How the US got left behind in the global electric car race
Key Takeaways
- US electric vehicle sales saw a recent high, driven by buyers claiming a $7,500 government subsidy before its September expiration.
- Carmakers anticipate a significant, 'precipitous' drop in EV demand now that the subsidy is gone.
- The US lags significantly behind major markets like China and Europe in the percentage of electric vehicles sold.
- Slower US adoption is attributed to comparatively weak government support compared to other nations.
- There is political uncertainty regarding future EV support, with differing views between the current administration's goals and opposition efforts to scrap subsidies.
Recent data showed a surge in US electric vehicle sales, topping 1.2 million last year and reaching 10% of total sales in August, a new high for companies like GM, Ford, and Tesla. However, industry executives anticipate this momentum will reverse quickly because the sales spike was largely driven by buyers rushing to utilize a $7,500 federal tax credit that ended in September. This anticipated drop places the US significantly behind global competitors; for instance, EV sales account for nearly half of the market in China and much higher percentages in Europe and the UK. Analysts point to weaker US government support, including fewer subsidies and trade-in programs compared to other regions, as a primary factor slowing adoption. While the Biden administration implemented measures to boost EVs, current political opposition, notably from Donald Trump, threatens to scrap many of these supportive policies, further complicating the US's competitive standing in the global electric car race.
