A recent story chronicles the struggles of a number of electric vehicle dealerships in the San Francisco area.  Some have closed their doors, others report low sales and some are changing their focus to the commercial market and/or their product mix.  The latter includes switching to off-road electric vehicles and electric bikes or scooters.

The factors causing a downturn for these dealerships, which primarily sell LSVs, include lower gas prices, a poor economy in which these vehicles as a second car become a luxury, and the inability to drive the vehicles on highways.  Learn more:  Contracostatimes.com

Comment: It is not clear that this trend is a national one or local, given the level of highway use in California.  In 2009 LSV sales were robust as a whole because of generous federal tax credits.  I think in areas that have a history of widespread use of these vehicles as well as golf cars, electric vehicle dealerships should have a better chance of success.  Unfortunately for many of these dealerships, they opened not too long before the economic downturn. As the economy rebounds and electric vehicles that can attain highway speeds come to market, it will be interesting to see if these type of dealerships start to increase again. – Marc Cesare