Fewer consumers planning to buy EVs, impacting sales growth, increasing competition in EV market.

From Nasdaq.: 2024-09-13 03:18:00

1. Electric vehicle (EV) sales are still growing, but the rate of growth has significantly slowed this year. In the U.S., EV deliveries increased by 11% in the second quarter, a big drop from the over 50% growth seen in 2023. Europe also experienced a slowdown, with just a 1% increase in deliveries compared to last year.

2. A recent survey by EY showed a decrease in consumer intentions to purchase EVs. Only 34% of U.S. consumers planning to buy a new vehicle in the next two years intended to buy an EV, down from 48% in 2023. Concerns over battery replacements, limited range, and a lack of public charging stations were noted as deterrents.

3. The slowdown in EV sales raises questions about what to do with EV stocks. Established companies like Tesla are facing challenges as new competitors enter the market. Traditional automakers are increasing efforts in the EV space, however, facing losses. Upstart EV players are seeing strong sales but with negative gross margins, making investing in EV stocks a tough choice.

4. Despite challenges, Rivian is emerging as a favorite among EV stocks. The company is gaining market share, moving towards positive gross margins, and has strong backing from Volkswagen and Amazon. Investing in EV stocks remains speculative, but companies like Rivian may offer potential returns in the future.



Read more at Nasdaq.: Fewer Consumers Are Planning to Buy EVs. Is It Time to Sell Rivian and Tesla Stocks?