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US EV market struggles with price cuts and rising inventories

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece here in Reuters or enjoy below

🗞️ Driving the news: The US electric vehicle (EV) market is seeing a slowdown in growth, with inventories of unsold EVs rising at some automakers' dealerships, and Tesla implementing new price cuts, according to industry data and analysis

🔭 The context: The growth of the US EV market may be less than expected, even with federal and state subsidies
• Currently, EV sales hold a 7% market share. This slowdown poses a significant challenge to North American automakers, who have invested heavily in EV technologies

🌎 Why does it matter for the planet: Should any obstacles arise that delay the adoption and sales of electric vehicles, this could impede the critical shift towards these eco-friendly transport alternatives, essential in lowering greenhouse gas emissions and addressing climate change

⏭️ What's next: More than 90 new EV models are expected to hit the US market through 2026
• If the production continues to outpace demand, automakers will face the tough choice of either reducing prices (and profit margins) or slowing down production

💬 One quote: "There's a natural speed of market growth here that many are fighting against, and there's a lot of confusion in the market with too many brands" (Vitaly Golomb, investment banker who focuses on electric vehicles) 

One stat: According to a report from Cox Automotive, US dealers have more than 92,000 EVs in stock, which is over three times the number from a year ago

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