After years of pumping cash into the sizzling electric-vehicle market, Tesla and other major automakers are facing a new dilemma: what to do when demand chills.
While the battery-powered vehicle market is still expanding, the pace of growth has slowed considerably. As a result, Tesla, the world¡¯s EV leader, and legacy automakers that had been spending at breakneck speeds to build their electric car businesses, are now taking a more cautious approach to investments.
Companies have collectively committed about $100 billion across North America to create electric cars that don¡¯t just appeal to luxury buyers and early adopters, but to the mass market. But high inflation and interest rates are making vehicle purchases difficult for everyday people, meaning it¡¯s hard for EV makers to win their business. Auto executives have said they¡¯re worried many consumers have hit their limit.
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