Several automakers are halting a full-steam-ahead approach to electric vehicles, citing economic uncertainties and underscoring fears regarding a slowdown of demand for the cars.
Musk's comments came after shares in the company went down 8% Thursday, as well as shares of other EV makers. General Motors said on Tuesday that the company plans to delay production on the Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan for a year. GM cited flattening demands for EVs.
"It does highlight that there could be a slowdown in EV in the near term," Tom Narayan, global autos analyst at RBC Capital Markets, said in an interview with Reuters."But it has more to do with pricing and affordability than a rejection of EVs." "If interest rates remain high ... it's that much harder for people to buy the car. They simply can't afford it," Musk said, adding he would"accelerate" the expansion of the Mexico factory if interest rates come down.