Tesla is lapping Germanys automakers in the global EV race
Summary
In Europe’s biggest economy, inflationary pressures, a dearth of skilled workers and high energy prices are adding to the structural challenges posed by the EV shift. VW, BMW and Mercedes dominated combustion-car sales in the world’s biggest auto market for decades, but recently have fallen behind Chinese brands that have been better at producing affordable EVs with technology and software geared to local tastes. BYD meanwhile is steering clear of the U.S. market because of trade barriers, and several smaller Chinese EV startups may not survive the industry’s price war. Plans by the Germans to introduce EV-focused platforms around the middle of the decade to lower the cost of their electric cars and equip them with new technology could alter the dynamic. Europe’s largest automaker recently bolstered its rolling five-year spending plan to 180 billion euros, with more than two-thirds going to software and EVs.