EV Demand is Much Higher than Existing Supply

EV Demand is Much Higher than Existing Supply

The Tesla Model Y

­Turns out EVs are even more popular than their  top fans could’ve predicted.

According to numerous reports, the demand for EVs outpaces supply by a significant margin.

In 2021, when the demand hadn’t quite surpassed supply, EV sales totaled 6.6 million units globally (8.6% of total vehicle sales), an improvement of 4% year-over-year.

But today, nearly every electric vehicle has at least a few-month wait list, and for some, it’s six months or more.

A friend of mine, who bought a long-range Tesla Model Y in 2021 with no delay, noticed that the same vehicle with the same options (tow hitch and full self driving, amongst other things) won’t be available for another year.

Electric car website Electrek reported that “Many Tesla models are now sold out until 2023.”

Tesla has hiked their prices several times, but even that couldn’t put a dent in demand. Rivian tacked on $12,000 for their flagship EV truck and $14,500 for their SUV, while Ford raised the price of their electric F-150 Lightning by $7,000.

These shortages could put a serious dent in federal EV mandates, and automakers will have to figure it out before their own self-imposed deadlines to go fully electric come about.

The U.S. government has promised to end purchases of gas-powered vehicles by 2035, reducing emissions by 65% in 2030 and achieving net-zero emissions by 2050.

They have an uphill battle — in 2020, a mere 0.5% of the government's 657,000 vehicles were electric. And while sales are climbing across the globe, the steep shortages don’t help.

Ultimately, responsibility will fall upon the automakers, themselves.

"We believe competitiveness in the EV market will be determined by the ability to add capacity across the supply chain and ramp production," Tesla said in last year’s fourth-quarter letter.