The electric vehicle (EV) industry is in trouble in the United States. There had been an expectation that half the new cars sold in 2030 would be EVs. Last year, the number was 8% of new cars. And that market share is not increasing quickly. People continue to worry about a list of concerns, including the number of charging stations and range on a single charge.
Costco Wholesale Corp. (NASDAQ: COST) may help drive EV adoption through its Costco Auto Program.
Electric vehicle makers have been searching for a new path to increase sales.
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Costco Wholesale Corp. (NASDAQ: COST) may help drive EV adoption through its Costco Auto Program, which cuts deals with major manufacturers to sell their cars. Costco members get discounts below MSRP (manufacturer’s suggested retailer price). The latest of these is with Audi, which includes EV models. Among the reasons may be that Audi’s EV sales have been weak and are getting weaker.
The Costco arrangement with Audi lets the huge retailer offer discounts of as much as $2,000. Costco members get a certificate that they take to an Audi dealership to receive the price cut. Costco has 136 million members.
The Audi program lasts from March 4 to April 30. “If a member is looking for a new luxury sedan, SUV or electric vehicle, the Audi Limited-Time Special is a great place to start,” said Cory Benwell, Costco Auto Program general manager.
Car companies that produce and market EVs have very few paths to increase sales. Ford, for example, sold only 7,326 EVs in the United States during February. Total sales for the month were 158,675. Ford loses as much as $100,000 for each EV it sells.
Most legacy car companies find themselves in a situation similar to Ford’s. Often, this means they need deep discounts to move EVs off dealer lots. Ford currently has 0% financing for 72 months and a free home charger on some models of its EV flagship F-150 Lightning.
If the Costco EV sales channel works well, car companies will have finally found a successful outlet.
These States Have the Most EV Charging Ports in America
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