Electric vehicles (EVs) are facing significant challenges in achieving profitability and gaining widespread public support, according to recent expert analyses. The Bank of America’s Car Wars 2024 report indicates that EVs and hybrid cars are expected to comprise only 60% of 2025-2028 vehicle models, which is less than previously anticipated. Rising production costs are a major hurdle for automakers other than Tesla, further complicating the competitive landscape. John Murphey, a senior automotive analyst at Bank of America Securities, emphasized the substantial effort required by traditional automakers to reduce EV costs and stay competitive.
Consumer reluctance also poses a significant barrier to EV adoption. The latest American Automobile Association (AAA) survey revealed that 63% of adults are unlikely or very unlikely to purchase a fully electric vehicle, an increase from the previous year. Conversely, only 18% of respondents expressed a likelihood of buying an EV, a decline from 23% last year. In response to these challenges, Rep. Andy Ogles introduced the “Free Market Drives Itself Act” to eliminate the Electric Vehicles Working Group, aiming to curb government spending on EV initiatives and criticize the Biden Administration’s push for green transportation solutions.
