Sandy Kravitz
July 17, 2023
As the second quarter of 2023 comes to a close, a trend is emerging in the automotive industry: electric vehicles (EVs) are not surging ahead in sales as expected, especially among legacy automakers. This is evident in the case of Porsche, which, despite seeing gains in nearly every model in its lineup, has sold almost 900 fewer Taycan electric sedans compared to the same period last year, marking a drop of approximately 35%.
This trend indicates that we are "crossing the chasm" in terms of EV adoption, a term coined by business author Geoffrey A. Moore. This phrase refers to the transition from the early adopter phase to the mainstream market. We are currently in a sort of no-man's land between EV enthusiasts and regular people who are simply looking for a better car.
Several factors contribute to this situation. For one, production constraints are still a significant issue. Battery cell supply is bottlenecked, and some automakers, like Stellantis, have yet to release an electric vehicle in the United States.
Another factor is the recent shift in charging standards. Until recently, the Combined Charging System (CCS) was seen as the standard that all legacy automakers would follow. However, in a surprising turn of events, major players like Ford, General Motors, Rivian, and Mercedes have switched to the North American Charging Standard (NACS), which is essentially Tesla's plug. This move indicates a recognition among legacy automakers of the need for a robust charging infrastructure to encourage more people to adopt EVs.
However, we are currently in a lull. Sales of legacy EVs, such as the Ford Mustang Mach-E, the F-150 Lightning, and GM's Bolt, are not exploding. In fact, GM's best-selling electric car, the Bolt, is being discontinued, and its successor is far from reaching dealer lots.
The good news is that the future looks promising. Mainstream battery technology is set to advance rapidly, and the biggest EV producers will soon have a better charging network integrated into their vehicles. However, these changes will not happen overnight. It will likely take months, if not years, for the dust to settle around the current state of electric vehicles.
In the meantime, thousands of potential buyers are waiting on the sidelines. Until it becomes a no-brainer to purchase an EV, many consumers will keep their wallets closed. As we navigate this transitional period in the EV market, it will be fascinating to see how automakers adapt and innovate to win over the mainstream market. https://www.thedrive.com/news/were-finally-crossing-the-chasm-with-electric-vehicles
