Lot full of Teslas
Sean Cate
Sean Cate
June 14, 2024 ·  4 min read

Picture Reveals Why The EV Market is in Big Trouble

A recent picture of a parking lot filled with unsold Teslas has cast a spotlight on the electric vehicle (EV) market, revealing a less-than-ideal situation for manufacturers. This image, which you will see near the end of the article, highlights a series of challenges facing the EV sector, from declining sales to price cuts and infrastructural issues. Let’s explore the current state of the EV market, its rapid rise, the emerging difficulties, and future projections.

The Boom of the EV Market

Cars parked in front of Tesla HQ
Credit: Pexels

The EV market has seen massive growth over the past decade. In 2023 alone, nearly 14 million new electric cars were registered globally, bringing the total number of EVs on the road to 40 million. This marked a 35% increase from the previous year, showing an incredible upward trend from just 2% market share in 2018 to 18% in 2023.1

China, Europe, and the United States have been the primary drivers of this growth. In 2023, China accounted for nearly 60% of new EV registrations, Europe 25%, and the United States 10%. These regions combined represented about 95% of global EV sales. The rapid adoption in these areas has been fueled by significant government incentives, technological advancements, and growing environmental awareness.

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Signs of Trouble

Graph trending down
Credit: Pixabay

Despite the impressive growth, recent trends indicate trouble. Tesla, a leading EV manufacturer, saw a 44% drop in sales in April 2024. This decline occurred despite significant price cuts, such as a $11,400 reduction for the Tesla Model Y.2 Other manufacturers, including Peugeot and GWM, also slashed prices, but overall EV sales dipped by 5% in April.

Experts suggest that the EV market may be struggling to move beyond early adopters. Caleb Bond, a car expert, noted that consumers are beginning to realize the limitations of EVs, such as poor resale value and rapid depreciation due to technological advancements. “People are not buying them in the same numbers they were because they’ve worked out it’s all a bit of a sham,” Bond stated.

Challenges Facing the EV Market

hot temperature,Thermometer on yellow sky with sun shining in summer show higher Weather, concept global warming
Source: Shutterstock

One of the significant barriers to widespread EV adoption is the lack of proper charging infrastructure. Many are still hesitant to switch to EVs due to concerns about the availability and reliability of charging stations. This issue is particularly pronounced in rural and less developed regions, where charging networks are sparse.

Technological challenges, like battery performance in extreme climates, also pose significant obstacles. During a particularly cold stretch in northern parts of the U.S. in 2023, many EVs were unable to charge, leaving drivers stranded.3 Additionally, the environmental impact of battery production and disposal continues to raise concerns about the overall sustainability of EVs.

Economic Pressures and Market Saturation

Crisis. Concept of reducing costs. Bag with dollars money in vise.
Source: Shutterstock

The increasing competition among EV manufacturers has led to aggressive price cuts, squeezing profit margins. For example, Tesla reduced the price of its Model Y significantly between mid-2022 and early-2024, despite only modest reductions in battery costs. This trend is indicative of the intense competition and the challenges manufacturers face in maintaining profitability.

The financial health of EV companies is also under scrutiny. Despite high valuations, stock prices for major EV manufacturers like Tesla, Rivian, and Lucid, have plummeted, which have raised concerns about overvaluation. These companies continue to boast high market caps relative to traditional automakers, but the downturn in stock prices suggests potential market corrections ahead.

Read More: Elon Musk Paid Almost $1M For An Abandoned Car Found By Couple for $100 In Storage Unit

The Future of the EV Market

EV charger station
Credit: Pexels

Government policies and subsidies have played a crucial role in promoting EV adoption. However, the subsidy rollbacks in key markets like Germany have already impacted sales. The number of EV models eligible for tax credits in the U.S. has also decreased, potentially slowing growth even more. Policymakers will need to balance environmental goals with economic realities if they want to sustain EV market growth.

Despite these challenges, there is hope. Continued advancements in battery technology, like improved energy density and faster charging capabilities, could help alleviate some of the current limitations. Additionally, as charging infrastructure becomes more reliable, consumer confidence in EVs is likely to improve.

Diversification and Market Segmentation

EV 4x4 charging
Credit: Pexels

Manufacturers are also looking to diversify their offerings to appeal to a broader range of consumers. Currently, a significant portion of EV models are large vehicles and SUVs, which are more expensive and may not meet the needs of all consumers. By introducing more affordable and smaller EV models, manufacturers can target different market segments and increase overall adoption rates.

The long-term sustainability of the EV market will depend on several factors. Firstly, the development of a robust second-hand market for EVs will be crucial. As more people buy and sell used EVs, concerns about rapid depreciation and poor resale value can be mitigated. Secondly, continued innovation in recycling and reusing battery components will be essential to addressing environmental concerns associated with battery production and disposal.


Lot full of unsold Teslas
A picture says a thousand words: a parking lot in Port Melbourne, Australia, full of unsold Teslas. Credit: 7News

The electric vehicle market has made impressive strides over the past decade, with significant growth in global sales and adoption. However, recent trends indicate that the market is facing substantial challenges, including declining sales, inadequate charging infrastructure, and technological and environmental hurdles. The image of unsold Teslas in a parking lot highlights these issues starkly.

While the future of the EV market remains promising, it requires careful management and strategic planning to overcome the current obstacles. By focusing on long-term sustainability and adaptability, the industry can continue to drive forward towards a greener and more efficient transportation future.

Read More: 20 Issues With Electric Vehicles (EVs) That Owners Complain About The Most


  1. Trends in electric cars.” IEA
  2. Picture proves EV market is in trouble.” News. June 4, 2024.
  3. Electric Vehicle Sector Faces Market Headwinds Amid Surge In Adoption.” Forbes. Dan Irvine. February 18, 2024.