It seems like every week there is a new company that produces electric cars. Are EVs so easier to make compared to ICE cars?
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It’s actually pretty difficult for EV companies to make money on BEVs. As far as I know, only Tesla & BYD actually have a positive profit margin on the EVs they sell. Everyone else is hemorrhaging thousands (even tens of thousands) of dollars per unit sold. Ford, for example, plans to make money on their EVs only after 2025. They’ll be in the red till then. All the major global legacy automakers are struggling to scale up and you could see some of these go out of business in the next few years. Japanese giants like Toyota, for example, are very far behind in the race. So no, scaling up production of EVs is actually quite a difficult process, and tough for the traditional ICE automakers to pivot.
I think the substantial improvements and maturation in battery tech along with charging infrastructure, have allowed EVs be essentially equal to ICE cars. Coupled with government incentives in major car markets, and EVs are seeing massive growth. This is especially true in China where there’s almost 100 EV companies competing and by the end of this year of 2023, EVs will achieve something like 30% market penetration.
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