EVs confront the leap to the mass market

STORY: EVs confront the leap to the mass market

The past year has been sobering for investors who poured money into electric vehicle startups.

As interest rates rose and financial markets gyrated in 2022, shares deflated for many EV makers hoping to copy Tesla's success.

Rivian, which had a higher market value than Ford shortly after it went public in 2021, lost more than 70% of its value in the past year.

Electric van maker Arrival warned it could run out of cash in less than a year.

Shares in China's Xpeng lost more than 80% of their value.

The automobile industry is pouring more than $1 trillion into a revolutionary shift from combustion engines to cleaner, safer electric vehicles.

Tesla's surge to become the world's most valuable automaker had humbled previously reluctant, established automakers like Toyota and Volkswagen.

Starting in 2023, a wave of new electric vehicles from pickup trucks to middle market SUVs and sedans will hit the world's major markets.

The challenge for startups and established brands alike is persuading consumers to come along for the ride.

In China, EVs make up 21% of the market. In Europe, around 12%.

But in the United States, EV market share is only about 6%.

Industry analysts predict electric vehicles could account for a third of the North American market, and about 26% of vehicles produced worldwide by 2029.

Over the next few years, as many as 74 different electric vehicle models could become available in North America.

But the analysts warn fewer than 20% of them are likely to sell at volumes above 50,000 a year.

2023 and beyond could be decisive years for many of the new crop of electric vehicle brands.