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Following the underwhelming launch of its Cybertruck electric pickup, Tesla is now bracing for a slowdown in sales electric vehicles (EVs).
In a recent financial report, Tesla CEO Elon Musk cautioned that the company needs the economy to stabilize before considering further production expansion.
This move aligns Tesla with General Motors and Ford, both of which have lowered their expectations for future EV demand. Reuters reports that Tesla’s hesitancy to expand its production plans for a Mexico factory is due to concerns over potential customers’ ability to afford its vehicles and economic uncertainty. Similar moves to lower production expectations have been seen across the auto industry.
GM delaying the production of Chevrolet Silverado EV and electric GMC Sierra pickup trucks, and Ford considering the reduction of shifts at its electric F-150 Lightning pickup truck plant.
This caution over slowdown in sales electric vehicles also affects other EV startups, such as Lucid, which reported a 30 percent drop in production and is unlikely to meet its 2024 target.
GM Warns Union Demands Could Hurt Jobs:
The United Auto Workers union has been on strike at Ford, GM, and Stellantis plants for over a month, with negotiations at a standstill. GM executives have now warned that the union’s demands could have devastating effects on jobs at the company. Gerald Johnson, GM’s executive vice president of global manufacturing and sustainability, called the company’s offer “historic” in a video message. GM has proposed a 20 percent wage increase, raising most salaries to $39.24 per hour. However, the company highlights the need for profits to invest in its future, implying that it may not be able to meet all the demands of the union. Despite this, GM maintains that it will continue bargaining in good faith to reach an agreement.
Suzuki Falls Behind in Emissions Cleanup:
Environmental organization Greenpeace recently conducted a study to determine which global automakers are taking significant steps to reduce emissions. The study ranked automakers based on their adoption of sustainable powertrain options, including hybrids, electric vehicles, and hydrogen power. Surprisingly, Suzuki, along with Japanese automakers Toyota, Honda, and Nissan, ended up at the bottom of the list. While Japanese automakers have been leaders in making internal combustion engines more efficient with small batteries and electric motors, they have been slower to fully embrace electric vehicles. Greenpeace criticized Suzuki for its lack of electrification efforts. Stating their decarbonization and electrification performance is almost nonexistent compared to other automakers. Mercedes-Benz ranked highest in the study but still has room for improvement.
Ford Recalls More Mustang Mach-Es:
Ford has issued another recall for its all-electric Mustang Mach-E due to power loss issues. The recall affects Mustang Mach-E and Mustang GT models equipped with extended-range batteries and affects over 34,000 vehicles from 2021-2022. The problem stems from faulty battery pack connectors, which can overheat and fail. This is the second recall related to this issue, following a previous recall for nearly 50,000 Mustang Mach-E models in 2022 to fix battery circuit issues. Ford is offering pick-up and delivery services, as well as loan vehicles, to make the repair process easier for affected customers. Customers have been advised to limit aggressive acceleration and use DC Fast Charging only when necessary.