Electric car fiasco “on the brink of collapse”
EV storm in a bubble.
…
By Jo Nova
It’s hard to keep up with the great EV unravelling
The best news for the EV industry this month is that Ford is only losing $50,000 a car now on its electric vehicles. That’s so much better than the $132,000 it was losing last quarter. But the true economic carnage is deep and widespread. The one sure bet in the world of electric vehicles was Tesla where sales rose two percent in the last quarter but their profits plummeted 45%. The fire-sale shifted cars but it burned the bottom line. Similarly Mercedes Benz profits were down 21%, mostly thanks to EVs. And Ford’s were down 35% (not surprisingly).
We knew things were bad when the new invention has a small market share but already half of the owners wanted to go back to the old style.
There is trouble even in China where shares in Evergrande New Energy Vehicle are down almost 40% so far this year. Apparently some creditors are coming after Evergrande seeking bankruptcy proceedings for two of its EV arms.
Nearly every major manufacturer is delaying new models or rewriting their targets. Ford is delaying several models, and is redesigning a plant in Canada that was going to make EVs to one that will build pick-up trucks with fossil fuel engines. Bentley and Aston Martin have pushed back the launch of their first EVs. Jaguar have said they will drop two of their planned EV models and keep making their gasoline SUV for longer. Volkswagen diverted $60 billion back into developing ICE cars. Suddenly, they’ve all discovered that Hybrid cars are quite interesting.
https://joannenova.com.au/2024/07/electric-car-fiasco-on-the-brink-of-collapse/
