So predictable and so unnecessary…the market is a vengeful lover….
Top analysts break down the 'meltdown' of the global electric vehicle market
Deutsche Bank's lead auto technology analyst Emmanuel Rosner said that the EV adoption curve is clearly slowing down. As a result of this, a "meltdown" is currently striking both investor expectations and previously earnest automakers.
"Companies have planned massive investment on the premise of much faster adoption of EVs; this is not playing out," Rosner told
CNBC. "It's a real meltdown of expectations, which has resulted in a meltdown of stock prices."
The culprit behind the 'meltdown'
The issue at hand is a gap in the EV adoption curve. The early adopters, Rosner said, didn't care about higher prices and nascent infrastructure. But it will take time to get the mass market interested in going electric when the lack of infrastructure still supports range anxiety and the prices still run higher than a gas-powered car.
And despite Tesla's consistent price cuts, Rosner said, the car company likely won't have an EV that's affordable enough for the mass market until around 2025.
"Affordability is going to be the biggest lever," he said.
CarGurus' industry analyst Kevin Roberts likewise said that it is this unique combination of higher prices and ongoing range and infrastructure anxiety that has led to this bump in the EV adoption road.
"We saw automakers moving quickly to get new EVs to marketplace," Roberts told
CNBC. "But what we're seeing now is a lot of early adopters have likely adopted, and with the pricing parity still not there, we're likely seeing some hesitancy toward mass adoption at this rate."
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