
the staff of the Ridgewood blog
Ridgewood NJ, The electric vehicle (EV) industry is experiencing a sudden slowdown, and it’s hitting once-promising startups the hardest. Shares of companies like Rivian and Lucid have plummeted by more than 90% from their previous highs.
Mercedes-Benz recently announced a setback in its electrification objectives, revealing a five-year delay. In a similar vein, Ford observed a significant decline in electric vehicle (EV) sales for January. Meanwhile, Toyota remains committed to its hybrid lineup, prioritizing its development. Adding to this narrative, Apple disclosed yesterday its decision to abandon its secretive car project entirely.
Despite the continued growth in EV sales, which saw a 31% increase last year, the momentum seems to have tempered as we potentially approach “the chasm” in the adoption curve—a phase where new technology struggles to transition from early adopters to mainstream acceptance.
While the EV deceleration may not spell disaster for traditional automakers, it poses a significant obstacle for cash-intensive EV startups reliant on new capital and investors to scale. Rivian, for instance, has not outlined any plans for production expansion this year and is downsizing its workforce by 10%. Lucid has slashed prices for its luxury EVs three times in the past seven months and now anticipates manufacturing only 9,000 cars this year. Additionally, Volvo has pulled its financing of Polestar, leaving its Chinese parent company, Geely, to provide support for the struggling EV manufacturer.
Factors such as range anxiety, cost (with the average EV still priced at over $55,000 despite price reductions), and ongoing apprehensions regarding the adequacy of charging infrastructure are all weighing on consumers’ decision-making processes. Consequently, the EV industry appears poised for a slower year ahead.
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consumers need choice not mandates
Consumers need to shut up and like what I tell them to like.
The mandates are spoiling something that should have been allowed to prosper or fail on its own.
Bur central planners know best. History tells us that.