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tesla-may-be-in-trouble,-but-other-evs-are-selling-just-fine

Tesla may be in trouble, but other EVs are selling just fine

relax, EVs aren’t dead —

Almost every other automaker is seeing double-digit EV sales growth.

Generic electric car charging on a city street

Getty Images/3alexd

Have electric vehicles been overhyped? A casual observer might have come to that conclusion after almost a year of stories in the media about EVs languishing on lots and letters to the White House asking for a national electrification mandate to be watered down or rolled back. EVs were even a pain point during last year’s auto worker industrial action. But a look at the sales data paints a different picture, one where Tesla’s outsize role in the market has had a distorting effect.

“EVs are the future. Our numbers bear that out. Current challenges will be overcome by the industry and government, and EVs will regain momentum and will ultimately dominate the automotive market,” said Martin Cardell, head of global mobility solutions at consultancy firm EY.

Public perception hasn’t been helped by recent memories of supply shortages and pandemic price gouging, but the chorus of concerns about EV sales became noticeably louder toward the end of last year and the beginning of 2024. EV sales in 2023 grew by 47 percent year on year, but the first three months of this year failed to show such massive growth. In fact, sales in Q1 2024 were up only 2.6 percent over the same period in 2023.

Tesla doesn’t break out its sales data by region anymore, but its new US registrations were down by as much as 25 percent, month on month, as its overall marketshare of EVs closes in on 50 percent this year; by contrast, Tesla was 80 percent of the US EV market in 2020. (Overall, Tesla’s global deliveries fell by 8.5 percent.)

The other sick patient in addition to Tesla is Volkswagen. Despite local production of the ID.4 crossover in Chattanooga, Tennessee, the brand saw EV sales fall by 37 percent in Q1. It has also abandoned plans to bring the ID.7 electric sedan to North America, and the long-awaited ID. Buzz microbus has yet to reach US showrooms more than eight years after it was first shown here.

But all this noise has been enough to spook executives into action. Both Ford and General Motors took the embarrassing step of rolling back their electrification goals, all but admitting they bet on the wrong horse. Instead of turning away from new internal combustion engine products, we’re set for a new flurry of hybrids—just don’t expect any of them to show up before 2026.

GM’s difficulty in ramping up its new family of EVs built around the UItium battery platform has been well-documented. The end of production of the Chevrolet Bolt, which sold for less than $30,000, didn’t help; with the little electric hatchback (and the slightly stretched Bolt EUV) no longer contributing to the sales charts, GM’s Q1 EV sales fell by 21 percent.

The problems with assembling Ultium cells into battery packs appears to be in GM’s past now. Cadillac Lyriqs are starting to become a common sight on the road, and GM CEO Mary Barra told Bloomberg that GM expects to build between 200,000 and 300,000 Ultium-based EVs this year, a huge increase over the 13,838 it managed to ship last year.

Meanwhile, Ford’s EV “slump” is nothing of the kind. In May, it sold 91 percent more F-150 Lightnings than last year. E-Transit sales were up 77 percent. And the Mustang Mach-E showed growth of 46 percent. In total, Ford’s EV sales for the first five months of this year were up 87.7 percent on 2023, helped no doubt by the company’s price cuts.

High double-digit sales growth (in Q1 2024) has also been occurring at Hyundai and Kia (up 56.1 percent), BMW (up 57.8 percent), Rivian (up 58.8 percent), Mercedes (up 66.9 percent), and Toyota (up 85.9 percent).

“As anticipated, Tesla’s sales took a hit, influencing the overall market dynamics. However, a few brands saw significant EV sales increases, achieving over 50 percent year-over-year growth,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive. “As noted in January, we are calling 2024 ‘the Year of More.’ More new products, more incentives, more inventory, more leasing and more infrastructure will drive EV sales higher this year. Even so, we’ll continue to see ups and downs as the industry moves toward electrification.”

“We view the current headwinds that EV sales are experiencing in the US and Europe as short-term in nature. The buildup of charging infrastructure, availability of affordable EV models with a fall in battery prices, combined with government regulations, will drive sustainable BEV growth in the long run,” said Cardell.

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Smallish car, biggish price—we try out the 2024 BMW X2 M35i

bring us the ev —

We drive the new Sports Activity Coupe, but there’s no EV version for the US market.

A green BMW X2 parked next to the sea

Enlarge / BMW calls the X2 a Sport Activity Coupe.

Jonathan Gitlin

Last week, we told you about our first drive in the new Mini Countryman John Cooper Works, Mini’s new little crossover. This week, it’s the turn of a related model, built on the same vehicle architecture: BMW’s new X2 crossover, or “Sports Activity Coupe” in BMW-speak. As we’ll find out, the BMW shares more than one trait with the Countryman JCW.

