eResearch | The electric vehicle (“EV”) market is experiencing high activity as more EV-focused companies list publicly, expand product offerings, and create partnerships. However, EV sales growth declined in the first quarter last year during the start of the pandemic before bouncing back.
Last year, the pandemic caused factory shutdowns across Asia, Europe, and North America, in addition to supply chain disruptions. The pandemic impacted operations across the entire automotive industry with EV sales growth plateauing. According to McKinsey’s Electric Vehicle Index, EV sales decreased by 25% in Q1/2020. In 2019, EV sales increased by 10% after experiencing a 65% increase in sales from 2017 to 2018.
However, according to data from EV-volumes.com, 2020 EV sales finished strong and were 3.24 million units, up 41% from 2019. China currently leads the EV market in sales, followed by Europe and then the United States but EV sales growth in Europe exceeded that in China for the first time.
FIGURE 1: Global EV Monthly Sales 2018-2020
Apple to Launch Autonomous EVs by 2024
In 2014, Apple (NASDAQ:AAPL) launched Project Titan, an internal project focused on developing technologies for its own autonomous EV. Since its launch, Project Titan was kept under tight secrecy with little disclosure provided on its progress.
Although Apple was developing a system for self-driving vehicles with its proprietary battery technology, it was unclear if Apple would be manufacturing the vehicles itself or through a partner.
This month, Reuters referenced an article from Korea IT News that claimed Apple made plans to sign a partnership with Hyundai Motor (KRX:005380) for the development of autonomous EVs. The partnership is expected to be signed by March with 100,000 EVs to be produced in the U.S. as soon as 2024.
In 2019, Apple acquired Drive.ai, a U.S. autonomous vehicle company that operates a fleet of self-driving, ride-hailing vans.
Project Titan hit a couple of speed bumps due to multiple leadership changes, which slowed the development process of its autonomous EV. Last year, John Giannandrea, Apple’s AI and machine learning chief, took over the lead for Project Titan after the retirement of the previous leader, Bob Mansfield.
If Apple’s plan to launch its vehicles by 2024 is successful, it will be interesting to see how Apple’s autonomous EVs compare to competitors such as Tesla (NASDAQ:TSLA).
Canoo Lists Publicly by Merging with a SPAC
Last year, Canoo (NASDAQ:GOEV), a U.S. EV company, listed publicly through a merger with Hennessy Capital Acquisition Corp., a special purpose acquisition company. The transaction provided Canoo with approximately $600 million in gross proceeds, which gave Canoo an implied $2.4 billion pro forma equity value.
Canoo launched in 2018 and developed a modular EV platform (“skateboard”) with expectations to manufacture its first vehicle in 2022. The EV platform is the world’s flattest modular skateboard that can be configured into a wide range of vehicles.
Canoo differentiates its business model by providing a subscription-based offering to its customers, which covers all the service costs such as registration, maintenance, insurance, and charging. Subscribed customers do not have ownership of Canoo’s vehicles and only have to pay a monthly subscription fee.
Ulrich Kranz CEO of Canoo, said,
“Our technology allows for rapid and cost-effective vehicle development through the world’s flattest skateboard architecture, and we believe our subscription model will transform the consumer ownership experience.”
Canoo is currently trading at $16.21 per share, a 29% decrease since listing publicly, with a market capitalization of $3.8 billion.
EVs Expected to Launch in 2021
This year, multiple new and anticipated EVs are expected to hit the market from Ford Motor (NYSE:F), Tesla, and GMC (NYSE:GM).
FIGURE 2: Ford Mustang Mach-E
Ford redesigned its Mustang model to develop an EV version called the Mustang Mach-E, which is entirely run on electricity with a range of up to 300 miles on a single charge. The first edition of the Mustang Mach-E is expected to launch early this year and cost $58,300 with a range of 270 miles.
FIGURE 3: Tesla Cybertruck
Tesla is expected to launch the first model for its Cybertruck this year with dual- and tri-motor versions that have a range of 300 miles and 500 miles, respectively. The tri-motor version will be priced at $69,000. Next year, Tesla plans to launch a single-motor version of the Cybertruck, which has a price of $39,000 and a range of 250 miles.
FIGURE 4: GMC EV Hummer
GMC plans to bring back its discontinued Hummer model by reintroducing an EV version of the Hummer that has a range of up to 350 miles. The first edition of the EV Hummer, which is already sold out, was priced at $112,595 and is expected to launch at the end of 2021.
The competition for the EV market is expected to continue increasing as both new EV companies and old traditional vehicle manufacturers develop and launch more products.
Electric Vehicle Market
Although sales for EVs slowed down, the market could see another surge in demand as governments target sustainability goals through the adoption of EVs.
This week, U.S. President, Joe Biden, announced plans to replace the government’s fleet vehicles with EVs as he addressed his agenda for climate change. In 2019, the federal government operated 645,000 fleet vehicles with a total of 4.5 billion miles driven.
According to Allied Market Research, the global electric vehicle market was $162 billion in 2019 and is forecasted to reach $803 billion by 2027, growing at a CAGR of 23%.
Other related eResearch articles:
- December 2020: Electric Pickup Truck Manufacturer Lordstown Motors Goes Public on the NASDAQ with a $3.1B Valuation
- October 2020: Vehicle Electrification Provider XL Fleet to List Publicly on the NYSE at $1B Valuation
- September 2020: Canadian Bus Manufacturer Grande West Poised to Enter the EV Space with Launch of its First Electric Bus
Notes: All numbers in USD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article.
