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Electric vehicle sales have slowed, following 13 straight quarters of increases

2023 Rivian R1S SUV
2023 Rivian R1S SUV

Electric vehicle sales slowed in the first quarter of 2024, compared to the last quarter of 2023, according to Cox Automotive.

But the decline comes after 13 consecutive quarters of increases in EV sales since mid 2020.

The auto industry research firm said EV sales rose 15% from the first quarter of 2023 to the first quarter of 2024, a slower pace of growth than the year before.

But Cox Automotive's Stephanie Valdez Streaty says if Tesla is taken out of the picture, EV sales rose 33% year over year.

"Looking at the data, the EV slowdown is shaping up to be a Tesla slowdown," she said.

Valdez Streaty said EVs in general are also facing more competition from hybrids.

"With a technology transition of this magnitude, we can expect to see both slowdowns and accelerations in growth rates" for EVs, she said.

She noted the price gap between EVs and gas powered cars has dramatically narrowed. In March, 2023, the average new EV cost about $15,000 more than the average gas-powered new car; by the end of the first quarter, 2024, that gap had narrowed to about $5,300.

That's due in part to excess inventories on dealer lots right now, leading to more discounts and incentives.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Public. She began her career at Michigan Public as an intern, where she was promptly “bitten by the radio bug,” and never recovered.
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