BMW had an array of X2 M35is, all painted the same “Frozen Tampa Bay” shade of green, which starts in the US at $51,400. There’s a less-powerful $42,000 X2 xDrive28i coming here as well, but North American customers will not be offered the battery-electric iX2—BMW’s product planners evidently didn’t think importing the diminutive EV would be profitable. Outside the US, BMW expects 1 in 5 X2s to be electric.

The first-generation X2 (and the more upright-looking X1) were divisive cars even by BMW standards. The new one is slightly bigger than before, at 179.3 inches (4,554 mm) long, 72.6 inches (1,844 mm) wide, and 62.6 inches (1,590 mm) tall. That translates to more rear legroom and more cargo volume at the back, but it’s not a massive machine—a touch bigger than the Audi Q3 but a bit smaller than a Mercedes-Benz GLB.

Each of those exhaust pipes is almost 4 inches wide, yet all the sound is synthesized by speakers in the cabin.

Enlarge / Each of those exhaust pipes is almost 4 inches wide, yet all the sound is synthesized by speakers in the cabin.

Jonathan Gitlin

It’s not the most elegant car to emerge from BMW’s design studio in recent years, although the styling tweaks for the M35i version—a different front splitter, quad exhaust pipes, an M-specific rear spoiler, and an illuminated kidney grille—are visually rather bold. The three-dimensional light cluster details are rather interesting.

The X2 M35i is powered by a turbocharged 2.0 L four-cylinder gasoline engine that generates 312 hp (233 kW) and 295 lb-ft (400 Nm), sufficient to propel it to 60 mph (98 km/h) in 5.2 seconds via a seven-speed dual-clutch transmission that sends power to all four wheels.

BMW says it has heavily revised the suspension of the new X2, which shares a similar layout to the old model but with very little parts carryover. On the road, the main thing you notice is that the ride is quite firm, with a lot of lateral jostling at low speeds over bumps or potholes despite adaptive dampers as standard.

It’s also not particularly engaging to drive on a twisty road, with little feel communicated through the fat-rimmed steering wheel. The gearbox’s control logic was good enough not to need to bother with shifting manually via the paddles, but a long pull on the left paddle engages an overboost function for a short time.

The taillights (and headlights) have a rather interesting 3D design.

Enlarge / The taillights (and headlights) have a rather interesting 3D design.

BMW

As with the Mini Countryman JCW, the noises that accompany spirited driving are quite artificial in nature, being played to the occupants via the car’s internal speakers. This keeps noise levels low for bystanders, and while many of my colleagues found the sounds too contrived for their tastes, I actually quite liked the pops and crackles.

While the car wasn’t that thrilling to drive, I was impressed with how well it coped during a violent rainstorm. It handled puddles of standing water without a hint of hydroplaning, although a rear windshield wiper would be a welcome addition.

The cabin design is a little fussy, and there’s a big blind spot from the driver’s side A pillar that mars otherwise good forward visibility. The rear windshield is a little small, on the other hand. And on the topic of complaints, the cubby built into the armrest between the front seats is too weirdly shaped to be able to accommodate a smartphone—I’m not sure what you’re supposed to be able to store there other than pens, pencils, and maybe short rulers.

  • There are some design touches and details that you’ll also recognize in larger BMWs, like the M steering wheel or the intricately cut speaker fascias.

    Jonathan Gitlin

  • The rear seat is less cramped than the outgoing model.

    Jonathan Gitlin

  • There is between 25.3–51.7 cubic feet (716–1,464 L) of cargo room.

    BMW

  • BMW’s X2 does away with the rotary iDrive controller, so you can only interact with the infotainment via voice or touchscreen.

    BMW

The X2 uses BMW’s latest operating system 9, like the bigger and more expensive cars in the lineup. I’m normally a big fan of the latest version of iDrive, which offers excellent voice recognition and a UI that mostly helps the driver out. But like the Mini Countryman, in the X2 it feels as if the infotainment system is underpowered.

However, I did finally check out BMW’s in-car gaming, which also appeared in the BMW i5 we tested last year. It’s called AirConsole, and you use your phone as a controller, pairing it to the system via a QR code. There’s a Mario Kart clone that’s passable, and my drive partner and I tried a trivia game, too.

While I’m talking tech, I should also praise the augmented view for the navigation system, which overlays big arrows onto a video feed to show you exactly which turn it wants you to take. The My BMW App integration is also rather well implemented—you can use an Android or iOS phone as a digital key for the car, as well as remotely lock and unlock the doors or the cargo hatch.

If all of that sounds compelling, you should already be able to find the X2 M35i in stock at BMW dealerships.

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I parked a BMW from across the parking lot at CES 2024

A BMW iX is remotely driven around a CES parking lot

Enlarge / Until now, remote parking systems have mostly required the parking lot or garage to fit expensive sensors and equipment. BMW’s approach is different, requiring nothing that isn’t already on the car.

