As technology progresses, and more carbon emissions regulations come into place, car companies are scrambling to produce their own electric vehicles. California wants cars to be fully electric by 2035, and many other countries and states, are soon to follow around the world. Companies realize that as the electric car market grows, they must adapt to the consumer’s choice. Otherwise they may face financial scrutiny.

Markets and Competition

Currently Tesla leads the race in electric sales. Some entities that traditionally sold Diesel/Gas powered cars are now directing all of their interests toward electric cars. Ford and Volkswagen are scrambling to build their own electric cars before it’s too late. While other companies, such as General Motors and Nissan struggle to find buyers for their electric cars. However, several entities created deals with each other, in order to facilitate the electric car market and ensure competition- companies such as Lucid Motors Rivian and NIo.

What do companies have in-store for the future?

When Ford released the Ford Mustang Mach-E, they joined a list of companies who are rerouting their research and resources towards electric vehicles. However, Ford is only able to produce the Mustang Mach-E due to a deal with Volkswagen, that allowed Ford to use Volkswagen’s electric platform. It’s a great example of how original car corporations are adapting to this new market. Due to Volkswagen’s research, they scrapped a great deal of capital, which gave them the ability to create luxuries electric cars which will be affordable. CNN Business has predicted that Volkswagen will dominate the Electric Car Market by 2025.

Another example of companies working together is General Motors and Nikola. General Motors provides the fuel technology, while Nikola will manufacture the electric pickup trucks. Despite this, not all companies are able to drop their investments in gas, to focus on electric. It is a long and careful process. Which is why newer companies, such as Lucid Motors, could benefit immensely and emerge as a market leader.

In the future we can expect many variations of electric cars as companies compete for customers. This competition can benefit the consumer in the long term. Due to electric cars becoming cheaper and far more efficient, which may swing people into the direction of electric cars.