Bad Tidings For Tesla And Its Peers? 'We're In The Dead Of The EV Winter,' Says Gene Munster, As He Expects Growth To Collapse From 50% In 2023 To 5% This Year
Portfolio Pulse from Shanthi Rexaline
Gene Munster from Deepwater Asset Management predicts a slowdown in the EV industry, with growth rates dropping from 50% in 2023 to 5% in 2024. Ford and Tesla are pulling back on their EV investments, signaling an 'EV winter.' Despite challenges, Munster remains optimistic about long-term EV adoption.
August 22, 2024 | 8:39 am
News sentiment analysis
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NEGATIVE IMPACT
Ford is reducing its capital expenditure on EVs from 40% to 30%, indicating a pullback in EV investment and contributing to the predicted slowdown in EV growth.
Ford's reduction in EV investment is a clear signal of a strategic shift, which could impact its stock negatively in the short term as it reflects a cautious approach to EV growth.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
General Motors, like Ford, is scaling back its EV ambitions, contributing to the broader industry slowdown.
GM's decision to scale back EV ambitions is part of a broader industry trend, which could negatively impact its stock as it reflects a cautious stance on EV growth.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Tesla is delaying its Illinois battery production factory, contributing to a predicted slowdown in EV growth. Despite this, Tesla remains committed to its plans.
Tesla's delay in battery production is a significant factor in the predicted EV growth slowdown. This could negatively impact Tesla's stock in the short term as it signals potential challenges in meeting production goals.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The KraneShares Electric Vehicles and Future Mobility Index ETF rose 2.06%, reflecting investor interest despite the predicted EV industry slowdown.
Despite the predicted slowdown, the rise in KARS ETF suggests that investors still see potential in the EV sector, possibly due to long-term growth prospects.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50