The electric vehicle (EV) market is not crashing

 

The electric vehicle (EV) market is not crashing, despite a slowdown in growth. According to the International Energy Agency, worldwide sales of plug-in vehicles will rise by over 20% this year, although this is less than the 35% increase between 2022 and 2023. The EV industry is entering a new phase, transitioning from early adopters to mass market consumers.

Tesla, which still dominates the US EV market, has seen a decline in sales, leading to a decrease in its market share. However, other established automakers, such as Ford and General Motors, are growing their EV sales. Ford's electric vehicle endeavor is still producing losses, but it is working on cheaper EV designs to make them profitable at lower prices.

General Motors is also accelerating its EV production, with the Cadillac Lyriq selling well and the less expensive Equinox EV about to hit the market. However, the influx of Chinese EVs is a concern for automakers in Europe and the US, as they could potentially disrupt their industries.

The Inflation Reduction Act in the US provides tax breaks for EV buyers, but is geared towards supporting domestic production and steering automakers away from vehicles and components made in China. The tax credits are reduced or eliminated based on where EVs and their parts are produced.

In China, the battle for customers has become intense, with over a dozen EV manufacturers going bankrupt in the past year. Consolidation and bankruptcy are expected to continue, and this trend will also be seen in the American market, although on a smaller scale.

Despite the challenges, growth is expected to pick up next year due to stricter emissions regulations and the arrival of new, more affordable EV models. The industry-wide shift to the Tesla charging standard will also simplify some of the hurdles to EV adoption. Vehicles like the new Chevrolet Bolt EV and electric Dodge Charger could inject new excitement into the market.

According to Corey Cantor, an industry analyst with Bloomberg New Energy Finance, "If you look at automakers, where they're planning their kind of big EV bumps, or new EV models, a lot of it's in '25." This suggests that the EV market is poised for significant growth in the near future.

In conclusion, the EV market is not crashing, but rather transitioning to a new phase. While there are challenges to be addressed, growth is expected to pick up next year due to a combination of factors, including stricter emissions regulations, the arrival of new models, and the simplification of charging standards.