With growing pressure from governments for climate improvement and a faster green transition, automakers are increasingly focusing on producing electric vehicles that could help meet the climate goals of many countries, including the United States. United.
Let us find out in this article the growth prospects of the electric car market in the United States for 2023, the challenges that the industry is facing, as well as the factors that could support the future of this booming industry. Also find our focus on Tesla shares and Rivian shares.
State of the electric car market in the United States in 2023
According to a rapport du Bureau of Labor Statisticsthe electric vehicle market has witnessed significant growth in recent years and is expected to continue expanding rapidly over the next decade.
In the United States, sales of electric cars have increased from just 0.2% of total car sales in 2011 to 4.6% in 2021. The number of electric cars on the road has increased from around 22,000 to just over 2 million during the decade 2011-2021, thanks in particular to growing environmental concerns, a greater choice of vehicles and better battery capacity, among others.
According to Grand View Research, the electric vehicle market in North America was dominated by Tesla, General Motors, Toyota, Nissan and Volkswagen in 2020. These players are still important today in the region.
This is especially the case as the Inflation Reduction Act (IRA) passed in 2022 supports the production of electric vehicles in the United States. This law also grants aid allowing Americans to benefit from $7,500 if they buy a new electric car.
After selling 810,000 electric vehicles in 2022, the United States expects a new record with 25% growth in 2023, for sales exceeding one million vehicles.
Price drops that weigh on the Tesla share which falls on the stock market
Tesla vehicle production appears to be on a positive streak, having reached a new record of over 440,000 units produced in the first quarter of 2023. This period also saw a significant increase in Tesla sales with over 422,000 vehicles delivered, this which represents an increase of 36% compared to the same period of the previous year.
Even so, Tesla’s net revenue was down 24% in the first quarter of 2023 from a year ago, falling to $2.51 billion (73 cents per share) from $3.32 billion (95 cents per share). stock).
One of the reasons for this decrease is the fall in Tesla’s margins because of the price cuts applied by the company in 2022, but also in 2023. According to Reuters, Tesla reportedly lowered prices by up to 20% globally last year. Tesla has also decided to reduce the prices of all its electric vehicles in the United States, three times already in 2023.
Other factors have also weighed on the company’s margins such as the increase in the cost of raw materialslogistics and warranties, as well as declining revenue from environmental credits and underutilization of new factories, according to Tesla.
Although Tesla shares rebounded in 2023 (+48.63% at the time of writing) after a disastrous 2022 in which theaction Tesla lost about 70%, especially due to the fall of technology companies, the value of Tesla shares is down more than 45% year on year.
Tesla price: Tesla stock price on the stock market
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Rivian: A stock that has lost more than 90% since its IPO
Ongoing supply chain issues appear to be a major challenge for US electric vehicle company Rivian, which issued its first earnings warning during the week of April 17, 2023.
Rivian’s stock price sank at the time of the announcement. The Rivian share loses more than 30% in 2023. While it had made a IPO rather successful in November 2021 (the most important of the year), the action did not resist the fall in tech stocks and the rise in interest rates among others, since it has lost more than 90% since .
Rivian price: Rivian share price on the stock market
What to expect from the electric car sector in the United States in 2023?
The electric car sector in the United States in 2023 should benefit from certain growth drivers. The North American market for such vehicles is expected to grow at a compound annual growth rate of 37.2% between 2021 and 2028 to reach $147.60 billion by 2028 according to Grand View Research.
The US government’s ambitious plans to accelerate the adoption of electric cars and limit polluting emissions from automobiles, including by investing in charging infrastructure and offering financial incentives to consumers who buy electric vehicles, should indeed support the sector. in 2023.
Additionally, the growth of the electric vehicle market is expected to be driven by the various cost advantages they offer over “conventional vehicles” such as gasoline.
Not to mention that the expected drop in battery prices in the United States could increase the margins of companies operating in this market or allow them to lower their prices to attract new customers. According to the International Council on Clean Transportation, the price of batteries in the United States is expected to rise from $11,500 in 2018 to $8,000 in 2025.
However, the electric vehicle market will also face many challenges such as rising production costs, supply chain issues, component shortages, vehicles offered at an overall higher price than classics or still high inflation that impacts customer choices.
Source des images : Freepik
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2023-04-27 15:25:37
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