Stuck in the middle: EV makers' existential crisis

It’s been a while since I’ve written about EVs but that’s not because the sector has become less interesting. That’s because there has been really strong competition from the political sector. But this week I saw several interesting reports on EVs and I’m afraid they are not at all optimistic.

The first report, by Reuters, came out on Monday and was headlined Electric vehicle makers burning cash, slammed by sky-high costs. How unfortunate for the “Low-carbon is low-cost” mantra when the companies working in that low-carbon area begin to admit they are not so low-cost.

In fact, EVs are not just not low-cost. Their costs are “staggering”, per Reuters, which cited the latest financial reports of several EV makers such as Rivian and Lucid Group.

By the way, remember the stock market hype around EV makers and how just a couple of years ago — even a year ago — it was enough for a company to say it manufactures EVs to see its share price soar like an eagle when it lists? Well, this no longer seems to be the case.