What’s Going On Here?Hyundai reported worse-than-expected third-quarter results on Monday, but the South Korean carmaker said investors should stay plugged in for its electric future. What Does This Mean?Despite Hyundai’s disappointing third-quarter results, the carmaker was adamant that it’s still on track to make record-breaking profit this year overall, and said its renewed focus on EVs and luxury SUVs will, ahem, fuel a bigger and better future. Looks like Hyundai needs to practice the art of persuasion: less-than-convinced investors still sent the carmaker’s shares lower, anxious about current supply chain disruptions and the rising costs of materials. They might also be worried about the lasting effects of Hyundai’s massive engine recall from over five years ago: after all, the carmaker set aside a whopping 2.9 trillion won ($2 billion) in related provisions last quarter. Why Should I Care?Zooming in: The math ain’t mathin’.
Hyundai told investors this year that it believes it can sell nearly two million EVs worldwide by 2030, roughly 7% of the total market (tweet this). Thing is, Hyundai only sold 50,000 electric cars last quarter, and while it does hope to sell 300,000 next year, it’ll need to supercharge those sales by 30% a year from then on if it wants to fulfill those electric dreams. Investors, all too aware of the market’s current challenges, have their doubts.
Zooming out: Sorry, Elon.
Hyundai predicts there will be 27 million EVs sold globally in 2030. And given that Forbes pinned Tesla’s market share at 14% earlier this year, the OG electric carmaker would account for around four million of those EVs if that share held steady. Those predictions, though, mean Tesla would only notch around 14% growth in car sales over the next eight years, which seems at odds with the firm’s goal to increase production by 50% a year over a few years. So either that aim is too ambitious, or the company’s set for an unwelcome slump after just a few years. | 