Every day, headlines predict that electric vehicle (EV) sales will soar in the near future. However, reports from the car dealers, the on the ground source that hear directly from customers, reveal a different story. Many dealers’ express frustration with the constant focus and push on EVs. Despite generous federal tax credits, EVs remain a niche, albeit growing, segment of the car market, constituting around 9%. The dominance of Tesla, accounting for most EVs sold, contributes to dealers’ sense of disillusionment.

While dealer frustration is understandable, there is a bigger picture to consider. We might be on the verge of a significant increase in EV demand, contingent on certain conditions being met from car shoppers who signal they are still skeptical of EV’s. 

Currently, the EV market is not performing spectacularly. Tesla has reported another quarterly sales drop, and Polestar’s delayed 2023 financials were lackluster. The overall demand for EVs is not rising as rapidly as before, with April’s sales only up 12% year-over-year compared to the over 50% annual growth seen in 2023. However, these figures can be misleading due to Tesla’s market dominance. Excluding Tesla, EV sales increased by 75% from 2023 to 2024, indicating robust growth among traditional automakers despite waning initial excitement.

The consumer perspective is another crucial aspect. EV buyers overwhelmingly love their vehicles, with 68% of non-Tesla owners rating their EV as the best car they’ve ever owned. Moreover, 73% of EV buyers say they will never return to internal combustion engine (ICE) vehicles. These statistics highlight the strong customer satisfaction and potential for market growth beyond Tesla.

For the EV market to truly thrive, certain conditions need to be addressed. One significant issue is the quality of EVs. The auto industry has seen a decline in car quality as brands compete for market share, often rushing development and cutting corners on testing. According to J.D. Power’s Initial Quality Study, the average number of complaints per 1000 vehicles was 195 in 2024, but for EVs, this number jumped to 266. Many of these issues are software-related and theoretically easy to fix, but manufacturers often ship products prematurely, relying on over-the-air updates to resolve post-launch bugs.

Dealers face challenges due to poor EV quality. Many service centers lack the necessary equipment and expertise to adequately serve EV owners, and even top technicians can struggle with software issues. This not only affects the buying experience but also hampers dealers’ ability to sell EVs effectively.

For EV sales to skyrocket, car buyers need better, higher-quality products. The substantial investments automakers have made in research and development must yield tangible improvements in vehicle reliability and performance.