For all the enthusiasm around full battery-powered electric cars, we’re still only halfway there. In reality, the hybrid will own the electrified side of the road for some time to come.
Investors have run up the stock prices of electric car companies and their valuations far higher than the businesses really warrant. Electrics amounted to just 2.6% of total vehicle sold in 2019, and made up only 1% of all automobiles on the road. The share of sales is projected to rise to 6.6% by 2040.
On the other hand, hybrids, which use powertrains combining internal combustion and electric motors, are finding increasing favor with consumers. Sales peaked in 2013 in the U.S., coinciding with the year Tesla Inc. initially said it planned to start deliveries of its Model S full-electric sedan. But purchases of hybrids have ticked up over the last couple of years, and they’re now penetrating global auto markets at a far faster pace than pure electric vehicles.