Are EV sales really slowing down?

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Aug 02, 2023 View in browser   By Arianna Skibell Presented by Chevron An electric vehicle charges at an Electrify America station. | Electrify America Electric vehicles aren’t exactly selling like hotcakes. In fact, they’re languishing at dealerships twice as long as gasoline-powered cars, analysts at Cox Automotive found. That was red meat for former President Donald Trump’s campaign to take back the White House and reverse the Biden administration’s efforts to boost electric cars and trucks. But the report's finding may not actually foreshadow an EV slowdown, writes David Ferris. “It’s not a surprise that we go through ebbs and flows as we start to match supply with demand,” Nick Nigro, the founder of Atlas Public Policy, an EV analysis group, told David. “I don’t think it’s anything like a cause for concern in the strength of the EV market.” In fact, EVs overall are doing rather well, with sales projected to surpass 1 million this year — more than twice the number sold in 2021. Last year, total U.S. vehicle sales dropped by 8 percent, while the market for electric cars grew by 65 percent. What gives? One reason electric cars and trucks are sitting for longer in dealerships’ lots is price. EVs are more expensive than gas cars, and current offerings for different models are limited. Another factor is a market in transition. Early adopters aside, many customers are excited about the possibility of EVs, but aren’t quite ready to take the plunge. A June report from Cox Automotive found a huge gap between people who want electric cars and those who are buying them. Over 50 percent of drivers polled were considering buying an EV, while total electric sales made up less than 8 percent of the market share. But with lower prices and a wider range of vehicles coming, that may be about to change, analysts say. Later this year, a slate of larger and more family-oriented EVs are due to come online, from the Chevrolet Equinox to the Kia EV9. Companies are also spending billions of dollars to knit together a national network of EV chargers to ease drivers’ range anxiety.   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.   A message from Chevron: At Chevron, we know carbon capture and storage is critical in helping enable progress toward global net zero. That’s why we’re developing and deploying the technology in our facilities while also working with partners to scale it to other industries, like cement and steel.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Sara Schonhardt breaks down how the U.S. is trying to negotiate with Mongolia and other nations to secure the critical minerals that are needed for clean energy projects.   A message from Chevron:   Power Centers President Joe Biden speaks as a nature scene is projected behind him. | Patrick Semansky/AP Photo Adding up nature's $$ benefits The White House is asking federal agencies to consider how ecosystems and natural resources benefit the public before they approve projects or write regulations, writes Jean Chemnick. “Pollinators help grow our food. Healthy forests reduce wildfire risk and improve air quality,” White House officials said in a blog post. “Wetlands help to manage flood risks and provide habitat for fish and wildlife that support an outdoor recreation economy.” Italy in public vs. private On the world stage, Italy’s Prime Minister Giorgia Meloni talks up the dangers of climate change. But at home, even in the face of record heat, fires and floods, her government is far from convinced, write Elena Giordano and Karl Mathiesen. "It’s hot, yes, without a doubt. In summer it’s hot, in winter it’s cold,” Transport Minister Matteo Salvini said Sunday in response to a question about mounting climate anxiety among young people. In Other News Explainer: Why the Federal Emergency Management Agency doesn’t respond to heat waves. Branching out: Republicans want to plant a trillion trees. Scientists are skeptical.   HITTING YOUR INBOX AUGUST 14—CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now to California Climate to keep up with the changes.     Subscriber Zone A showcase of some of our best subscriber content. A surfer rides a wave in San Diego. California waves are getting bigger as climate change makes the Pacific Ocean stormier. | Gregory Bull/AP Photo California beaches are a destination for surfers worldwide. But the state's gnarly waves are growing bigger — and potentially more dangerous — as temperatures rise. Biden's climate law might speed up coal's decline and boost carbon capture projects, but it won't come close to keeping the United States on track with Paris climate goals. The Energy Department unveiled its final list of "critical materials," a determination that could shape how the agency spends billions of dollars to thwart climate change. That's it for today, folks! Thanks for reading.   YOUR TICKET INSIDE THE GOLDEN STATE POLITICAL ARENA: California Playbook delivers the latest intel, buzzy scoops and exclusive coverage from Sacramento and Los Angeles to Silicon Valley and across the state. Don't miss out on the daily must-read for political aficionados and professionals with an outsized interest in California politics, policy and power. Subscribe today.       A message from Chevron: By 2030, our target is to reach 25 million tonnes of CO2 per year in storage and offsets, the equivalent to the emissions of 3.1 million homes annual energy use. Part of that effort is our proposed Eastridge CCS project in the San Joaquin Valley, which is projected to capture up to 300,000 metric tonnes of CO2 per year. And through our partnership with Svante, we’re working to reduce the cost of carbon capture and help scale the technology. Moving toward a lower carbon future by developing and deploying carbon capture and storage solutions, that’s energy in progress.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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