A new Bank of America Institute report didn’t just lower projections for electric vehicle sales through 2030, it used internal auto-loan originations data to tell us why. Writing that EVs represent one area of the auto market that “still appears relatively soft,” BofA found three main reasons why shoppers are shying away from the next generation of driving. But it also identified a generational shift in consumption—and baby boomers and “traditionalists” are leading the exodus away from EVs.
The bank’s analysts, led by Bank of America Institute senior economist David Michael Tinsley, found that after a post-pandemic EV craze that saw sales triple from 2021 to 2023, demand cooled off in the second half of last year. There are three main causes, they wrote: “a lack of affordability, limited choice, and ‘range anxiety,’” or the worry that people will be stranded, as infamously happened in Chicago this January, when consumers couldn’t charge their Teslas in negative 9-degree weather.
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