Early adopters, mainstream success, buyer's remorse — where is the EV market headed?

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A positive long-term forecast for EV adoption adds a bit of glow to recent news of sales slowdowns that are a challenge to California's climate goals.

The electric vehicle market is steeped in uncertainty. EV sales growth has slowed; automakers are pulling back on EV production; politics around the subject is growing nasty, as the very idea of driving an EV has entered the culture wars. But one analyst says don't fret: “Our long-term outlook for EVs remains bright.' That's according to market researcher BloombergNEF, which released the 2024 version of its annual electric vehicle outlook report on Wednesday.

BloombergNEF’s findings are echoed by consulting firm McKinsey and the AAA motor club, in recent forecasts of their own. But EV prices are coming down, range is improving, and large numbers of public chargers are being installed, all of which could revive sales growth. Consumers around the planet are warming to the idea of buying an electric car, but they’re moving slowly. According to McKinsey, 14% of 30,000 global survey respondents in 2021 said their next vehicle would be an EV.

 

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