Does the EV Industry Have a Truck Problem?
There's a truth in Detroit for Ford Motor Company (NYSE: F) and General Motors, and that's that trucks are king. The dirty little industry secret, if you can call it a secret, is that full-size trucks cost only marginally more to produce than a passenger car, yet the former can sell for two to three times as much.Full-size truck sales are the backbone of Detroit automakers, but as the industry transitions to electric vehicles the scene may be set to change. In fact, the EV industry might have a truck problem, and that would be horrible news for auto investors.Long, long ago Tesla (NASDAQ: TSLA) CEO Elon Musk essentially mocked stereotypical trucks noting their stale design. Perhaps that's why the young EV maker swung for the fences with the Cybertruck's controversial design.Continue reading
There's a truth in Detroit for Ford Motor Company (NYSE: F) and General Motors, and that's that trucks are king. The dirty little industry secret, if you can call it a secret, is that full-size trucks cost only marginally more to produce than a passenger car, yet the former can sell for two to three times as much.
Full-size truck sales are the backbone of Detroit automakers, but as the industry transitions to electric vehicles the scene may be set to change. In fact, the EV industry might have a truck problem, and that would be horrible news for auto investors.
Long, long ago Tesla (NASDAQ: TSLA) CEO Elon Musk essentially mocked stereotypical trucks noting their stale design. Perhaps that's why the young EV maker swung for the fences with the Cybertruck's controversial design.
