EV slowdown by GM and Ford would benefit Tesla, says Ark Invest’s Cathie Wood

A slowdown in sales is leading to a clampdown on Electric Vehicle (EV) production by big automakers such as Ford and GM and it might eventually benefit Tesla, says Ark Invest’s Cathie Wood.

In an interview with Bloomberg, Wood mentioned she expected the EV makers to rise into the category and ramp up their production plans for more electric vehicles.

However, she later said that no such things are happening, instead, these automakers are scaling down their EV plans.

Cathie spots that such rescalings are happening due to the slowdown in EV demand.

For example, GM planned to produce 400,000 EVs by mid-2024 but the company also pushed back this target citing a slowing EV market.

Moreover, Electric pickups including the Chevrolet Silverado and GMC Sierra in suburban Detroit are also planned to be delayed by a year.

On the other hand, Ford is cutting down the production of the F-150 Lightning pickup truck to 1,600 from 3,200 a week.

Ambitions in other EV productions including batteries are also taking a hit by these new views and fear of losing the money in new units.

Data from third-party analysts reveals that 869,000 EVs were sold in the US in the first 10 months of 2023. It marks a 56% year-on-year increase as compared to 2022 and also a decline as compared to two years earlier.

Meanwhile, Cathie thinks that the slowdown in EV efforts from GM and Ford would only turn into a benefit for Tesla, the largest EV player on the planet.

“The fact that they’re pulling back means there’s more share for Tesla and others who chose to go for it,” she said.

(source)