Why the Biden Administration Isn't Concerned About Reports of Slowing EV Sales

Recent news reports say the growth of electric vehicle adoption is slowing, but the Biden administration isn't worried. 

Automakers dialed back their EV production goals. EVs reportedly piled up at dealerships. Tesla, the US electric vehicle sales leader, delayed construction on a factory for the North American market.

Some take it all as a sign that Americans aren't ready for widespread EV adoption. US Energy Secretary Jennifer Granholm isn't one of them.

In my recent interview with Granholm, she instead touted record-setting electric vehicle sales -- 1.4 million in 2023 -- as a sign that the industry was strong. Granholm sought to recast the critics' narrative, highlighting strong EV sales and hopes for 2024's EV charger buildout.

Are reports of slowing EV sales a warning sign?

Inventories of electric vehicles were building up at dealerships toward the end of 2023 as manufacturers overestimated demand for their vehicles. At the same time, demand grew. That's according to an October report from CarGurus, a car research and shopping site.

Manufacturers have been walking back some of their near-term commitments and goals for EV sales. Ford said it would cut production of its F-150 Lightning by about half in 2024. GM said it still had the goal of making a million EVs by the end of 2025, but was ditching a shorter-term goal of 400,000 by the middle of 2024. 

Still, plug-in electric vehicles made up 10% of car sales in December 2023, Granholm told me. (That data, from the Argonne National Laboratory includes plug-in hybrid vehicles. Nonhybrid electric vehicles were 9% of sales across 2023.)

According to Granholm, those figures are thanks to strong December sales numbers. "Just a huge number. More than people anticipated," she said.

Ford reported that its EV sales rose 18% in 2023 compared to 2022. GM reported that the fourth quarter of 2023 was its sixth consecutive quarter with increasing EV sales. Tesla said it delivered 1.81 million vehicles in 2023, 38% more than last year (although some of those Tesla vehicles may have been purchased before 2023).

According to a report by industry analysts at Cox Automotive, EVs made up 7% of sales in 2024 (although they topped 8% in the final quarter of 2023), with hybrid vehicles making up another 9%. In the report, Cox projects EVs will represent 15% by 2025.

Public charging challenges are becoming a thing of the past 

Reports that range anxiety and lack of public charging options are keeping people from taking the electric vehicle plunge aren't difficult to find, but the charging landscape may be changing in 2024, too.

According to Granholm, there were 170,000 publicly available charging stations at the end of 2023 with 900 new ones being added each week. 2024 will also see the EV charging landscape start to homogenize, as most manufacturers have adopted a uniform charging standard in 2023, CNET's EV editor Antuan Goodwin writes. That could remove a mental barrier to EV adoption.

The United States' charging network is expected to get more robust, as well. Money from the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, was specifically earmarked for constructing more charging ports. President Joe Biden's goal of 500,000 publicly available charging stations by 2030 is within reach, Granholm said.

"We think we're going to get there by 2026. There's going to be about 1.2 million by 2030," she said.

The places where today's public charging infrastructure falls shortest and will benefit the most from this investment are rural and urban areas, poorer regions and multifamily dwellings, Granholm said.

Watch this: What's Next for EVs in 2024

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Advice for the EV-curious 

When it comes down to it, purchasing a car is a personal choice and a big transaction. The news and sales trends can feel like an affirmation or denial of EVs' viability today.

In fact, an oversupply of EVs might make it a good time to buy if it drives prices down. The EV tax credit became an upfront discount in 2024. You won't need to wait till next year to get your discount back on your taxes. 

If you're EV-curious, here are a few practical tips to test the waters.

Audit your driving

If range anxiety is holding you back, a reality check on how much you're actually driving might be useful. You might find that you don't need the longest-range EV -- or, you might find that you do.

Explore a route planner

EV route planners -- like a souped-up Google Maps -- can take the guesswork out of planning a longer trip. As one example, A Better Route Planner takes into account your car and its battery and plots our potential routes for longer trips with details on where and how long to charge.

Explore all your charging options

What's lost in all the talk about public charging infrastructure is that a lot of charging can be done at home. While apartment building residents or people who only have access to street parking will likely rely on public chargers, many others will be able to charge at home. They might even find they can get by with the included level 1 charger, which requires no electrical work (as long as you have a grounded outlet).

Rent an EV

Renting an EV gives you first-hand experience with one. It can also let you dip a toe in by just using it around town for a weekend before you jump in with both feet.

Talk to other EV owners

Talking to your friends or neighbors who own EVs is one way to get first-hand information from someone who's not trying to sell you something. As with any major purchase, it pays to shop around and do your research. CNET has a list of the best EVs to get you started.