Former Energy Secretary Dan Brouillette joins ‘Varney & Co.’ to discuss President Donald Trump’s repeal of Biden-era fuel standards, electricity costs and his views on gas prices.
Interest in electric vehicles (EVs) is waning among U.S. consumers following the end of federal tax breaks and amid ongoing concerns about costs, repairs and access to charging stations, analysts say.
Demand for electric vehicles fell following the Sept. 30 termination of federal EV tax credits — a $7,500 tax credit for new vehicles and $4,000 for used vehicles — that were eliminated under President Trump’s “Big Beautiful Bill,” signed into law in July.
“If you look at the most recent months – so October and November – you will see that it has not come to a standstill, but there has been a noticeable decline,” Drury said.
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Volkswagen’s pure electric vehicles are ready to be shipped abroad in an orderly manner at the port area of Longtan, Nanjing, Jiangsu Province, China. (Costfoto/NurPhoto via Getty Images / Getty Images)
“I think over the next six months we’ll probably see the market really move to the point of natural demand without that carrot of a stimulus,” Valdez Streaty said.
But the cooling trend started long before the credits expired. According to AAA’s research Published in June, only 16% of American adults said they were “very likely” or “likely” to buy an all-electric vehicle as their next car, down two percentage points from last year and down nine percentage points from 2022.
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Electric vehicles are parked at a Tesla charging station in Sausalito, California. (Justin Sullivan/Getty Images/Getty Images)
AAA found that high battery repair costs and purchase prices remained major obstacles for consumers. EVs cost about $10,000 more on average compared to gas-powered vehicles, Valdez Streaty said.
“Affordability is a major issue in EV adoption,” she says, adding that many consumers are unaware that EVS typically has an eight- to 10-year battery warranty.
“Infrastructure is another barrier,” Valdez Streaty said. “…I think consumers are thinking carefully about, ‘What about if I have to make that long trip or if I’m on vacation? I want to have an accessible, reliable and user-friendly infrastructure.'”
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EVgo fast charging stations in South San Francisco, California. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Former Energy Secretary Dan Brouillette recently said he believes electric vehicles will continue to be part of the auto market, but “we need to understand where they fit.”
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On Wednesday, Trump announced a reset of federal fuel standards tightened under the Biden administration, which the White House said would save “a total of $109 billion” for American families.
