Electric vehicles may be the future of the automotive industry, but profitability remains an elusive puzzle.
A recent survey reveals that only four pure electric car brands globally are making profits, while most others remain mired in losses.
According to data from Rho Motion, a company specializing in energy and automotive sector analysis and forecasts, Tesla leads the pack in terms of profit margins in the electric vehicle sector with 7.2% in 2024. However, this figure has dipped compared to 2023. Closely following is BYD, the Chinese electric vehicle giant, with a profit margin of 6.4% and showing a growth trajectory. If this trend continues, BYD may soon surpass Tesla in profitability.
A key factor contributing to Tesla and BYD’s success is their consistent production strategy and expansion, significantly reducing production costs and enhancing competitiveness.
The remaining two names on the list of profitable all-electric carmakers are Li Auto and Seres Group, both Chinese brands.
Aside from these four profitable companies, several other electric vehicle manufacturers are inching closer to the break-even point. Zeekr, a brand under the Geely Group (China), currently has a profit margin of -8.5% but is witnessing growing sales, indicating a brighter future. Xpeng and Leapmotor are also narrowing the gap towards profitability, having halved their losses compared to 2023.
Nio, one of the most notable names in the Chinese electric vehicle market, is still facing challenges. Their 2024 profit margin stands at -30%, indicating a long road ahead to turn a profit.
Interestingly, Tesla is currently the only non-Chinese pure electric carmaker in the black. Other Western brands like Polestar and Rivian have yet to reach the break-even point, although both have significantly reduced their losses in 2024.
Bringing up the rear in profitability is Lucid Motors, the American luxury electric carmaker. According to Rho Motion data, Lucid posted a loss of -374% in 2024, an improvement over the previous year’s figure of more than -500%, but still without a clear sign of recovery. Nonetheless, strong backing from Saudi Arabia is keeping Lucid afloat despite prolonged losses.
TH (Tuoitrethudo)
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