Santa Ana, CA - March 20: Drivers charge their Teslas in Santa Ana, CA, on Wednesday, March 20, 2024. The Biden administration on Wednesday, March 20, 2024, issued one of the most significant climate regulations in the nation's history, a rule designed to ensure that the majority of new passenger cars and light trucks sold in the United States are all-electric or hybrids by 2032. (Photo by Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images)MediaNews Group via Getty ImagesTesla earnings were a mixed bag this week, and EV companies' prospects range from Rivian (soaring) to Lucid (shaky), with established automakers somewhere in between. But with fuel prices spiking as the war in Iran intensifies, it's a good time for car buyers to consider EVs.Market conditions are not great for EV makers, as sales dipped 15% in June from May and fell 28% from a year ago, according to Cox Automotive. But for consumers, that offers opportunity.Prices were down 4.5% in June from last year, though they did creep up 3.5% from May. Cox Auto says the increase came from more consumers buying more expensive EVs, which affected the mix, rather than raw price hikes.AdvertisementAdvertisement"The EV market is expected to remain in a more measured growth phase in the months ahead," Cox Automotive Director of Industry Insights Stephanie Valdez Streaty wrote in her June EV Market Monitor. Cox Auto says electrics make up just over 5% of the market, while other firms place it around 7%.Many Options for Buyers of EVsConsumers have a wide swath of electric vehicle choices, as development plans for many automakers were set years ago when the Biden administration encouraged EV growth in the early 2020s. As a result, Toyota, Subaru, Chevy, Mercedes, Hyundai, Kia and others have extensive EV portfolios.Toyota and Subaru each have three relatively new EVs stemming from a partnership that created a robust electric lineup for the sometimes-rival companies. Chevy also has several models, ranging from the fullsize Silverado EV to the value-oriented Bolt.Tesla was still the national's top seller of EVs in June, moving 40,460 units and increasing its market share to 54%, Cox Auto says. Rivian, which is launching the much-anticipated R2 midsize SUV, saw its sales rise more than 8% from May and took the No. 2 spot on the U.S. sales chart, a notable accomplishment in the face of stiff competition from established companies with deep pockets.Considering Used EVs2023 Kia EV6Used electric vehicles are gaining traction this year as many models' three-year leases are ending, meaning consumers can get into a relatively new EV from 2023 with still-current features and often a carmaker's latest battery technology.AdvertisementAdvertisementCarGurus, an online automotive marketplace, said top selling used EVs like the Hyundai Ioniq 5, Tesla Model Y and Chevy Equinox EV are in high demand."Used EV sales growth is also real, but it's clustered where prices are most attainable," CarGurus analyst Kevin Roberts said in his mid-year intelligence report.He noted that $25,000 to $31,000 is the sweet spot for used EV buyers, which is still thousands less than many new electrics.Re-Thinking Hybrids2027 Toyota PriusMany automakers were all-in on EVs at the start of the decade with some targeting 2030 as their goal for eliminating fossil fuels from their lineups. That strategy saw billions of development dollars poured into EVs, but with the elimination of the $7,500-federal tax credit, sales have cooled.AdvertisementAdvertisementSomewhat surprisingly, hybrids – which use a gasoline-fed engine teamed with electric batteries – have remerged as they offer the best of both worlds. Some, like the Toyota Prius, have versions that can be plugged in for recharging and have significant electric range. Others, like Honda's CR-V hybrid, are simply more fuel efficient than their gas-powered counterparts. JD Power said it expects hybrid market share to grow for the rest of the year."While EV share has softened to 7% following the elimination of federal EV credits, the combination of elevated fuel prices and increased availability of vehicles with hybrid powertrains is driving a shift in the sales mix with hybrid share of retail sales expected to reach 15.9%, up 2.5 percentage points from last year," Thomas King, president of OEM solutions at JD Power, said in the company's July report.My Take on Buying EVs2006 Dodge ChargerI have driven many electric and hybrids over the years, and even with the elimination of the federal tax credit, there are still plenty of incentives out there at the state and local levels, like California's $3,500 rebate for first-time EV buyers. The nationwide average was $4.11 for a gallon of regular gasoline on Friday, an eye-watering figure nearly $1 more than last year. Every time I fill up my personal car, my mind wanders to an alternate universe where I have an electric vehicle.If I were in the market right now, I would strongly consider EVs, especially a lightly used model like the Hyundai Ioniq 5, Kia EV6 or Ford Mustang Mach-E, which still have modern electric technology and plenty of power and range.This article was originally published on Forbes.com
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