CAR bosses are pulling back on their EV targets as sales struggle to keep pace with costs.
A number of major manufacturers have delayed or wound down electric car projects in recent months.
German giant Mercedes is reportedly having to cut prices on its EVs by thousands to keep them moving out of showrooms.
Analysis by Insider found that the brand’s EQB SUV was selling for an average of £2,474 below its RRP.
And company CFO Harald Wilhelm, when asked about the state of the EV market, told an analyst call: “This is a pretty brutal space.
“I can hardly imagine the current status quo is fully sustainable for everybody.”
Mercedes’ Q3 earnings also fell in the latest filings, while the company predicted it would reach the lower end of its return on sales forecast for the year, according to Reuters.
Wilhelm remained clear that the company is still committed to its EV targets, but profit margins on the vehicle were smaller than expected.
Merc’s stock took a dive after the announcement, dropping by 5% over the last five days.
However, they certainly aren’t the only brand to see a difficult period, with BMW stock down 4% in the same period and VW dropping 2%.
Ford and Tesla have also slashed prices of some of their electric models, while GM delayed production on several cars.
The latter also abandoned its production targets of 100,000 EVs by the end of the year and 400,000 in the first half of 2024, as well as pulling its profit forecasts for the year amid uncertainty caused by the UAW strike in the US.
Nonetheless, the brand emphasises that it remains committed to an all-electric future.
Elsewhere, GM and Honda pulled the plug on a £5 billion joint project to co-develop more affordable EVs, which was only announced last year.
A statement from GM read: “GM and Honda continue to work on co-developed electrified vehicles such as Acura ZDX and Honda Prologue, advancing state-of-the-art fuel cell technology, autonomous ride-hail vehicles – now expanding our efforts globally with the recent announcement in Japan and other areas that will transform mobility.
“GM’s focus over the next two years will continue to be on scaling the Ultium Platform and battery cell capacity, expanding a robust domestic EV supply chain, and delivering a comprehensive portfolio of EVs across categories, including lower cost models.”
A spokesperson for Honda said: “Together, GM and Honda are working on a series of projects that are designed to transform mobility.
“These include co-developed electrified vehicles, advancing state-of-the-art fuel cell technology, and autonomous ride-hail vehicles.
“Last year, we began working on an affordable EV program for global markets, which was slated for introduction in 2027. After extensive studies and analysis, we have come to a mutual decision to discontinue the program.
“Each company remains committed to affordability in the EV market, with Honda focused on achieving 100% electrified vehicle sales by 2040, which includes the rollout of new EVs based on our dedicated EV platform, starting in 2025.”
A Mercedes spokesperson added: “Our strategic focus on going all-electric remains unchanged. However, it is important to have some tactical flexibility to adapt to dynamic market conditions.
“Chief Financial Officer, Harald Wilhelm, reiterated this goal during the third-quarter earnings call on Thursday: the strategic goal of going all-electric by the end of the decade, wherever market conditions allow.
“Mercedes-Benz is also accelerating the adoption of EV’s by investing in charging infrastructure.”
It comes after a Tesla owner revealed a bizarre modification that added a retro throwback to his £44,000 Model Y.
Meanwhile, a one-of-a-kind Nissan supercar hit auction for an eye-watering price.