The trend: Automakers are laying off employees around the world, in part because of lackluster EV sales. Ford, General Motors, and Stellantis are also facing competition in China from Chinese auto manufacturers like BYD and the Geely Group, sharply cutting into their profits.
Our take: Electric vehicles haven’t been the money-maker automakers were hoping for. Their high costs—the Ford Mustang Mach E is the least expensive of these automakers’ EV stocks, at $41,990—paired with range anxiety have left consumers wanting.
A leaner workforce will help automakers short-term, but to compete in a crowded market, they need to lower sticker prices to entice customers looking for value. Two solutions to boost sales could be adding inexpensive standard features that feel like luxuries or cutting unnecessary features to appeal to those looking for a simple daily driver.
The unknown factor: President-elect Donald Trump. Until Trump takes office, automakers are in a holding pattern as they wait to see if he enacts tariffs on imported goods or eliminates the EV tax credit. Both would have a significant impact on auto sales.
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