The electric vehicle (EV) market has recently faced some challenges, leading to speculation about its long-term viability. However, a new analysis suggests that the market is on the verge of its next growth spurt, with some automakers achieving record-breaking sales.
Despite a year-over-year downturn in first-quarter EV sales for Tesla, General Motors, and Volkswagen, Ford, Rivian, Mercedes, BMW, Toyota, and Hyundai have each seen a minimum increase of 50% in EV sales since Q1 2023. Even though Tesla’s 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 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. Despite these setbacks, EV sales in the United States grew 23% between Q1 2023 and Q1 2024.
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. 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.
However, 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.
Read more: www.extremetech.com