Tesla among electric carmakers forced to cut prices as market stalls

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EV sales have plateaued across the world but the newfound glut of vehicles may just be temporary

lon Musk became the world’s richest man by evangelising about electric cars – and delivering them by the million. Yet in recent months his company, Tesla, has struggled to maintain its momentum: sales have dropped this year, and so has its share price.of the coronavirus pandemic years, the pace of sales growth has slowed. The industry has entered a new phase, with questions over whether the switch from petrol and diesel to cleaner electric is facing a troublesome stall or a temporary speed bump.

“The economic headwinds are quite ugly in general, so it doesn’t surprise me that we’re having a slowdown,” said Ian Henry, whose AutoAnalysis consultancy works with several carmakers.can be higher in some places because of a shortage of mechanics. Another important factor is the very patchy introduction of public electric chargers, which is giving some potential buyers cause to pause.

He said: “The consequence of this is that everybody will start pushing the BEV , pushing the metal into the market, which then totally destroys profitability, which then destroys the companies.”Schmidt said carmakers’ complaints may have an ulterior motive. The EU rules will ban most internal combustion sales by 2035, but they are due for review in 2026.

 

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