Electric Vehicle Expansion Plans Slow as Automakers Confront Lagging Sales and Profitability Challenges
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Electric vehicle and battery manufacturing plans were rapidly expanding in North America, fueled by government incentives and climate change goals. Companies like Tesla, GM, and Ford led the buildup.
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But consumer enthusiasm and EV sales have lost momentum recently, leading automakers to scale back investments and slow down factory plans.
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The pullback threatens efforts to reduce reliance on EV batteries and materials from China. Mining projects to supply lithium and other minerals face delays.
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Slower EV sales expose the challenge for GM and Ford to make profits on electric models, even as new labor deals raise costs. Tesla may stand to gain market share.
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Key tests coming from smaller, more affordable electric SUVs and rising hybrid sales, indicating consumer preference for lower-cost options with fewer tradeoffs.