Is the Accelerating EV Business Slowing Down?

Electric vehicles, which many have viewed as a key to a low-carbon future, have seen their sales and financial conditions booming for the past several years. Now the bright EV prospects are fading a bit.

• Bears are ravaging Tesla’s stock. Tesla (NASDAQ:TSLA) has fallen 50% from its all-time highs, which rose over 116% from its 2010 initial pubic offering. The automaker/solar battery company reported third quarter revenue of $23.45 billion and earnings per share of $0.66, down from Wall Street estimates of $24.1 billion and $0.73/share. Business Insider commented that it expects Tesla stock “to underperform the broader markets in the next 12 months,” due to “its lofty valuation, pricing pressures, and tepid consumer demand.”
• GM says it will delay production of its Chevy Silverado and GMC Sierra EV pickup trucks and the Equinox full-size SUV EV for a year at one of its major assembly plants. GM spokesperson Kevin Kelly told The Detroit News the move is designed respond to “its lofty valuation, pricing pressures, and tepid consumer demand.” In a related development, Reuters reports that Japan’s Honda “and General Motors (GM) are scrapping a plan to jointly develop affordable electric vehicles (EVs), the Japanese company said on Wednesday, just a year after they agreed to work together in a bid to beat Tesla in sales. “
• Ford’s money-losing EV business has led the company to scale back production, according to The Verge, postponing $12 billion in new factories, including a battery plant in Kentucky. The web site said, “The reasons given were an unwillingness by customers to pay extra for its electric vehicles. You see, they’re too expensive, and now Ford’s massive transformation into an EV company is now going to take a lot longer than before.” Ford said it expects to lose $4 billion this year on its EV program.
• https://thequadreport.com/is-the-accelerating-ev-business-slowing-down/