Death Of EVs Or Rise Of Hybrids? Expert Says 'Better Narrative Is The Death Of The Explosive Growth'

Analyst Mark Fields recently shared his perspective on the current state of the electric vehicle (EV) market.

What Happened: On Thursday, Fields discussed with Brian Sullivan during CNBC’s “Last Call, “There’s this narrative of the death of the EV. I think the better narrative is the death of the explosive growth that we’ve seen in the past year or two for EVs.”

He highlighted that the incentives for EVs are improving, which was $6,000 as compared to $2,000 for ICE vehicles. Moreover, there is a boom in demand for hybrids.

“It’s a better solution for consumer, it’s more cost-effective, they don’t have to change their habits. That’s why you are seeing Fords in hybrids, Toyota, really, really going up and I think they are going to benefit from that, versus somebody like GM or VW who did the complete pivot to electric,” Fields added.

Fields’ comments come amid a slowdown in the EV market, which has prompted major automakers to shift their strategies. This shift has been marked by a focus on consumer choice, offering a mix of gas-powered, hybrid, and fully electric vehicles.

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Why It Matters: The slowdown in the EV market globally has been a topic of concern in the industry. Major automakers such as Ford Motor F and General Motors (GM) have topped Wall Street estimates with their first quarter results, largely due to their internal-combustion engine vehicles, particularly trucks, offsetting EV losses. Both companies have responded to the EV slowdown by returning to their traditional expertise, with Ford also focusing on hybrids.

However, the EV revolution continues, albeit at a slower pace, which could potentially put these automakers at risk of losing pace as the EV evolution continues to fuel innovation.

Moreover, the European EV market is facing a significant downturn, raising concerns about the region's ability to achieve its climate goals. This has prompted carmakers to urge governments for more support.

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