Trends around electric vehicle (EV) adoption remain positive despite a stall in demand, according to a new survey carried out in partnership between Wedbush and analytics strategy consultants GBK Collective.
Of 2,000 consumers surveyed, 50% of respondents said they are considering a green vehicle when looking at their next vehicle purchase with overall cost as their priority.
Current EV owners are considering battery replacement costs, driving distance, timing charge, availability or charging, and initial vehicle costs when purchasing.
“To our expectations, many results from the survey were generally positive. That said, there clearly is a stalling of some demand and buying patterns in the EV industry with OEMs of all shapes and sizes flooding the EV market going after Tesla with price cuts still abound,” the Wedbush analysts wrote in a note to clients.
The analysts wrote that there was naturally a major debate going on among both investors and the auto industry around EV adoption, tax incentives, and the long-term strategy for a more competitive EV landscape to encourage consumers to convert to EVs.
“With the EV industry set to grow at a 15.5% compound annual growth rate through 2032, we believe this is the bumpy turning point in this auto transformation as new affordable models hit the road over the next few years that meet growing consumer demands,” they wrote.
“We believe the current climate is still favorable for automakers going aggressive on EVs, although clearly competition is growing and a more knowledgeable EV consumer is emerging as highlighted in this survey.”
The analysts said the survey showed that the US EV market was currently characterized by Tesla Inc (NASDAQ:TSLA)'s dominance, while traditional automakers have made significant investments in EVs which will accelerate their adoption.
“While the majority of individuals have not yet purchased a clean energy vehicle, the next wave of EV prospective consumers are ready to start purchasing EV vehicles that meet all needs and preferences although this EV buying cycle will clearly be a tougher and longer evolution as it plays out in the market,” they wrote.
“Thus, OEMs are going to have to navigate a shifting landscape where EVs must further cater to consumer needs to continue the ongoing adoption of EVs over the coming years.”