While electric vehicles may be the brave new world which the automotive industry is heading in, gearheads around the world are crying out in protest – with their wallets and an aversion to purchasing EVs. One of the biggest indicators of this is the United States’ Department of Treasury releasing final regulations for the clean vehicle tax credits for electric vehicles in early May 2024. The regulations provide for as much as $7,500 in up-front discounts for eligible vehicles, although there are a number of criteria that need to be met first, and over $135 million in EV rebates have been paid over to dealers since the start of the year.
Despite this, numerous automakers have slashed prices of their electric vehicles recently. Could this be an indicator that Americans aren’t responding as well to the EV trend?
Have Your Say
Discussion: Why are electric cars getting such bad press?
This is something of a politically charged question, but much of the criticism comes from how the materials used in the batteries are sourced. This is improving, thought it’s still far from perfect. There’s also concern that although they don’t create emissions, they charge from sources that do. It really depends where you get electricity on that front, but those sources of power are also becoming more environmentally friendly. Why do you think people are against EVs?
Automakers Are Making EVs Cheaper
Mercedes-Benz serves as one of the best examples of this, offering a $20,000 dollar discount on its EQS SUV last year, cutting the price to around $105,000. This works out to a roughly 19% discount, which is before taking into account any other potential rebates, discounts, negotiations, or tax cuts for the vehicle. This is also alongside other attempts it’s made to pull buyers from rival brands to its dealerships. It’s especially telling that even Mercedes-Benz, a luxury brand which will go out of its way to avoid devaluation of its products, is slashing EV prices so tremendously due to lack of interest from American consumers.
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Tesla Cuts Prices To Combat Declining EV Sales
Electric vehicle giant Tesla isn’t immune to plummeting EV sales and the rise of Chinese imports and, in response, is cutting prices across the board.
Similarly, all-American Tesla has done the same, cutting prices across its lineup in 2023 and 2024, despite it’s cars being some of the best-selling vehicles globally. In Q1 of 2024, global sales dropped by 8.5%, although some would argue that that’s a result of outdated models in the Tesla lineup. Even BMW has offered a $5,000 purchase incentive on new i4 and i5 models.
This then begs the question: why are Americans so averse to purchasing EVs? We know that for enthusiasts, one of those reasons is the lack of focus on recreating the high-decibel purrs American automobiles are known for, with almost every manufacturer abandoning this pursuit save for a few. There’s also the fact that charging stations, especially in the Midwest, aren’t nearly as bountiful as they should be in order to make EVs a truly viable alternative nationwide. Sure, there are maintenance-related reasons as well, but even beyond these general critiques, the origins of American automotive culture and the very core of the nation’s societal philosophy also explain why Americans aren’t quite on board with EVs yet.
EVs In Their Current Form Are Inherently Un-American
It’s no secret that American societal philosophy is an individualistic one rather than a collective one. Essentially, this boils down to the idea that it’s okay for an individual to prioritize themselves and their own needs or wants above those of society. Whether this is right or wrong in the grand scheme of things is a debate for another time, but it is relevant for why Americans are pushing back against EVs. By their inherent nature, electric vehicles are being created and marketed with a greener, more environmentally-friendly future in mind. This asks prospective purchasers to think beyond their own needs and wants to consider not just contemporary societal needs, standards, and benefits – but those of future generations as well.
American automotive culture is also very unique, with roots in post-World War II hotrodding. Inherently, hotrodding culture was about returning veterans of the Second World War trying to find a way to reintegrate themselves into larger society while also making use of the skills that had been drilled into them throughout wartime. Hotrodding culture is inherently individualistic, as it was generally all about modifications you could make to your own personal vehicle that’s in your particular taste. In other words, even the origins of America’s contemporary automotive culture are rooted in individualism, further compounding with its societal philosophies outside the world of cars.
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The People Have Spoken, And Electric Vehicles Can’t Be Muscle Cars
According to a study, 56% of Americans don’t think the Dodge Charger Daytona is a “real” muscle car.
There’s also something to be said for the more modern automotive cultures, including the birth and rise of the muscle car and the powerful combustion engines that made them so beloved – all of which is in direct contrast to the look, feel, and sound of EVs. That hasn’t stopped automakers from trying though, with the Dodge Charger Daytona recently introduced as the US’s first all-electric muscle car.
Car-Makers Are Responsible, Too
Automakers putting out EVs aren’t helping the cause, however. The automotive world comprises two types of customers: the first group who want simple, unfussy commuting, and the second, who see vehicles as evocative works of art that add value to life. It’s the second group automakers are entirely ignoring when putting out EVs that cost a fortune and give very little in return. The Mercedes-Benz EQS is a good example, where one of the biggest issues is pricing, starting at $105,500 and ranging all the way up to $136,200. That’s not pocket change. And that base price tag does not give purchasers all-wheel drive, forcing them to go up roughly $3,000 to the 4Matic Premium trim if they need more traction.
Admittedly, the Merc EQS isn’t an off-roader, so the standard features list includes such features as adaptive air suspension and rear-axle steering. But in our experience behind the wheel of the EQS, the driving experience is unsatisfying. Many consumers expect EVs to be the best a brand has to offer, and in this case, many independent testers – and likely potential buyers, too – would rather buy the gas-powered equivalent.
