Reaching The Finish Line Of The EV Race Is A Daunting Task, One That Some Won't Be Able To Accomplish

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For all those who are not Tesla Inc (NASDAQ: TSLA) or one of the biggest Chinese EV makers, the EV venture is wildly risky ride that makes profitability seem like mission impossible sometimes. Although Kelley Blue Book reported that EV sales skyrocketed 65% last year while automotive sales contracted 8%, the EV adoption is everything but fast as it entails hefty costs. For manufacturers, Tesla made it even harder by starting a price war at the beginning of the year, one that not many are able to survive, let alone win. Some Have Already Fallen Behind... In June, Lordstown Motors Corp (OTC: RIDEQ) filed for bankruptcy. To date, it has lost about 83% of its share price. Nikola Corporation (NASDAQ: NKLA) stock dropped more than 77% since its launch. Despite the attractivieness of their value propositions, these two players just do not have what it takes for the EV race. The Chinese EV Players Are Going Full-speed Ahead XPeng Inc. (NYSE: XPEV) is among the leading EV makers in China as it distinguished itself with its technology and innovation that includes developing advanced driver assist-systems. Li Auto Inc. (NASDAQ: LI) is a pioneer but its ONE SUV, a plugin hybrid addressed the consumers who had concerns about range anxiety, allowing the automaker to compete with XPeng and Nio Inc (NYSE: NIO). Nio has literally carved a niche for itself in the premium EV market with its SUVs and the ET7 luxury sedan. Nio also distinguished itself with its "Battery as a Service" model and battery swap technology focused on creating a lifestyle brand that offers experiences as opposed to just one that sells EVs. The Legendary Automotive Players Are Going Above And Beyond General Motors Company (NYSE: GM) will be commiting $27 billion in its electric and automonous future until 2025, as it aims to launch 30 EV models across the planet, fueled by its Ultium battery technology. GM is known for learnings from its lessons, so its EV plans go beyond passenger vehicles to include commercial vehicles and even electric air taxis, showing its aspiration to contribute to future of electric mobility. Story continues The world’s largest automaker by production volume, Toyota Motor Corporation (NYSE: TM) might have entered the EV race later than others but will be investing $13.5 billion into battery technology by the end of the decade as it aims for 40% of its global sales to be made of EVs by 2025. With its established global presence, manufacturing expertise, and the fact it is a brand known for its reliability, Toyota certainly has a shot of being among the EV leaders someday. The German automaker, Volkswagen AG (OTC: VWAGY) is aspiring to not only catch up to Tesla but also become a global leader in electric mobility by 2025. With its ambitious "Transform 2025+" strategy, Volkswagen aims to sell approximately 26 million fully-electric EVs by 2029. With its substantial resources and diverse portfolio, this aggressive approach to EVs can certainly push Volkswagen to become a dominant EV player. Ford Motor Company (NYSE: F) recently posted its second quarter revenue rose 12% YoY with net income nearly tripling to $1.9 billion. With about $30 billion of cash and more than $47 billion in liquidity, Ford has what it takes to fund its electric transition. Ford has also followed Tesla in lowering the price of its electric pickup, the Lightning, and it has exited areas where it was burning cash such as South America production and passenger segments in North America. After delivering strong second quarter results, Ford also raised its full-year guidance. Although ‘new’ as it was formed in 2021, Stellantis N.V. (NYSE: STLA) is a conglomerate formed by Fiat Chrysler Automobiles and PSA Group to reflect their EV commitment that entails an investment of €30 billion through 2025 in developing EV technology. Stellantis aims for 70% of sales in Europe and 40% in the US to be made by low emission vehicles by the end of the decade, while covering models from small city cars to performance vehicles. Electric Pickups 2023 has already been deemed as the year of the electric pickup. With Rivian (NASDAQ: RIVN) already having its R1T on the road, Tesla will be finally releasing its futuristic Cybertruck by the end of the year. Interestingly, Hyundai Motor Company (OTC: HYMTF) will be releasing its Santa Cruz pickup next year that will be equipped by revolutionary solar-powered technology by Worksport Ltd (NASDAQ: WKSP). Specialized in soft and hard-folding tonneau covers, Worksport will be making a customized SOLIS solar tonneau cover for Hyundai, with Santa Cruz combining the best from an SUV and an open-bed vehicle. Moreover, with SOLIS and its COR portable battery system, Worksport might be able to extend the range of electric pickups and help EV pickup makers uplevel their game with this minor addition as Worksport is known for making innovative technology affordable. Worksport announced that it will begin assembling its ‘made-in-the-USA’ SOLIS covers at its NY facility as soon as the improved COR battery system becomes market ready, that is once R&D is finalized. Recap EV sales are expected to rise 35% YoY this year, fueled by supporting policies and incentives both for consumers and manufacturers. Yet, even legendary automakers are missing deadlines with lagging production and startups are struggling with serious financial issues, including bankruptcy. The EV space is undoubtedly crowded and the competition is fierce. With Tesla having raised the bar high, performance-wise, not everyone who started their electric ‘engines’ will succeed to reach the finish line. DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice. Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better. This article Reaching The Finish Line Of The EV Race Is A Daunting Task, One That Some Won't Be Able To Accomplish originally appeared on Benzinga.com . © 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.