HomeMarket NewsThe Electric Vehicle Market's Gear Shift: Automakers Adapt Strategies Amid Slowdown

The Electric Vehicle Market’s Gear Shift: Automakers Adapt Strategies Amid Slowdown

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Once a turbocharged engine, the electric vehicle (EV) market now finds itself cruising in a lower gear, prompting major automakers to steer their strategies in a new direction. The industry is now pedaling towards offering a mix of gas-powered, hybrid, and fully electric vehicles, tailoring options to the diverse consumer palette.

Changing Tides

The once roaring EV market is now edging towards a slowdown lane. Major players like Ford Motor F, General Motors GM, Mercedes-Benz Group MBGAF, Volkswagen VWAGY, Jaguar Land Rover, and Aston Martin are tapping the brakes on their EV ambitions, cited CNBC.

Tesla Inc TSLA, the torchbearer of U.S. EV manufacturing, is gearing up for a potential deceleration in growth. This strategic pivot comes in response to the sluggish uptake of EVs in the market, despite clocking a record 1.2 million EV sales in the U.S. last year.

β€œWhat we witnessed in ’21 and ’22 was a momentary surge in the EV demand,” shared Marin Gjaja, chief operating officer for Ford’s EV unit.

Shifting Gears

VW of America CEO Pablo Di Si advocates for a balanced approach. Discussions are revving up to introduce hybrid vehicles to the U.S. market, an avenue yet unexplored by the automaker domestically, despite offering hybrids in Europe.

β€œThe road to EV dominance was never a smooth autobahn; a slowdown post early adopters’ fervor was anticipated,” noted Sam Fiorani, VP of global vehicle forecasting at AutoForecast Solutions. β€œCatering to traditional buyers will pump the brakes on EV market share expansion in the near term.”

The industry is now revamping to provide a smorgasbord of vehicles – gas-powered, hybrid, and fully electric, to satiate diverse consumer tastes. This calibrated approach paves a more pragmatic route to an all-electric tomorrow, albeit at a moderated pace.

Under the Hood

Morgan Stanley’s analyst Adam Jonas rattles the cage with the assertion that Toyota is conspicuously absent from the battery electric vehicle scene yet is poised to claim a lion’s share of the U.S. market this year.

See Also: Elon Musk Congratulates Ford CEO On 100th Anniversary Of Chicago Plant: Jim Farley Says, β€˜History Has Been Made Here…’

The Bottom Line

The decelerating EV market isn’t just tweaking automakers’ roadmaps but also impacting their financial odometers. Fisker Inc FSR saw shares skid post a going-concern alert, coupled with a 15% workforce cutback owing to ballooning losses and a staggering $1 billion debt.

While the Tesla storm gathers dark clouds, Wedbush’s Dan Ives holds the fort, stressing that now isn’t the time to wave the white flag on the EV titan. He underscores Tesla’s AI prowess, abetted by Full Self-Driving (FSD), as a turbo boost propelling the EV juggernaut towards a $1 trillion market cap.

Looking East

Across the Pacific, the Asian EV domain thrives, with China hailing as the global beau ideal in EV adoption and charging infra. With a phenomenal 2.5 million public EV chargers, nearly one for every seven Chinese EVs, the dragon nation spearheads the EV race.

Read Next: Sold Your Cybertruck? Tesla Might Cancel Your Future Orders: Resale Clause Bites Back As One Owner Learns The Hard Way

Image Via Shutterstock

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