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ELECTRIFIED: THE TWO-WHEELED FUTURE OF ELECTRIC TRANSIT By Evan Anderson
Why Read: From Chinese dumping of electric cars on the global market to the rise of the electric bike, the future of electrified transportation is now a key global economic question. This week, we review what's happening across the space today and where we are headed. ______ When it comes to renewable solutions in transportation, the rise of the electric car has been the story of the last 20 years. American car manufacturer Tesla has done what CEO Elon Musk promised - moved from high-priced roadsters to increasingly midrange sedans - and, in the process, driving a revolution in auto manufacturing around the world. Perhaps surprisingly, more traditional US and European automakers have more or less failed to meet the moment. Plans to develop affordable electric vehicles in both places have been stutter-step, with prices often higher than hoped, production lower, and, now, demand softening. Ford's electric version of one of the most popular vehicles in the world, the F150, saw production cutbacks of 50% in January due to decreasing US demand. New entry to the market Lucid has seen quarterly production (and shares) drop; and while Rivian production increased, its sales dropped roughly 10% from Q3 to Q4 of last year. In Europe, EV sales have climbed slightly, but more slowly than before, and Volkswagen and Mercedes have re-evaluated plans. Germany's discontinuation of subsidies likely contributed, though the continent's commitments to ending internal combustion engine (ICE) sales seem primed to force the market over time. Meanwhile, luxury EV sales are much stronger in the US than non-luxury options, suggesting that price remains a major factor. This makes sense, as EVs remain significantly more expensive than ICE options. So, the EV market in the US and Europe appears to be at a saturation point, and that saturation point appears to be largely tied to pricing (though other concerns, such as range anxiety, likely play a role as well). But not all EVs being manufactured globally are expensive.
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