Part 6/12:
Several key points emphasize this reset:
Demand Constraints: The industry has shifted from a supply-constrained market to a demand-constrained one. Once assumed demand was infinite, but recent data indicates that consumer appetite is moderating.
Funding and Investment Slowdown: Capital markets, previously characterized by abundant funding for EV companies, have become more cautious. Investment levels have decreased, and automakers are approaching EV spending and project timelines more cautiously.
Profitability and Losses: Previously, automakers were willing to accept significant losses to capture market share; now, the market is demanding profitability, forcing a reassessment of growth strategies.