Expert Opinion
…this is one of the few EVs on the market that we don’t prefer over its gasoline equivalent….The EQS SUV is not a firm, uncomfortable vehicle with a harsh ride, but its road manners are unbefitting of its price tag. The standard air suspension does an admirable job smoothing out rough payment, but it seems ill-equipped to handle large bumps and dips in the road.
Mercedes-Benz also fell into the trap of trying to make the EQS SUV feel like a futuristic, off-world spaceship, made evident by many reviewers bemoaning the lack of physical switches in the vehicle on the whole. Tie that in with unappetizing ‘futuristic’ exterior design, and EVs seem entirely unappealing to a customer base that want to feel something about the cars they drive. While some of these reasons apply to EVs in general – and to other automakers – it does help us understand why Mercedes seems to be having some trouble moving its EVs.
Japanese EVs Also Fail To Create A Spark In American Markets
Yet it’s clearly not an issue of luxury causing Mercedes-Benz’s EQS SUV sales to slump, as even Nissan is slashing prices on their relatively entry-level electric vehicle offerings. In fact, it’s slashing prices by nearly a third, as evidenced by the $39,500 MSRP Nissan Ariya Engage being discounted by up to $13,000 on a 24-month lease (with other lease periods seeing similar discounts). This falls in line with recent reports that Nissan has been encouraging dealers to sell well below the vehicle’s cost in order to clear showroom floors. The Ariya’s dramatic price cut can also be attributed to inherent EV problems and model-specific ones, like the EQS.
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Nissan Wants Dealers To Sell New Cars At 15% Below Invoice To Shift Inventory
It’s certainly an attractive way to drum up sales, but Nissan dealers aren’t too pleased with the strategy.
Although there aren’t too many disappointments in drive and handling – mostly as expectations from a Nissan EV aren’t based on a desire for thrills or blistering performance – the Nissan’s electric range and charging times leave a lot to be desired. Maximum range is just over 300 miles and charging can take up to 14 hours – both issues that are inconvenient and will likely cause anxiety for prospective buyers.
Manufacturers Are Responding In Various Ways
EV sales were up 11.3% in Q2 of 2024, according to Kelley Blue Book. That seems to counter the idea that EVs are being passed up by buyers, but we have to take the incentives mentioned above into account that have played a role in this. The other side of the coin, however, is that manufacturers cannot sustain offering such massive discounts consistently, and together with the fact that demand for EVs isn’t substantially increasing, many automakers have backed out of their EV plans.
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All The Automakers That Have Backpedaled Or Pushed Back EV Production
A lot has changed in the last few years with many big name brands changing trajectory.
Ford has pulled back on its $12 billion European EV plan after confirming a loss of over $2.5 billion just six months into the year, and also delayed its alleged three-row electric SUV from 2025 to 2027. General Motors joins its fellow all-American brand by announcing plans to slash its EV forecast by half-a-million units, serving as a fitting end to their tumultuous toe-dipping into the green market. Mercedes-Benz and Porsche join Aston Martin as sports-luxury automakers pulling back EV plans, with both clearly rethinking how soon and how quickly they want to convert to all-electric fleets.
However, the news isn’t all bad, with brands like Honda, Jaguar, and Range Rover all seemingly staying the course despite their peers jumping ship. Regardless of each manufacturer’s exact stance, however, it’s clear that the EV market is not as profitable, prosperous, or preferable for consumers as boardrooms and shareholders were hoping.
How To Fix EV’s America Problem…
It’s clear that electric vehicles have an America problem; automakers will have to work hard to win over customers in the US, and one of the ways in which they can do so is to improve driving feel. Pure performance is easier to pin down, since many mainstream EVs are putting out massive numbers (the Lucid Air, case in point, makes up to 819 horsepower in Grand Touring guise), but building an exciting drive into an electric car takes intentional design. Some manufacturers do an excellent job of keeping the thrill alive, and having more consumers behind the wheel of cars that are actually enjoyable to drive will help the EV cause: the Hyundai Ioniq 5 N is an excellent example of this.
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Taking on Laguna Seca Raceway in an electric crossover? Hell yeah.
In a similar way, EV makers don’t always seem to care about retaining or improving on the spirit of ICE vehicles that preceded them – whether that’s in terms of looks or special capabilities, like off-roading – instead trying to push in a radical new direction. Jeep’s Wagoneer S serves as a fantastic example of the success such an approach can yield. It carries over classic Jeep looks, and even improves upon the performance of its most distinguished predecessors in some areas, such as beating out the now-defunct 2022 Trackhawk’s 0-60 time by a tenth of a second. With the Wagoneer S also being lauded by consumers and industry experts alike, it seems Jeep has the right idea when it comes merging EVs and some parts of American culture.
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…On The Long Road Ahead
The road ahead for EVs is an interesting one, and automakers will have to adjust trajectories to take into consideration why Americans aren’t just falling in with the EV trend. As with all things relating to technology, the more EVs become mainstream – and that means more affordable, more accessible, and easier to live with – the more the masses will buy into it. But beyond this, there is a philosophical issue which must be tackled, showing the average American consumer that switching to EV isn’t just something that benefits the group at large, but them as an individual. While price cuts and tax rebates are a great first step here, the way in which EVs are marketed is also something that needs to be considered.
Sources:
Electrek
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Kelley Blue Book
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