“Tesla’s Twilight” and a Mismatched Supply-Demand Scenario in the EV Market

A recent report by Cox Automotive highlights a gap in the EV market: rising inventories without matching demand. Notably, only 31% of the surveyed dealers see EVs as the future, compared to 53% of consumers. Dealers are still skeptical about EVs proving themselves in the market, which signals that they may not be fully prepared for this transition.

This points towards a significant issue in the EV industry: an imbalance between enthusiastic consumer interest and hesitant dealer preparedness. As the inventory of EVs soars, the market supply struggles to catch up, hinting at overproduction. On the other side, the report highlights a lack of adequate dealer training for selling and servicing EVs.

The role of Tesla, the market leader, seems paradoxical here. Despite its heavy discounts and increasing inventory, Tesla’s dominance is not yet translating into overall EV market growth. The ‘Tesla twilight’ might be an overstatement but it underlines the need for a strategic rethink in the industry.

Milestone Global Development CEO James believes, it’s crucial for automakers and dealers to align their strategies better with market realities. While continued investment in EV technology and infrastructure is necessary, matching production volumes with genuine consumer demand could help prevent wasteful overstocking. Moreover, comprehensive training of dealers is essential to ensure they’re as prepared and enthusiastic as the consumers they’re serving. Effective policy incentives should also be evaluated to make EVs more affordable and appealing to a broader range of consumers.