When Elon first brought EVs to the market…
There were a lot of naysayers and haters that made plenty of jokes at the South African’s expense.
A trillion dollars later…
And not many people are laughing at him now.
The success of Tesla forced the auto industry to make changes…
And almost every major company now has its own electric vehicle that it sells.
Even more…
There have been plenty of experts who have said that these cars would soon surpass Tesla – or at least grab a huge share of the market that is almost exclusively been Elon’s since 2009.
But that doesn’t seem to be happening…
Instead, Tesla seems to still be the only company standing on the mountain.
What’s going on here?
Is Big Auto doing something wrong?
Or has Tesla done something so right – that it can’t be touched?
Or is it something else?
Gather around for a tale of eco-dreams turned into dealer nightmares.
Picture this: EVs, those shiny beacons of green hope – are now lounging around in U.S. dealers’ lots – probably sipping virtual margaritas, because why not?
They’re hitting record numbers in their lazy siesta – and no, we’re not talking about a few extra Teslas (TSLA) missing their weekend drive…
We’re talking about a heap of EVs – almost double the amount from last year – all chilling out, waiting for someone to take them home.
Why, you ask?
Well, it turns out these EVs aren’t as eco-friendly as your neighbor with the “Save the Planet” bumper sticker would have you believe.
They only start earning their green stripes after they’ve hit the road for a while.
So, as of now, our environmental scorecard is looking a bit – let’s say – more than par.
But that can’t be the only reason American drivers giving EVs the cold shoulder, is it?
Well, when you add on headaches like the charging infrastructure being quasi-reliable and the driving range dropping faster than your phone’s battery on a cold day – it begins to make sense.
Plus, in this economy – buying an EV is like trying to buy a unicorn – expensive and somewhat mythical.
Meanwhile, carmakers are in a production frenzy…
Popping out new EV models like they’re on a factory line conveyor belt at Santa’s workshop.
They’re making so many of these cars – that dealers pleaded with Joe Biden to ease off the EV-loving pedal just to clear their bloated inventories.
Bloomberg – always the bearer of cheerful news – forecasts an even BIGGER slump in EV sales next year.
Shocking, I know.
So, for those who dabble in markets – here’s a nugget: the KARS ETF – fittingly named for this debacle – has dropped like a rock…
And the broader DRIV ETF? It’s trailing like a kid who lost his mom in a supermarket.
Sure – high interest rates, China’s economic nap time and the world’s geopolitical drama haven’t helped…
But when carmakers can’t live up to their own hyped promises – investors tend to turn as sour as milk left out in the sun.
As for the big picture?
Tesla, GM (GM) and Ford (F) are now pinching pennies – waiting for some sign of life in buyer demand before they commit to making more EVs.
They’re stuck between a rock and a hard place: slash prices to lure buyers or watch their profit margins deflate like a balloon.
Now, just because EVs are in a slump…
Doesn’t mean there isn’t a profit opportunity.
There’s always money to be made…
And GorillaTrades members will be among the first to know if one of these companies is worth the buy.
Why? Because our trading matrix is built on data and numbers – not speculation.
If there’s a profit play – the numbers will show it.
Which is why I’m asking you to consider becoming a member today.
With 2024 right around the corner – there’s not a better time to start getting recommendations from your friendly, neighborhood Gorilla.
Of course, if you’d rather do your own thing – that’s cool – just know we’re here if you need us.
Until next time – keep your eye on the EV market…
There could be a broader story at hand.
“Many things are improbable, only a few are impossible.” – Elon Musk