13 December 2023

General Industry Update

The EV market is growing, but the pace has slowed, with inventory accumulating and challenges in appealing to the mass market due to pricing and infrastructure concerns.

At the start of the year, dealers had 52 days’ supply of both EVs and internal combustion engine (ICE) vehicles. Yet, by October, EV supply was up to 97 days’ worth of inventory, while ICE supplies remained between 52 and 58 days. And according to new figures released in November, the time to sell an EV in the U.S. doubled between January and August.1

As a result of this slowdown, major EV automakers, including Tesla, are adopting a more cautious investment approach. Despite a collective commitment of about $100 billion for North American EV production, Tesla’s CEO Elon Musk acknowledges the need to make EVs more affordable, citing customers who are squeezed by inflation, elevated interest rates, and high vehicle prices that impede consumer adoption. Tesla announced it is contemplating delaying a new $1 billion plant in Mexico.2

Likewise, Ford Motor is dialing back some of its plans for a $3.5 billion battery plant in Michigan due to the slowdown. The company remains optimistic about EVs but acknowledges slower adoption than anticipated, alongside rising labour costs and internal cost-cutting measures. Despite the setbacks, Ford emphasizes its commitment to licensing technology domestically to bolster the U.S. EV industry.3 GM has also pushed back its plans for expanding electric pickup truck production.4

But that doesn’t mean innovation isn’t still happening in the sector. To address “charging anxiety” amongst EV drivers (and prospective drivers), startups are developing mobile chargers that will come to you when your EV needs a charge.

Such units range from sleek robots like EV Safe Charge’s ZiGGY, designed for reserved parking spaces, to Lightning eMotors’ Lightning Mobile, which, at a hefty 9,900 pounds and over $300,000, serves as a portable generator, accommodating up to four vehicles simultaneously. Lightning eMotors notes increased demand, especially on the West Coast. Even AAA has introduced a roadside charging assistance program, dispatching mobile chargers in 24 cities.

While these mobile chargers offer interim solutions for charging deserts and emergencies, experts anticipate their demand may wane as public charging infrastructure improves, making them a transitional measure until the network is fully built out and EV drivers trust its availability.5

Company Specific Updates

Rivian Automotive Inc

Rivian announced it will begin offering leasing options for its R1T electric pickup in 14 U.S. states. This move precedes the anticipated launch of Tesla’s Cybertruck. Rivian aims to attract customers by experimenting with leasing methods as the overall EV market experiences signs of cooling. The leasing program, initiated in states where Rivian vehicles are popular, aims to make the high-priced R1T more accessible to consumers.

Source: https://tcrn.ch/3RFQRh8

Leasing has become a preferred option for prospective EV buyers seeking a cost-effective trial period. Rivian follows in the footsteps of rivals Tesla and Ford, which both offer leasing options for their EVs. As part of its strategy to expand its customer base before the release of Tesla’s highly anticipated Cybertruck, Rivian has addressed production challenges and build quality issues, and plans to introduce a more affordable R2 range alongside its existing R1T pickup and R1S SUV.6

Lucid Group

Lucid Group strategically reduced prices on its Air luxury sedans for the month of November, citing fierce competition and decreased demand for EVs. This move is part of the ongoing EV price war in the industry, with Tesla leading the charge by repeatedly lowering prices to maintain market share against more affordable electric alternatives.

Source: https://bit.ly/48ahQH0

Lucid’s price cuts include the Air Touring model reduced to $87,500 from $95,000 and the Grand Touring by $10,000 to $115,600. The Air Pure’s all-wheel drive version is now priced at $74,900, down from $82,400, while the rear-wheel drive Air Pure remains unchanged at $77,400. This November pricing strategy aims to bolster sales amid industry challenges. Lucid previously adjusted prices in August and has relied on financial support from Saudi Arabia’s Public Investment Fund to maintain liquidity amid the EV slowdown.7

CARS ETF: Investing in Future Cars, Driving Our World Forward

The auto industry is undergoing the biggest transformation in generations and there is a growing demand for ways to invest in this industry.

The Evolve Automobile Innovation Index Fund (TSX Ticker: CARS), CARS ETF, is Canada’s first automobile innovation ETF. CARS ETF takes a diversified approach to invest in the development of electric cars, self-driving cars, and automobile innovation, including in some of the world’s leading manufacturers and automobile companies. CARS ETF is a great way to gain access to the future of the automobile and shift your investments into gear.

For more information on the Evolve Automobile Innovation Index Fund or any of Evolve ETF’s lineup of exchange-traded funds, please visit our website or contact info@evolveetfs.com.

Portfolio Strategy and Activity

For the month, Alfen NV made the largest contribution to the Fund, followed by ams-OSRAM AG and Fluence Energy Inc. The largest detractors to performance for the month were Fisker Inc, followed by ams-OSRAM AG and FREYR Battery.



  1. Ferris, R., “Why dealers say EV sales have slowed,” CNBC, November 1, 2023; https://www.cnbc.com/2023/11/01/why-dealers-say-ev-sales-have-slowed.html
  2. Welch, D., “Cooling EV Sales Have Tesla, GM and Ford Rethinking Investments,” Bloomberg, November 4, 2023; https://www.bloomberg.com/news/articles/2023-11-04/cooling-ev-sales-have-tesla-gm-and-ford-rethinking-investments
  3. Wayland, M., “Ford to scale back plans for $3.5 billion Michigan battery plant as EV demand disappoints, labor costs rise,” CNBC, November 21, 2023; https://www.cnbc.com/2023/11/21/ford-scales-back-ev-battery-plant-in-michigan.html
  4. Welch, D., “Cooling EV Sales Have Tesla, GM and Ford Rethinking Investments,” Bloomberg, November 4, 2023; https://www.bloomberg.com/news/articles/2023-11-04/cooling-ev-sales-have-tesla-gm-and-ford-rethinking-investments
  5. Pashankar, S., “These Electric Vehicle Chargers Will Come to You,” Bloomberg, November 4, 2023; https://www.bloomberg.com/news/articles/2023-11-04/these-electric-vehicle-chargers-will-come-to-you
  6. Carter, T., “Another sign that the future of EV buying is leasing: Rivian leases its $73,000 truck,” Business Insider, November 28, 2023; https://www.businessinsider.com/rivian-electric-r1t-truck-available-for-lease-future-of-evs-2023-11
  7. Kachwala, Z., “Lucid cuts prices of electric sedans for limited time amid EV price wars,” Reuters, November 3, 2023; https://www.reuters.com/business/autos-transportation/lucid-cuts-prices-electric-sedans-limited-time-amid-ev-price-wars-2023-11-03/
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Tags cars etf  electric cars  electric vehicles  EV  ev industry slowdown  ev market  ev price war  Ford  lucid group  nvidia  rivian  Tesla