Subsidies disappear, political concerns rise... Americans are "not buying" electric vehicles anymore

The outlook for subsidies is unclear, coupled with falling oil prices, and American electric vehicle purchasing intentions have dropped to a six-year low.

According to the latest survey report released by AAA, the proportion of American adults who said they are "very likely" or "likely" to purchase a pure electric vehicle as their next car has plummeted from 25% in 2022 to 16% this year, marking the lowest record since AAA's annual survey began in 2019. Meanwhile, the percentage of consumers who said they are "unlikely" or "very unlikely" to purchase an electric vehicle surged from 51% last year to 63%.

Behind this drastic shift, traditional barriers remain entrenched: 62% of respondents are concerned about high battery repair costs, and 59% are deterred by high purchase prices. Other major concerns include the unsuitability of electric vehicles for long-distance travel (57%), insufficient convenience of public charging stations (56%), and fear of running out of power while driving (55%).

Greg Brannon, AAA's Director of Automotive Engineering, stated:

"Despite the automotive industry's commitment to long-term electrification and providing a diverse range of vehicle options, fundamental consumer hesitancy persists."

The unclear outlook for subsidies combined with falling oil prices has led to a cliff-like drop in American electric vehicle purchasing intentions.

A key change that occurred this spring is that gasoline prices have fallen to their lowest level in four years. Oil prices, as the biggest driver of gasoline prices, have hovered around the low of over $60 per barrel for weeks, and the traditional seasonal price surge in spring has not materialized.

This price advantage directly impacts the core selling point of electric vehicles. The survey shows that 74% of Americans who might purchase an electric vehicle cite saving on gasoline costs as their primary motivation. However, when this economic incentive is significantly weakened, the appeal of electric vehicles naturally declines.

More concerning is that the uncertainty surrounding electric vehicle purchase incentives is beginning to play a larger role. Interest in purchasing electric vehicles using tax credits and subsidies has plummeted from 60% last year to 39% this year. Among them, 12% of respondents explicitly expressed concern that tax credits and subsidies would be reduced or eliminated.

This policy anxiety is reshaping Americans' expectations for the future of electric vehicles. The proportion of American drivers who believe that most passenger cars will be electrified within ten years has dropped from 40% in 2022 to 23% this year.

Hybrid models become the "pragmatic" choice

In the face of various barriers to pure electric vehicles, hybrid and plug-in hybrid models are gaining more favor.

AAA points out that for many drivers, these models combine the advantages of traditional internal combustion engines and electricity, providing an environmentally friendly alternative while reducing range anxiety, making them potentially more attractive than pure electric vehicles.

Despite the launch of over 75 electric vehicle models in the U.S. market over the past four years, with many traditional automakers striving to compete with Tesla, American consumers remain hesitant to purchase electric vehicles. **AAA states that despite the surge in electric vehicle model supply, public perception of the future of electric vehicles remains filled with uncertainty **