Electric cars could become the 'next big flop' as Tesla's Elon Musk loses $41billion in two weeks

Tesla charging station

One leading economist has questioned the future of the electric car market

Felix Reeves

By Felix Reeves

Published: 31/10/2023

- 14:35

Updated: 05/03/2024

- 16:55

One expert called on the car industry to look at hybrid vehicles instead of EVs

An industry expert has warned that the electric car bubble could soon burst over claims that drivers do not want to make the switch to an EV.

A number of measures have already been introduced to get motorists to make the transition including Government incentives, free charging credit and massive price cuts.

However, economist Stephen Moore has warned that electric vehicles may be the car industry’s “next big flop”.

Moore, who served as one of the top advisors to Donald Trump’s presidential campaign in 2016, claimed that zero emission vehicles may fail to meet expectations.

WATCH NOW: Labour's Steve Reed reacts to electric car law changes

He pointed to historical instances of car manufacturers making vehicles that were not sought after by the general public.

The economist said car companies would be “smart” to invest further into hybrid vehicles, but warned that it may not happen because the the momentum is already leaning towards EVs.

He said: “Henry Ford's son was named Edsel, and this was going to be the great car, all of the executives said, 'This is the car everybody's going to want to buy.'

“Ford made 500,000 of these new sedan cars, but guess what?

"Nobody bothered to ask consumers whether they wanted the car. And of course, the Edsel was one of the great flops of all time.

"I'm here to tell you, if these trends continue, we're going to see the EV market become the next big flop because car buyers don't want them,” he told Varney & Co on Fox Business.

Some industry experts in the United States have spoken of their fears about the electric vehicle market and how it will operate in the coming years.

Even some of the best-performing car brands are not immune to the peaks and troughs of the EV market.

The founder and CEO of Tesla, Elon Musk, suffered another hit on October 30 when his net worth dropped by around $7billion (£5.77billion).

Tesla shares fell by five per cent, thus lowering the value of Musk’s 715 million shares in his own company.

Since October 17, Tesla shares have fallen by 23 per cent – or around $189billion (£155.7billion) in market value.

It is believed that these market pressures have slashed Musk’s net worth by a staggering $41billion (£33.8billion).

Tesla has recently slashed the cost of its popular Model 3 by £3,000, with the ticket price starting from £39,990 for the standard version and £49,990 for the Long Range Model 3.

This followed a number of other noticeable price cuts from the electric vehicle brand earlier in the year worth around £8,000.


Elon Musk

​Elon Musk has lost around $41billion of his net worth in recent weeks 


However, some UK drivers have been left empty-handed for the time being, with the Performance Model 3 no longer available for purchase in the UK, although there are hopes it will launch in the new year.

You may like