Tim Stevens

If I had a dollar for every automated self-parking demo I’ve seen over the years, many of which happened at CES, I’d probably have enough money to tip a Las Vegas valet, folks whose jobs are still very secure.

But that might actually be changing soon. Given all those earlier demos that went nowhere, I wasn’t particularly enthused when I heard that BMW and Valeo were demonstrating yet another implementation of a car parking itself for the 2024 CES in Las Vegas.

However, after a quick chat with the folks behind the technology and getting a chance to try it myself, I realized I was wrong. Remote Valet is impressive not only for what it can do but because it does it without any technology more advanced than what’s already found in today’s production cars.

The core concept is a simple one. You pull up to the entrance of wherever you want to go. Instead of dealing with the drudgery of parking your own car or risking paying to let some red-vested teenager take your car for a joyride, you get out, tap a button in the My BMW app, and walk away.

The car parks itself, and when you’re done, you just open the app, tap the button again, and the car magically returns to pick you up.

The secret is that the car is not truly parking itself. This isn’t a limited case of driving autonomy. You’re actually handing over control of your car to a real human sitting in a sort of call center full of sim racing rigs.

BMW's remote operators use high-end sim racing equipment to control the cars remotely.

Enlarge / BMW’s remote operators use high-end sim racing equipment to control the cars remotely.

BMW

That person then remotely pilots your car, using footage livestreamed from the 360-degree cameras in the car. That streaming happens courtesy of the car’s wireless connection, which also returns the driver inputs back from the call center to the vehicle.

It’s a mechanical Turk situation, with a driver very much in the loop, though not within the car—nor, necessarily, within the state. That vastly reduces the complexity of the situation, so much so that this technology could theoretically be deployed very soon, potentially even pushed to current BMWs via an over-the-air update. It relies entirely on sensors and antennas already built into cars.

No new hardware needed

Indeed, at CES 2024, the demo machines were BMW iX SUVs. They had additional developer-specific hardware inside since they’re test vehicles, but I was told that once the software is final, no additional hardware will be necessary. So unlike other automated parking demos that require things like beacons within garages for locational positioning, perfectly pristine paint markers on the road, or, indeed, high-resolution maps of the entire lot, this solution just requires butts in seats and a reasonably good wireless connection.

At the show, I was able to remotely pilot one of the iX SUVs. BMW had set up a surprisingly high-end sim racing rig, a Fanatec DD2 wheel plus Clubsport pedals. All this was overkill, given that the maximum speed for a car remotely piloted like this is 10 km/h, or about 6 mph.

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Meta & BMW Are Integrating AR/VR Headsets into Cars, Release Timeline Uncertain

Initially announced in 2021, Meta CEO Mark Zuckerberg shared an update on the company’s research partnership with BMW, which focuses on integrating AR and VR into vehicles to make people more productive, social, and entertained while traveling.

The ultimate aim in the BMW/Meta partnership is to accurately anchor virtual objects relative to the car’s motion by hooking into the tracking system of both the car and a Meta headset, which researchers say includes the Meta Quest Pro standalone mixed reality headset and the company’s in-development AR headset, Project Aria.

Without such a system in place, the headset’s rotational tracking would noticeably drift as the car makes turns and other adjustments, making it essentially unusable for anything but perfectly straight sections of road.

Check out the video detailing the research below:

Still considered a proof-of-concept prototype, Meta says the partnership has already overcome some key technical challenges, such as fusing the headset and car’s sensors to understand their relative position. That said, the companies don’t think it’s ready for the public just yet.

“It is too early to tell exactly how or when this technology will make it into customers’ hands, but we envision a number of potential use cases for XR devices in vehicles—from assisting the driver in locating their car in a crowded parking lot to alerting them to hazards on the road and surfacing important information about the vehicle’s condition,” said Claus Dorrer, Head of BMW Group Technology Office in the US. “The implications of future AR glasses and VR devices—for passengers as well as drivers—are promising. The research partnership with Meta will allow us to discover what immersive, in-vehicle XR experiences could look like in the future and spearhead the seamless integration of such devices into cars.”

AR and VR integration in cars isn’t an entirely new area of research. It’s been the sole focus of Audi-backed startup Holoride, which recently partnered with HTC to deliver in-car VR entertainment via HTC Vive Flow. Still, Holoride has been mostly grabbed headlines as a tradeshow mainstay; it hasn’t seen mass adoption yet despite only requiring a $200 retrofit pack, which enables Vive Flow owners to play VR in cars.

In the end, it seems car companies are now seeing the writing on the wall that riders will maybe very soon—but not right now—want to bring their own XR devices and actually use them in the car, just like you might a smartphone, albeit with more utility than any infotainment screen on offer.

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