Ford Motor has decided to delay the production of two new electric cars and shift their focus to producing more hybrid vehicles. This change in direction is reflective of larger automakers, like General Motors and Mercedes-Benz, who are also rethinking their electric vehicle strategies due to slowing sales. The difficulty in making and selling electric cars profitably has led these companies to pivot towards hybrids, which are easier for consumers to adapt to and often offer better fuel economy.
Despite the overall growth in sales of electric vehicles, the pace has significantly slowed as automakers struggle to make these cars more affordable. Many early adopters willing to spend over $50,000 on a new electric car have already been reached, and the companies are still learning how to produce these vehicles and batteries at a lower cost. Consumer concerns over charging infrastructure and range anxiety have also contributed to the preference for hybrid models over purely electric ones. Ford plans to offer hybrid versions of all their models by the end of the decade and has adjusted their production timeline for electric vehicles accordingly.
The slowdown in electric vehicle sales has affected Tesla as well, with an unexpected decrease in sales reported in the first quarter of the year. Despite Ford’s 86 percent growth in electric vehicle sales, it still fell short of their initial targets, leading to adjustments in production and pricing. This shift in the industry marks a significant change from initial expectations of rapid consumer adoption of electric vehicles, highlighting the challenges automakers face in transitioning away from gasoline-powered cars towards more sustainable options.
