In a surprising turn of events, electric vehicle (EV) sales have failed to meet market expectations, leading to a setback for companies other than Tesla Inc. or BYD Co., according to Barclays analysts. Previously, Wall Street had been optimistic about the growth of the EV market, overlooking any potential losses. However, it seems that demand has not lived up to the hype, resulting in tighter capital and less tolerance for EV-related losses.
Further analysis reveals that while Tesla and China’s BYD have continued to experience growth, the rest of the industry has struggled, particularly in Europe and China. Global EV penetration volumes have also fallen short of projections, reaching only 13.5% through May, a mere 0.5% increase from the previous year. These figures are well below estimates from BNEF, indicating a disappointing performance in terms of EV penetration.
The unexpected slowdown in EV sales suggests a temporary halt to the previously exuberant state of the market. Analysts will be closely monitoring future developments to determine if this is merely a momentary blip or a sign of more significant challenges to come.
Electric Vehicle Penetration in the US Falls Short of Expectations
Slow Growth for Major Automakers
Aside from Tesla and BYD, major automakers such as Ford Motor Co. and General Motors Co. have experienced limited growth in EV sales. There are “shades of softness” in their sales, as noted by Barclays analysts.
Concerns About Weak U.S. EV Sales
Barclays analysts have expressed concerns about the weak U.S. EV sales. There have also been reports of sharply rising EV inventory, further adding to the worries. According to data from Wards, the EV inventory reached an all-time high of 95,000 vehicles by the end of June. Ford’s electric Mustang Mach-E SUV accounted for approximately 16,000 vehicles in inventory, while Volkswagen’s ID.4 SUV had 14,000 vehicles in inventory.
GM Faces Challenges Despite Increased EV Sales
General Motors has faced challenges despite an increase in EV sales and robust market-share gain. The majority of their success has come from their Chevy Bolt models, which are nearing the end of production.
In April, GM announced the phasing out of the Bolt and the larger Bolt EUV. This underscores the difficulties in making a profit on EVs, especially with soaring new-vehicle prices. Despite these challenges, automakers continue to prioritize a full transition to EVs.