- For those looking to break into electric vehicles, there’s a lot to know right now.
- We talked to five analysts about the five biggest trends in a fast-changing industry.
- From the effect of chip shortages to the state of investment, here’s what to know about EVs.
The chip shortage is here to stay
The ongoing microchip shortage has taken hundreds of thousands of vehicles out of global auto production over the past several months. North American automakers have borne the brunt, halting production of some of their most popular vehicles for days or weeks at a time.
The shortage stemmed from manufacturers’ canceling their orders for chips early in the pandemic, in anticipation of faltering demand for vehicles. Chipmakers then prioritized orders from consumer-tech companies. When automakers wanted to ramp back up, the chip capacity wasn’t there. This created a bottleneck that is now expected to last into 2022, experts say, and few manufacturers will be left unscathed.
“This problem isn’t like making masks for COVID,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. “This requires specialized buildings and special facilities, and it just can’t switch on overnight.”
