Bloomberg published an article today detailing how Tesla has excited people about EV’s, but customers are only buying from Tesla and no one else. Its a good read. For those of you not wanting to though, here are the cliffs:
- An executive at Toyota is predicting a coming EV Armageddon due to slow EV market growth
- The cause for this Armageddon is expected to come from the choice of EV models swelling to 121 models in the next half decade. Supply is going to outpace demand. There are just 18 choices today. Automotive research firms see all these models making up just 5% of the market.
- The article states that legacy automakers have been holding back diving head first into the EV market until pricing is on par with ICE engines, which they say could happen by ‘24.
- EV sales are expected to be at what midsize sedans are selling now, or just under a million units a year.
- Tesla accounted for 8 in 10 EV sales in the US last year.
- Even with high profile star studded intros of EV’s like the Mustang Mach-E and Taycan, consumers aren’t interested
- From the article: “Sales of the Chevrolet Bolt sagged almost 9% last year and the Nissan Leaf slumped 16%, with neither cresting 17,000 units. Last month, Mercedes-Benz put off the U.S. debut of its first EV by a year after Jaguar and Audi struggled to sell their first electric offerings.”
- Also from the article: .”...a study released by Deloitte this month found 27% of U.S. consumers are actively considering a hybrid, while just 8% are looking at pure electrics. Some 59% of Americans still want gasoline-powered cars, the highest of any country Deloitte surveyed globally.”
- Consumers are concerned about the lack of charging stations
The article ends with the Toyota exec stating “Someones got to buy these things (EV’s). There is a market. The question is: How big and when will it mature?”
Overall, market researchers and firms don’t paint a pretty picture for EVs in the coming years.