The street… 84% of last year’s US car sales were traditional gas guzzlers, their lowest-ever share of sales as the avenue gets more electric. This year, six of the US’s top electric vehicle makers reported EV sales gains of more than 50% annually in the first quarter. But overall growth slowed, dragged down by misses from GM and Tesla (Tesla is still the only EV maker putting out US models en masse). As electric demand cools, GM, Ford, and Tesla have put billions of $$ in planned EV-vestments on ice. Others including Toyota and Nissan have switched gears to focus on hybrids.
In the gas world: The vehicles that typically have the worst miles/gallon (SUVs and trucks) are outselling sedans, causing automakers to discontinue several sedan models (bye, Chevy Malibu). Looking ahead, EV makers are racing to sell electric SUVs and trucks (hi, Cybertruck).
The traffic… Competitors are clogging the EV road, and the congestion’s led to jams. EV startup Fisker declared bankruptcy last week, following Lordstown Motors last year. It’s not just smaller players struggling: GM recently cut its annual EV sales forecast on slowing demand, while Tesla deliveries fell 9% in Q1 (its first year-over-year quarterly drop in nearly four years). And Tesla told employees it planned to shed 10% of its workers. Competition isn’t just coming from the US:
Red flag: Budget Chinese cars are taking over global roads and dominating the EV space (China’s BYD surpassed Tesla as the world’s largest EV seller last year). The US and EU have revved up tariffs to fend off the ultra-affordable models.
The road ahead… Automakers could see hybrids as a necessary middle ground on the long road to EV mainstream-ification. Two big all-electric hurdles: range anxiety and affordability. Car companies are racing to debut EVs that last longer on one charge and ring up closer to $25K.