U.S. electric vehicle sales posted a rare decline in April, falling by roughly 5% even as the broader auto market grew by double digits, according to new data from Motor Intelligence.
The drop, only the third monthly decline in EV sales since 2021, was felt across nearly all major brands, according to Motor Intelligence data obtained by The Wall Street Journal.
Tesla, which historically accounts for around half of EV sales in the country, saw its U.S. sales sink nearly 13% last month, the outlet reported. Sales of Rivian’s flagship electric pickup and SUV were slashed in half, prompting the company to lower its 2025 forecast by 5,000 units. Other manufacturers, including Ford, Hyundai, and Kia, also posted losses.
“The challenge is consumers are more price-sensitive than they typically have been and are looking for lower-price alternatives,” RJ Scaringe, CEO of Rivian, said in an earnings call Tuesday, according to Investing.com.
The sudden halt to the EV boom throws cold water on years of bullish industry forecasts and government-backed electrification targets. Carmakers had leaned heavily on subsidies, tax credits, and promotional discounts to buoy sales — tools they’ve now largely withdrawn, according to the outlet. Meanwhile, price-sensitive consumers appear to be hitting their limit. Rivian’s CEO warned buyers are “looking for lower-price alternatives” as inflation, interest rates, and real-world charging frustrations take their toll.
While the Biden administration invested billions to promote EV manufacturing, the pivot under President Donald Trump has seen incentives pared back and foreign manufacturing penalized, particularly vehicles or parts sourced from China.
In contrast, sales of traditional gas-powered vehicles rose 10% in April, the outlet reported. Dealers reported growing inventories of unsold EVs, reflecting slower consumer uptake following years of high demand. Mickey Anderson, who runs the Baxter Auto Group dealership chain in Nebraska, Kansas, and Colorado, said past EV demand was artificially inflated by discounts.
“I think the natural demand is probably half that,” he told the Journal.
All republished articles must include our logo, our reporter’s byline, and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.
DONATE TO BIZPAC REVIEW
Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. Thank you for partnering with us to maintain fruitful conversation.
BPR INSIDER COMMENTS
Scroll down for non-member comments or join our insider conversations by becoming a member. We'd love to have you!
