Electric Vehicles: Pickup or Backed Up?
By Greg Kahn
Emerging Tech Exchange
Founder & CEO
Published on July 18, 2023
Tesla’s “Cybertruck” will not be confused with a Dodge Ram. But will it sell?
(Photo credit: Tesla)
The electric future is the only road the automotive industry can take. But the driving growth of EVs is starting to slow down. So expect some shifts in where the growth and advances are expected to come from.
With that in mind, it was inevitable that the initial EV market leader, Tesla, would have to play catchup to the established car makers. Additionally, it’s not surprising that pickup trucks would be where the next EV sales wars would be centered.
On the plus side, it’s a sign the industry sees signs of mainstream acceptance. On the down side, it means the main players will continue to struggle in the transition from gas-powered vehicles to electric.
I’ve been peering into the EV future for a long time. But I’ve been frustrated with the segment’s advancements lately. The lack of available charging stations has been a persistent problem. But a recent agreement among Tesla and the major car manufacturers could solve that hurdle at least. Still, it’s worth pointing out the other roadblocks facing EV.
Growth speeds are slowing
EVs still represent a small 7.2% of new car sales. But the growth continues to be a striking 50%, as 557,330 units rolled out of dealerships in the first half of 2023. Meanwhile, conventional cars saw sales rise a respectable 10% during the same period.
Although EVs continue to expand their market share, the growth rate of EV sales has slowed compared to the first half of 2022’s 71% jump. The current year's growth rate of 50% falls short of the 65% growth recorded for the entirety of 2022, according to industry analyst Motor Intelligence.
When inventory is backed up, automakers are naturally spurred to cut prices in efforts to boost demand for EVs.
So after four years of waiting, Tesla’s roll out of the “cybertruck” may just be rightly timed. Ford’s F-150 Lightning pickup got a successful head start last year, while vehicle startup Rivian Automotive has said it’s working harder to keep up with demand for its R1T truck over the past few months.
Being a pioneer brand like Tesla means constantly balancing the advantages and challenges of a first-mover.
Parking in the connected garage
The long-awaited release of the Tesla pickup could inspire more consumer excitement about EVs. And price cuts may be enough to offset inventory target shortfalls. But my worry in all this is what it means for innovation in the automotive space.
For years, the garage was viewed as the entry point to the connected home. A number of tool companies, like Stanley Black & Decker, were even starting to vie for the “connected garage.”
The relationship between the connected garage and the connected home is often overlooked. Transforming the garage into a highly connected space can be such a winning step for all parties concerned, from car companies, to toolmakers, to home entertainment system providers.
This interplay between the garage and the home has the potential to reshape how people perceive and engage with smart technologies, solar power, and electric mobility, bridging the gap between the two and propelling the adoption of both connected home solutions and electric vehicles.
So as EV sales sag, does this mean that companies like Roku can make a play for the connected car as it moves from the living room to the rest of the house? Pull over and send me a comment with your expectations.
Greg Kahn
Emerging Tech Exchange
Founder & CEO
