As Tesla's shares fell 33% on the year, demand for electric vehicles has stalled.
Inputs that matter: According to Bloomberg, Tesla has reclaimed its title as the world's top seller of electric vehicles, snatching the lead back from China's BYD.
- During 2023, electric vehicle sales passed the 5% tipping point in 31 countries.
- In 2022, only 19 countries had EV sales more significant than 5%.
- Bloomberg reports, "The trajectory laid out by countries that came before them shows how EVs can surge from 5% to 25% of new cars in under four years."
The opportunity: Thailand emerged as Southeast Asia's EV pioneer, surpassing the 5% threshold in the first quarter of 2023 and rising to nearly 13% of new car sales by the last quarter.
- Norway, with 79.6%, Iceland, 58.4%, and Denmark, 44.9%, are the leading EV countries.
- China is at 23.8% EV adoption, and the U.S. comes in at 8.1%, which is the core market for Tesla.
Zoom in: Sales of electric vehicles are partially based on environmental concerns, but demand generation is far more complex.
- Madalina Vlasceanu and colleagues surveyed 59,000 people across 63 countries about their views on climate change, reporting the results in Science Advances.
- 86% of respondents believe climate change is a severe threat, and humans are the cause.
Between the lines: While many people are concerned with climate change, their response to appropriate action centers around government policy and not individual responsibility.
- The main driver for EV growth is battery technology, which provides a more extended range between charges.
- Next is the cost that can be circumvented with tax credits.
Follow the money: The Verge explains, "Tesla is closing in on a new manufacturing process that could significantly reduce costs and increase production of its electric vehicles."
- Tesla's new technology and Chinese rivals such as Xiaomi are driving down the cost of EVs.
- According to the Wall Street Journal, Tesla has been awarded more sites than any other company to help build the nationwide fast charging network.
- Ford, BMW, Genesis, General Motors, Honda, Hyundai, Jaguar, Kia, Lucid, Mini, Mercedes-Benz, Nissan, Polestar, Rivian, Toyota, and Volvo can also use the Tesla charging system.
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Read More
- https://www.bnnbloomberg.ca/tesla-s-sales-miss-by-the-most-ever-in-brutal-blow-for-evs-1.2054179
- https://www.bloomberg.com/news/articles/2024-03-28/electric-cars-pass-adoption-tipping-point-in-31-countries?embedded-checkout=true
- https://ourworldindata.org/climate-change-support
- https://www.nrdc.org/stories/demand-grows-electric-cars-does-market-green-jobs-ev-industry
- https://banananomics.co/evolving_the_ev_assembly_line
- https://www.consumerreports.org/cars/hybrids-evs/tesla-superchargers-open-to-other-evs-what-to-know-a9262067544/