Why the US Is Struggling to Keep Up in the Electric Car Race

The United States has seen a big increase in electric car sales over the past few years, but it is still falling behind other countries in the global race for electric vehicles. Last year, Americans bought more than 1. 2 million electric cars, which is five times more than they did just four years ago. Hybrid car sales have also tripled. In August, electric cars made up 10 percent of all car sales, which is a new record. Major car companies like General Motors, Ford, and Tesla all reported their best-ever electric car sales in the last three months. This is a bright spot for the car industry, which has been struggling with high interest rates and people worried about inflation and the economy.

However, experts say that much of this recent growth was because people wanted to buy electric cars before a government tax credit ended. This tax credit could save buyers up to $7,500 on certain electric and hybrid cars, but it ended in September. Now, car companies expect that fewer people will buy electric cars. Ford's CEO said the electric car market will be much smaller than they had hoped. General Motors' chief financial officer said he expects demand for electric cars to drop quickly, and it will take time for buyers to return. Even with these gains, the US is still behind other countries. In the UK, almost 30 percent of new cars sold last year were electric or hybrid. In Europe, about one in five cars sold is electric or hybrid. In China, the world's largest car market, almost half of all cars sold last year were electric or hybrid, and this year it could be even more. Some countries, like Norway and Nepal, have even higher rates of electric car sales.

One reason the US is behind is because the government has not supported electric cars as much as other countries. In places like China and Europe, there are more subsidies and programs to help people buy electric cars. President Joe Biden tried to boost electric car sales by making new rules, spending money on charging stations, and expanding the tax credit. He wanted half of all cars sold in the US to be electric by 2030. But former President Donald Trump tried to end many of these programs, saying people should not be forced to buy electric cars. Electric cars have become cheaper in the US, but they still cost more than regular cars. The average electric car costs over $57,000, which is about 16 percent more than the average car. Some companies, like Hyundai, are lowering prices to help buyers, but others, like Tesla, are raising lease prices. Experts say the next year will be tough for electric car sales because of new tariffs and the end of the tax credit. Some car companies are already spending less on electric cars, and experts say the US has a lot of catching up to do. Still, some people think it is too early to say if electric cars are the only answer for the future.