Electric car industry "explodes" but only 4 companies are profitable

Video: Electric cars vs gasoline cars: Which car is more "painful to the wallet"? (Source VTV24)

A recent survey shows that only four pure electric car brands in the world are profitable, while most other companies are still sinking in losses.

According to data from Rho Motion, a company that analyzes and forecasts trends in the energy and automotive industries, Tesla is leading the electric vehicle industry in terms of profit margins at 7.2% in 2024. However, this figure has decreased compared to 2023. Next is BYD - the Chinese "electric vehicle giant" with a profit margin of 6.4% and on the rise. If this trend continues, it is possible that BYD will soon surpass Tesla in terms of profitability.

BYD – China's electric vehicle giant has a profit margin of 6.4% and is on the rise.

One of the factors that helped Tesla and BYD achieve profitability is the consistency in production strategy and scale expansion, thereby significantly reducing production costs and increasing competitiveness.

The remaining two names on the list of profitable pure electric carmakers are Li Auto and Seres Group. Both are Chinese brands.

In addition to the four profitable EV companies , several other EV makers are also approaching break-even. For example, Zeekr, a brand owned by China’s Geely Group, currently has a profit margin of -8.5% but sales are on the rise, signaling a more positive future. Xpeng and Leapmotor are also closing the gap to profitability, with both losing more than half of their 2023 losses.

One of the factors that helped Tesla and BYD achieve profitability is consistency in manufacturing and scaling strategies.

Nio, one of the most notable names in the Chinese electric vehicle market, is still in dire straits. Its 2024 profit margin is -30%, indicating it still has a long way to go before it can reach profitability.

Notably, Tesla is now the only non-Chinese pure electric carmaker to be profitable. Other Western brands like Polestar and Rivian have yet to break even, although both have significantly cut their losses by 2024.

According to data from Rho Motion, Lucid sees a loss of -374% in 2024, an improvement from over -500% in 2023.

At the bottom of the list in terms of profits is Lucid Motors, an American luxury electric carmaker. According to data from Rho Motion, Lucid recorded a loss of -374% in 2024, an improvement from the more than -500% loss in 2023, but has yet to show clear signs of recovery. However, strong support from Saudi Arabia is helping Lucid maintain operations despite the prolonged losses.

Source: https://khoahocdoisong.vn/nganh-cong-nghiep-oto-dien-bung-no-nhung-chi-4-hang-co-lai-post269488.html