{"id":47903,"date":"2023-04-20T18:35:52","date_gmt":"2023-04-20T22:35:52","guid":{"rendered":"http:\/\/autosector.com\/?p=47903"},"modified":"2023-04-20T18:35:52","modified_gmt":"2023-04-20T22:35:52","slug":"surging-ev-demand-causing-states-pause-incentives","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=47903","title":{"rendered":"Surging electric vehicle demand causing states to pump the brakes on EV incentives"},"content":{"rendered":"
\n\t\t\"EV-demand-state-incentives-1\"<\/p>\n<\/figure>\n

US car buyers are going electric at a record pace. The overwhelming demand is causing some states to temporarily pause EV incentives designed to promote adoption.<\/p>\n

<\/p>\n

Despite overall auto sales falling, electric vehicles were a bright spot in the industry last year. According to data from Cox Automotive<\/a>, total US auto sales fell 8% year-over-year (YoY) from 2021, but EV sales climbed 65%, passing 800,000 in volume for the first time.<\/p>\n

The trend is not slowing this year either. The latest data<\/a> shows EV sales broke another record in Q1, surpassing 250,000 and claiming over 7% of total US auto sales.<\/p>\n

There are several reasons for the rising demand for EVs \u2013 for one, more availability. Tesla continues to churn out a record number of electric vehicles, producing over 440,000 units<\/a> (up 44% YoY) in the first three months of 2023.<\/p>\n

Perhaps more importantly, a slew of new EVs are becoming more widely available, hitting all the market sweet spots like electric trucks (Ford F-150 Lightning and Rivian R1T), electric SUVs\/crossovers (Ford Mustang Mach-E, Hyundai IONIQ 5, Volkswagen ID.4), and lower cost options (Chevy Bolt EV starting at $26,500).<\/p>\n

\"EV-demand-state-incentives\"
Light duty electric vehicle sales (Energy.gov\/Argonne National Lab)<\/figcaption><\/figure>\n

Federal incentives, such as the EV tax credit extension from the Inflation Reduction Act<\/a>, provide up to $7,500 for new buyers and $4,000 for used.<\/p>\n

States and several utility companies offer additional incentives<\/a>, ranging from a few hundred dollars up to several thousand (most are in the $1,500 to $3,000 range).<\/p>\n

However, with customers flocking to electric vehicles, several states are becoming overwhelmed, causing them to pause the programs.<\/p>\n

States pause incentives as EV demand rises<\/h2>\n

According to an AP News<\/em> post<\/a> this week, New Jersey has become the latest state to temporarily suspend its rebate program after running out of money due to its popularity.<\/p>\n

The state\u2019s \u201cCharge Up New Jersey\u201d program gives residents up to $4,000 in incentives to purchase or lease a new electric vehicle.<\/p>\n

Charge Up New Jersey stopped accepting new applications for EV rebates on April 17 after dishing out roughly $35 million for the fiscal year that ends in July.<\/p>\n

The board said it was pausing the program as it distributed funding based on the current rate of application approvals. According to New Jersey utility board estimates, the $35 million in funding will be used to support the purchase or lease of over 10,000 EVs this fiscal year.<\/p>\n

Since launching nearly three years ago, the program has supported the adoption of over 25,000 EVs by providing over $90 million in funding.<\/p>\n

New Jersey is among several states offering EV incentives that are seeing overwhelming demand. For example, Oregon is also pausing a popular rebate program due to more buyers going electric than expected.<\/p>\n

The Oregon Department of Environmental Quality announced in March<\/a> it would temporarily suspend its EV incentive program. Oregon\u2019s Clean Vehicle Rebate program started in 2018, providing up to $7,500 for qualified households. DEQ\u2019s senior advisor Rachel Sakata said:<\/p>\n

\n

Unfortunately, we\u2019ve become a victim of our own success and we\u2019re running out of money.<\/p>\n<\/blockquote>\n

Electrek\u2019s Take<\/h2>\n

Demand for fully electric vehicles is only predicted to continue climbing from here. Analysts are forecasting EV sales will surpass 1 million for the first time in 2023.<\/p>\n

With 250,000 electric vehicle sales in Q1, the US is well on its way toward 1 million EV sales this year.<\/p>\n

We\u2019ve been saying for a long time that EV adoption will happen quicker than most have predicted. Demand is already taking several states by surprise, causing them to pause incentive programs.<\/p>\n

The federal government is aiming for 50% of all new vehicle sales to be electric by 2030, up from around 7% in the first quarter of 2023.<\/p>\n

\n

FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

US car buyers are going electric at a record pace. The overwhelming demand is causing some states to temporarily pause EV incentives designed to promote adoption. Despite overall auto sales falling, electric vehicles were a bright spot in the industry last year. According to data from Cox Automotive, total US auto sales fell 8% year-over-year […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-47903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47903"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47903"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}