EV Maker Slashes Prices To Stimulate Waning Consumer Demand, Compete With China
Things aren’t going very well for the EV industry. Once considered the saving grace of the environment, the pricey and unreliable vehicles are no longer the panacea they were once believed to be. Despite globalist nations, including our own, pushing their green agendas with unrealistic expectations, most consumers haven’t warmed to the idea of a vehicle that could fail in extreme temperatures.
Electric vehicles entered the marketplace very strongly. The first manufacturer to gain broad appeal, Tesla, was considered a virtue signal and a status symbol for the elite left. That was until Elon Musk purchased Twitter and returned it to an open exchange of ideas. Furious liberals everywhere traded in their Teslas for other electric brands like Rivian and Fisker, only to find the technology even more daunting than the once-loved Elon Musk product.
Despite promises of a widespread charging infrastructure and generous government incentives, most buyers have stayed away from electric because of the lack of charging stations and incentives that can’t be achieved based on tricky wording regarding the content of the batteries. Of course, those are just a couple of reasons why buyers are giving vehicles the cold shoulder in favor of gasoline-powered cars, but the once promising future of electric vehicles is suddenly dimmer than it has ever been.
Speaking of Tesla, in an attempt to stimulate sales, the company recently announced temporary price cuts to their Model Y vehicles in the United States. The cuts will remain in place through the end of February and are on the heels of the recent price cuts in Germany by the automaker. While the cuts aren’t dramatic, they still may be a sign of tough times ahead for the electric car maker.
Tesla cut Model Y prices in Germany after suspending production at a Berlin-area factory, citing disruptions in the supply chain in the Red Sea. In January, Tesla cautioned about “notable lower” sales growth in 2024 as it shifts its focus to the next generation of their electric vehicles. The modest price cuts of $1,000 each represent a 2.3% and 2% cut from the list price.
Tesla is bracing for competition from cheap Chinese electric vehicles such as the ones made by BYD. That company surpassed Tesla as the world’s leading EV maker in the last quarter of 2023. Considering the high price currently of the most widely available electric options, a cheaper alternative, even if it is Chinese, may be sought by budget-conscious buyers.
There have been warning signs on the horizon for some time. Many automakers, such as Ford and General Motors, have slowed production, cut jobs, and tempered expectations, while Toyota continues to invest in new internal combustion engines and hybrid and hydrogen cell technology. Tesla has also seen a 22% decline in their shares in 2024 and has fallen by 0.6% for the last year.
There are numerous potholes in the road ahead for electric vehicles, and it is unclear if any automakers will be able to navigate them successfully. Technology must improve, the government must do its part in terms of charging, and the second generation of cars must be more reliable and feature better range. Even then, it will be a hard sell for many folks, despite Joe Biden’s insistence otherwise./source:theamericantribune
