, they're being offered expensive EVs, including plenty of trucks, for which there is little demand.

Almost half (47 percent) of the 300 people surveyed said they want to spend less than $40,000 on a new EV. And just over 1 in 5 (22 percent) said that they don't want to pay more than $30,000. But currently, no new EV is on sale below this price, and only a handful of EVs (Mini Cooper SE, Fiat 500e, Hyundai Kona Electric, Nissan Leaf, and Tesla Model 3) are on sale for less than $40,000.

According to Edmunds' data, the average transaction price of a new EV was $61,702 in 2023, compared to $47,450 for other vehicles.

Enlarge / Hertz currently has more than a thousand Bolt EUVs for sale as they leave its rental car fleet. (credit: Chevrolet)

Electric vehicles have many advantages over cars that still use internal combustion engines. They're far more efficient, they're quieter, and they usually have much more torque than their gasoline-powered equivalents. But we're still far from achieving price parity between powertrains. In other words, EVs are expensive.

One place you can find some bargains, though, is the rental company Hertz, which currently has more than 2,100 EVs for sale, more than half of which are affordable enough to qualify for the IRS used clean vehicle tax credit.

Hertz has been adding a lot of EVs to its fleet as part of the company's decarbonization plan. In 2021 , it revealed plans to purchase 100,000 Teslas. However, the controversial car maker had delivered fewer than half of those two years later, and long repair times for customer-inflicted damage have seen the rental agency divest itself of many of those Tesla and diversify its fleet, adding plenty of Polestars , Kias, and Chevrolets.

Enlarge / Mercedes-Benz's next EV will be the CLA, which makes use of the very efficient powertrain tech we tested in the Vision EQXX concept . (credit: Mercedes-Benz)

Mercedes-Benz is the latest automaker to dial back its electric vehicle ambitions. In 2021, the company published its electrification plan, which called for it to sell only battery EVs from 2030, at least in countries with the infrastructure to support that . Today, Mercedes published its annual results for 2023, and it's clear that the company has little confidence that any region will be ready for EVs-only sales by that date.

Mercedes isn't giving up on EVs, but it now says it only expects electrified vehicles—which include hybrid EVs as well as BEVs—to account for half its overall sales in the second half of this decade. While it says it is taking the necessary steps to go all-electric, it also "plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s."

The change, evidently, has been percolating within Mercedes' board rooms for some time. Last September, CEO Ola Kaellenius warned that even Europe would not be ready for an entirely electric lineup by 2030.

Enlarge (credit: Richard Newstead/Getty Images)

Electric vehicle sales had a pretty good 2023 in North America, with more than 1.1 million battery EVs and just under 300,000 plug-in hybrid EVs finding new homes. That's a 50 percent increase on 2022, yet the last few months have seen the trade and business presses report a string of negative stories about EV adoption. And it's not just news stories—major automakers are scaling back their EV ambitions, and together with auto dealerships, they're lobbying the White House to water down its plan to reduce transportation-related carbon emissions.

While US car buyers are still choosing EVs in greater numbers, the rate of increase is beginning to slow . According to a report from S&P Global, EV registrations grew by 23 percent in December, faster than the general increase in new light vehicle sales (15 percent year over year). But market leaders did not do so well. Tesla only grew sales by 11 percent; at Ford, they rose by 13 percent. Chevrolet saw EV sales drop by 26 percent as it finally exhausted its supply of the low-cost Bolt EV.

Car buyers’ concerns

Similarly, a survey from Deloitte provides a little more pessimism when it comes to EV adoption. It has found that only 6 percent of buyers are now considering a battery EV, down from 7 percent in 2023. Demand for plug-in hybrids has also fallen, from 7 percent in 2023 to 5 percent in 2024. Instead, more buyers want gasoline- or diesel-powered vehicles, a full two-thirds in 2024 compared to 58 percent last year.

Enlarge / Americans love pickup trucks, but most pickup-truck loving Americans are not ready to go electric yet. Meanwhile, there's almost nothing to buy if you want a smaller, cheaper EV. (credit: Ford)

For the last two years, a small "skunkworks" at the Ford Motor Company has been working on a low-cost electric vehicle platform, according to Ford CEO Jim Farley. Farley revealed the existence of this new platform during the automaker's quarterly financial results call with investors on Tuesday evening. The company is rethinking its electrification strategy, having now faced up to the reality that the current crop of EVs are too expensive for mass-market adoption to take off.

Ford was early to market with its Mustang Mach-E crossover, itself the product of a skunkworks-style development process: an internal group called Team Edison , formed to add some excitement to what was originally going to be a more boring compliance car. The team also took the bold step of making a fully electric version of the country's best-selling vehicle, the F-150 pickup truck.

Demand for the electric F-150 Lightning appeared strong, but a series of price hikes has resulted in really expensive trucks languishing on dealer forecourts and Ford cutting production shifts to reduce output. The Mustang Mach-E is still selling, although with barely any growth year on year .

Enlarge / Electric Ford F-150 Lightnings being built at the Rouge Electric Vehicle Center in Dearborn, Michigan. (credit: Ford)

Production cuts are coming to the Ford F-150 Lightning. On Monday, Automotive News reported that Ford's suppliers have been told by the automaker that from January it is halving the production rate from 3,200 trucks a week down to 1,600 trucks a week.

Ford debuted a fully electric version of its best-selling F-150 pickup truck in 2022. You'd be hard-pressed to tell the electric F-150 Lightning from a gas- or diesel-burning F-150—bar some aerodynamic detailing here and there they all use the same body, and the EV hides its batteries neatly between the chassis rails.

That conservatism in design appeared to be a winning strategy with the pickup crowd. Ford's order books were flooded with over 200,000 reservations well before the truck hit the streets, spurring the automaker to announce last January that it would double its original production plan and aim for an annual production rate of 150,000 trucks a year.

Enlarge (credit: Getty Images )

Earlier this week, we learned of an effort by some auto dealers to pump the brakes on the US government's electric vehicle adoption goals . EVs are sitting too long on dealership lots, they say, and the public just isn't ready to switch. Those fears are overblown says JD Power; it says that 29.2 percent of consumers say they're very likely to buy an EV as their next car, a percentage that grew 3 percent last month alone.

That means EV marketshare should grow to 13 percent by the end of 2024, and to 24 percent in 2026, according to JD Power, which it says places the EV market still in the "early adopter" phase. (Current EV market share is about 8 percent.)

But the industry has some work to do if it wants to smoothly transition from those early adopters to the "early majority" phase , and JD Power's advice sounds a lot like what we constantly hear in the comments: build smaller, cheaper EVs.