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 (YoY) from 2021, but EV sales climbed 65%, passing 800,000 in volume for the first time.
The trend is not slowing this year either. The latest data shows EV sales broke another record in Q1, surpassing 250,000 and claiming over 7% of total US auto sales.
There are several reasons for the rising demand for EVs – for one, more availability. Tesla continues to churn out a record number of electric vehicles, producing over 440,000 units (up 44% YoY) in the first three months of 2023.
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).
Light duty electric vehicle sales (Energy.gov/Argonne National Lab)
Federal incentives, such as the EV tax credit extension from the Inflation Reduction Act, provide up to $7,500 for new buyers and $4,000 for used.
States and several utility companies offer additional incentives, ranging from a few hundred dollars up to several thousand (most are in the $1,500 to $3,000 range).
However, with customers flocking to electric vehicles, several states are becoming overwhelmed, causing them to pause the programs.
States pause incentives as EV demand rises
According to an AP News post this week, New Jersey has become the latest state to temporarily suspend its rebate program after running out of money due to its popularity.
The state’s “Charge Up New Jersey” program gives residents up to $4,000 in incentives to purchase or lease a new electric vehicle.
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.
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.
Since launching nearly three years ago, the program has supported the adoption of over 25,000 EVs by providing over $90 million in funding.
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.
The Oregon Department of Environmental Quality announced in March it would temporarily suspend its EV incentive program. Oregon’s Clean Vehicle Rebate program started in 2018, providing up to $7,500 for qualified households. DEQ’s senior advisor Rachel Sakata said:
Unfortunately, we’ve become a victim of our own success and we’re running out of money.
Electrek’s Take
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.
With 250,000 electric vehicle sales in Q1, the US is well on its way toward 1 million EV sales this year.
We’ve 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.
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.
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Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
FedEx electric delivery vehicle; via Workhorse.
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.