Products You May Like
The electric vehicle market has dealt with its fair share of embarrassments lately, leading to speculation around the combustion engine alternative’s long-term viability. But while the EV industry might be enduring some growing pains, a new analysis from Bloomberg suggests that despite recent events, the market is “on the verge of its next growth spurt,” with some automakers achieving record-breaking sales. Rather than an overall downturn, recent numbers may indicate a breaking point for consumers who seek to marry a decent battery range with reasonable prices.
On Tuesday, Bloomberg Green published its report alongside the marketing and financial firm Cox Automotive. While Tesla, General Motors (including its GMC, Chevrolet, and Cadillac subsidiaries), and Volkswagen have experienced a year-over-year downturn in first-quarter EV sales, Ford, Rivian, Mercedes, BMW, Toyota, and Hyundai (including its Kia subsidiary) have each seen a 50% minimum increase in EV sales since Q1 2023. (Nissan’s EV numbers appear to have stagnated entirely, thanks to its minimal EV lineup.)
Despite Tesla’s overall struggle with optics, its lower sales counts can’t be chalked up to decreased interest in the brand. Model 3 production was reportedly paused to accommodate a design refresh announced last year, limiting access to Tesla’s most affordable car. GM meanwhile discontinued the Chevy Bolt, its most popular electric option, before the vehicle’s successor—the 2024 Chevy Equinox EV—was ready to hit dealer lots. Both models set aside, EV sales in the United States grew 23% between Q1 2023 and Q1 2024.
Credit: Bram Van Oost/Unsplash
These figures might come as a surprise to those familiar with the EV industry’s latest dramas. In April, Tesla laid off almost all of its Supercharger team—a decision CEO Elon Musk has reportedly walked back since. (The company had just terminated roughly 10% of its workforce in the months prior.) Not only did this not bode well for larger EV charging infrastructure, but Ford announced it would scale down its plans for a $3.5 billion battery plant, leading to disappointments around American EV supply chain optimization. Both headlines lent themselves to the general impression that EVs, having been lucky enough to experience a fairly extended boom, were starting to roll downhill.
But industry analysts expect the EV market to skyrocket over the coming years. In April, the International Energy Agency projected that US EV sales would reach 2.5 million in 2025, more than doubling last year’s sales. Hankook Tire’s Gauge Index: EV Edition also found that more than half of American drivers would consider buying EVs if their options were priced similarly to combustion engine vehicles. (This statistic rose to 75% for Gen Z specifically and 63% for millennials.) As Cox Automotive director of industry insights Stephanie Valdez-Streaty put it: “We’re still seeing growth in demand, just not at the same pace for every brand.”