**U.S. Electric Vehicle Sales Surge in May**
Sales of electric vehicles (EVs) in the United States reached over 85,000 units in May 2023, marking the highest level since the federal $7,500 EV tax credit ended in 2022. This rebound comes as the automotive industry faces rising interest in EVs, propelled by increasing gas prices and attractive incentives. Despite the strong demand, the average transaction price for an EV fell to $54,532, reflecting an ongoing 11-month trend of declining prices.
Incentives for EVs are substantial, with automakers spending approximately 14% of an EV’s transaction price on incentives—around $7,600 per vehicle—double that of gasoline vehicles. This shift indicates strategic adjustments by manufacturers as they navigate a changing market landscape, although Ford Motor Company (NYSE: F) is currently facing challenges, evidenced by a 58% year-to-date decline in its EV sales.
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