Tesla, General Motors, and Ford have reportedly all hit the brakes on electric vehicle (EV) production, citing concerns of economic uncertainties fears of a slowdown in EV demand.
On Wednesday, Tesla joined General Motors and Ford in being cautious about expanding EV production capacity, with the company’s CEO Elon Musk saying he was worried that higher borrowing costs would prevent potential customers from affording Tesla vehicles, according to a report by Reuters.
“People hesitate to buy a new car if there’s uncertainty in the economy,” Musk reportedly said on a post-earnings call. “I don’t want to be going into top speed into uncertainty.”
Musk also mentioned that he wants to wait and see how the economy goes before ramping up Tesla’s planned factory in Mexico.
Musk’s comments come after Tesla reported disappointing quarterly results. As Breitbart News reported today:
Forbes reports that Tesla’s financial performance in the recent quarter didn’t meet the industry’s expectations. The electric vehicle titan, led by Elon Musk, grappled with slowing growth, registering sales of $23.4 billion, which fell below the consensus analyst forecasts of roughly $24.2 billion. The earnings per share also stumbled, coming in at $0.66 per share, contrary to the estimated $0.72 per share.
The company’s vehicle deliveries also faced a downturn. Tesla reported delivering 435,059 vehicles during the period, marking it as the second-highest total ever, but it was a step down from the previous quarter and didn’t meet analyst expectations.
The Tesla CEO’s comments come after other automakers expressed their concerns, with GM saying it plans to delay production of Chevrolet Silverado and GMC Sierra electric pickup trucks by a year, citing a flattening demand for EVs.
Meanwhile, Ford said it plans to temporarily cut one of three shifts at the plant that builds the company’s electric F-150 Lightning pickup truck. Over the summer, the automaker also reportedly slowed its EV ramp-up, focusing instead on commercial vehicles and hybrids.
Breitbart News previously reported that Ford expects to lose $4.5 billion on EVs this year:
The company’s EV division, called “Ford Model e,” has already lost about $1.8 billion so far this year. The projected loss of $4.5 billion reportedly stems from slower-than-expected adoption of the new battery-powered vehicles.
The automaker is also pushing out its production targets, and expects to hit an annual production rate of 600,000 units a year by next year. Ford had initially hoped to reach that target by the end of this year.
Meanwhile, EV startup Lucid reported a near 30 percent drop in third-quarter production on Tuesday.
These concerns regarding slowing demand for EVs reportedly come as automakers grapple with supply chain constraints that have ruined their production plans.
In an attempt to stop EV demand from dwindling, Tesla has aggressively slashed prices, forcing other companies to follow suit.
“If interest rates remain high — it’s that much harder for people to buy the car. They simply can’t afford it,” Musk said.