Interest in electric vehicles has been below average for some time now, and with decent reasoning. Most of the time, EV's have become overpriced, and have had reliability questions all through their lifespan. Most people love their gas cars and trucks, and do not want to spend an hour charging their vehicle in the middle of a road trip.
Still as we enter 2026, Americans continue their reluctance to go the EV route, based on how insanely expensive the cars have become. That of course is not just solely for EV's, as most cars are becoming higher priced with less reliability. But the tide might be turning a bit, especially as the Trump administration begins peeling back some of the subsidies enacted by the Biden administration.
Those subsidies were placed in hopes of driving people to buy electric, all to fall flat on its face with zero demand. Meanwhile, the prices of EV's still remain high. But Brian Moody of Kelly Blue Book says the reluctance to buy electric is not surprising, but the relaxing of the subsidies might help drive new demand.
"They were so expensive we had to use taxpayer money to subsidize the cost of those cars...now that is over, many people are looking, wondering what they are getting out of this," he says.
The elimination of the insane subsidies will actually bring more competitive balance back to the market. People like a freedom of choice, not to be shackled to one thing because another is too expensive. The subsidies being gone will actually bring EV prices down to a relative range and finally catch the eye of some people.
Again, we are a car country, especially here in Texas. But with long commutes and the cost of living still sky high, people might be looking for a new alternative. Which could mean a boom for one part of the EV market this coming year.
"I think most people are looking at not only the price, but the convenience of it...and I think 2026 is going to be the year of the hybrid," says Moody.
While a hybrid is not all electric, it is both gas and electric, they do tend to get better fuel mileage than any gas car on the market. Make no mistake, anyone moving to get a hybrid is not doing so to "save the planet" as most Democrats want.
It is solely from a cost standpoint. With the cost of those EV's coming down, it opens up a new option for people tired of filling up their tank five times a week.
"I think most people are going to say they do want to do something to consume less...but also need it to fit their lifestyle," Moody says. "Hybrid is where that works...places like Nissan and Toyota are doing a great job at offering hybrids that people want."
New gas models are fine, and less expensive. But the downside is that with all the Biden administration's demands on less emissions, it has made them less reliable with all the extra bells and whistle. All of it in some vain effort to "save the planet."
While EV's are still sitting in the back of people's minds, 2026 could be a huge year for the market.
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