An auto industry consulting group is predicting that electric vehicle sales will break a U.S. record in the third quarter of this year, largely due to the expiration of the $7,500 federal tax credit at the end of September.
Stephanie Valdez Streaty is director of industry insights for Cox Automotive. "There's this sense of urgency," she said. "And I think dealers and manufacturers are taking advantage of this time to really create this sense of urgency and also offering some amazing deals to consumers. So from a consumer's perspective, it's, if you're thinking about an EV, now's the time to get one."
Valdez Streaty said after September, U.S. automakers will have to work extremely hard to catch up to China, which has dramatically reduced the price of its electric vehicles.
"The biggest challenge or barrier to EV adoption is price. And we need not just one [model type] but we need many options for consumers, especially as we're moving from early adopters to mainstream."
She said Chinese car manufacturers are swiftly becoming the dominant sellers of electric vehicles in many countries around the world, because they have managed to bring down the cost so effectively.
In China, Valdez Streaty noted, about half the electric vehicles sold cost less than comparable gas-powered models.
China has been unable to break into the protected U.S. market, due to high tariffs (currently 100% on Chinese EVs), lack of a U.S. dealer and distribution network, and concerns over national security and trade policy.
When it comes to the overall U.S. sales market, Valdez Streaty said there are no clear signs yet that tariffs are raising prices.
