Hey, remember earlier this week when we raised concerns over flagging EV demand? Well, a more authoritative voice on the subject has now spoken: Elon Musk.
Driving the news: Tesla’s profits fell 44% last quarter thanks, in part, to vehicle price cuts. On the earnings call, Musk expressed worry over demand and said the company would wait to ramp up production at its new Mexican plant. Tesla shares fell by 9.3% on the bad news.
- Musk also said the long-awaited, much-memed Cybertruck (Tesla’s bid to take on the truck market) would be out for delivery next month, but warned it has a long road to profitability and that Tesla “dug [its] own grave” with such a hard-to-make product.
Why it matters: When the world’s leading EV automaker, which only makes EVs, needs to pump the brakes on production, it casts a long, concerning shadow over the entire industry.
- Other big automakers are tempering their EV output. GM is delaying the production of all EV pickup trucks at a Michigan plant until at least 2025, while Ford slowed its EV roll to focus on hybrids and is cutting shifts at the plant making its electric F-150.
Bottom line: EVs are crucial to meeting climate goals, but a host of economic and infrastructural concerns must be addressed before widespread adoption occurs. And, lest we forget, Canada has a huge (growing huger) economic interest in making that happen.—QH