Recent reports state that as consumer demand declines, automakers are reducing the production of electric vehicles. The car industry has been in a “euphoric” condition for the past few years, with corporations setting lofty sales goals and upbeat predictions for the growth of electric vehicles (EVs) that have impressed Wall Street.

But as automakers have to accommodate consumer choice, which is at odds with the upbeat forecast, this mood is eroding. “Automakers are cutting back or delaying their electric vehicle plans,” according to a CNBC article. These manufacturers include Ford Motor, General Motors, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin.

Even if sales of EVs are still expected to rise, there are clear challenges facing the market. Reports state that EV sales increased 40% year over year in Q4; while this is a good statistic, it is a significant decrease from prior quarters, like Q3, when EV sales increased by 49%. EV sales increased at a pace of 52% annually in Q42022.

Some have attributed consumer reluctance to buy a battery-powered vehicle to a range of challenges specific to EV ownership. For instance, a fully charged battery cannot travel as far as a fully charged gas tank, which may necessitate drastically changing driving habits. Furthermore, the cars cost more than gas-powered cars, which is significant considering the historically high inflation that Americans have experienced.

Although most people think that electric cars (EVs) will rule the road going forward, buyers are increasingly choosing hybrid cars. “EVs are ‘the future,’ but they are not doing well right now,” Morgan Stanley analyst Adam Jonas stated. “Hybrid sales in the US are growing five times faster than EV sales.”