Electric cars’ Sales is Slowing
The slow growth in the sale of electric vehicles resulted in several car makers adjusting their production plans for EVs. Ford Motor also joined the trend by reducing its electric F-150 Lightning pickup truck production targets. They now plan to produce an average of 1,600 trucks per week in 2024, down from the previous target.
The high prices of electric vehicles, including the F-150 Lightning, and the availability and reliability of charging stations are some of the reasons for the dampened consumer enthusiasm. G.M., Rivian, and Ford are some of the companies scaling back their production plans for electric vehicles. Even Ford’s production plans for its electric SUV, the Mustang Mach-E, were revised.
Ford’s Chief Financial Officer, John Lawler, mentioned that the company is adjusting future capacity to better match market demand. Ford still predicts that production and sales of the Lightning will surpass 2023 levels, despite the reduced target. In 2021, more than 20,000 trucks were sold, a rise of more than 50 percent from 2022. Ford’s sales of all electric models also grew by 16 percent, to more than 62,000 vehicles.
Cost and charging infrastructure are barriers to the growth of electric vehicle sales. The price of batteries remains high, making some electric cars more expensive than comparable gasoline models. Ford raised the Lightning’s price soon after its introduction, which disappointed many customers. Additionally, the lack of charging stations is unnerving for potential electric car buyers, especially those without a place for a personal charger.
G.M.’s CEO, Mary Barra, emphasized the need to respond to demand and ensure the right products are available at the right time without overbuilding. Despite the industry’s ambition to expand electric vehicle production, the challenges with consumer demand and infrastructure need to be addressed.