High EV prices hinder U.S. adoption, with only 3% under $37,000, says Bank of America report.

The high cost of purchasing an electric vehicle is slowing uptake among U.S. consumers, according to analysts at Bank of America (BOA). The report suggests that only 3% of all EVs in the US are priced under $37,000, compared to over half of gas-powered or hybrid vehicles. The analysis assumes that most consumers will buy an EV if the price is competitive with an internal combustion engine vehicle. However, manufacturers are unlikely to achieve ICE-comparable costs on EVs until 2028. BOA analysts now expect EVs to make up about 8% of vehicle sales in 2024, 14% in 2027 and 29% in 2030. Despite a potential slowdown, utilities are expecting the shift to electric transportation to drive significant load growth, as well as the electrification of building systems and data centers.