There is a continuing uproar over decisions being made in Austin as a result of the electric vehicle community’s apparent outrage over Tesla’s recent disclosures.
The Tesla Model 2, which was meant to provide mass-market consumers with dependable, reasonably priced zero-emission mobility, may or may not come to pass. Elon Musk, the CEO of Tesla, refuted claims made by Reuters last week that the Model 2 had been discontinued. He revealed his intentions for Robotaxi hours later. The announcement may have, in a sense, confirmed the news wire’s claim. Musk continued by saying that Tesla would invest billions on creating the self-driving technology.
Not to be forgotten among all of this was Tesla’s dismal Q1 2024 sales, which further undermined investor confidence and the company’s stock price. Does this imply that the most valuable automaker in the world has abruptly lost its strength and bluster?
Liz Najman, the director of market analytics at Recurrent, a battery health and data start-up, told InsideEVs that “one bad quarter is just one bad quarter.” Given all of the news about the diminishing market for EVs, Tesla was probably expecting for a fantastic turnaround story. However, the current battle for car sales is upstream. Najman continued, “Telsa is not the only company having trouble.
Do you recall the period of gloom that followed a few poor quarters for EV sales last year? Despite this, 1.1 million EVs were driven onto American roads in 2023, setting a record for overall EV sales.
The Bloomberg New Energy Foundation predicts a robust year overall, despite the growth rate likely to decrease this year. This is partially due to general price reductions as well as the growing popularity of vehicles such the Ford Mustang Mach-E, Hyundai Ioniq 5, and Hyundai Ioniq 6.
Once deliveries start by mid-2024, the $34,995 Equinox EV is expected to lead the way for General Motors; sales of Bolt EVs are now declining to make room for a new generation of EVs based on the Ultium platform.
But the tale is not fully told by the new car market. Things are looking good for consumers if you look at used EVs.
“Telsas below $25,000 are currently available. Pointing to the used EV market, Najman remarked, “They’re just a few years old.”
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This year, Recurrent’s best used electric vehicle is the Model 3. It was discovered that while used Model Y sales are down 31% from the previous year, used Model 3s that are at least two years old are costing 27% less. According to Recurrent, 30% of all used EV postings are for less than $25,000, and 55% of all listings average less than $30,000.
The company thinks that this is a season of great offers that will make EVs affordable for a whole new group of people.”Our first thought is that those autos are simply turning over far more quickly. People are definitely trying to take advantage of the additional $4,000 tax credit, based on what we’re hearing in our community, Najman continued. “Many individuals who have been holding out for the right time to purchase an EV are
Everyone enjoys blaming Elon Musk for not being able to fulfill his promises. However, Najman stated, “The era of reasonably priced EVs is already here.
Tesla’s pricing war had a rippling effect in the industry, giving rivals a boost as well. Following Ford’s introduction of hefty discounts on the MY2023 inventory, the Mustang Mach-E has been flying off the shelves. Adoption rates are on the rise when the right price is offered, with assistance from state and federal tax incentives.
“Tesla is bringing affordable new and used EVs to the masses, for better or worse,” Najman stated. “The loss of the Model 2 need not bring us to despair.”