Tesla, China, Charging Headaches And More: What To Expect From The EV Market In 2024
In the electric vehicle arms race, 2023 didn't go as anyone anticipated. Here's what could happen next.
Two things were unambiguously true about 2023: it was the best year of sales the electric vehicle market has seen yet. It was also the most chaotic, uneven, and challenging year to date for almost every car company investing in the transition away from fossil fuels.
So how can we expect 2024 to go? Barely two days in, and it's already clear that we could be in for an especially weird year when it comes to electric vehicle adoption.
Last year was supposed to be the takeoff point for EVs globally, the one where electric sales would begin permanently eclipsing internal combustion sales for good in the kind of predictable trajectory that finance departments prefer. In many ways, it actually was; we saw record EV sales in the U.S., China, Europe and elsewhere, with American sales alone hitting the 1 million mark in early December and worldwide adoption now close to 20%. (It was also a landmark year for hybrid vehicle sales, which is good news for the climate too.)
But the second half of 2023, in particular, wasn't so smooth. Many dealers reported their EVs were piling up on their lots, leading some automakers to challenge the many assumptions they made about what customers want and even reconsider the pace of their investments.
It's key to understand that despite the gloomy headlines, that situation didn't befall every automaker. Many are full speed ahead on electric cars, and the rest of the industry—not to mention the car-buying public—is coming around to the idea that this will be a transformation with a lot of ups and downs.
With all of that in our rearview mirror, it's time to look ahead to some stories that could define the year ahead on the electric front.