The Rise and Fall of Tesla's Cottage Industry

Why Can't Experts Agree on Market Forecasts for EVs?

- By Sara Brittany Somerset

The cult of Tesla is a classic car tale for the modern age. Not since the 'Pony Wars' in the 1960s, which generated the rebellious Mustang and the Camaro, has there been such hero worship of a car. But now, it seems the electric vehicle (EV) bubble has burst.

Ford's electric truck, the Lightning—which is its counterpart to the gas-guzzling Ford F-150 pickup—has slashed its production by half due to lack of demand.

EV sales in the United States rose to a record high of more than 300,000 for the first time in the third quarter of 2023, but industry leader Tesla's market share slipped to the lowest on record and vies with chief EV rival, Rivian. Tesla's monopoly is dwindling with even budget car companies such as Kia offering EV models.

Why can't experts agree on market forecasts for EVs?

While Revel Is on the Rise, Ride Bound Has Failed

Revel, the electric mobility and infrastructure company, has an all-Tesla-vehicle rideshare app with a ubiquitous fleet of neon turquoise Model 3s and Ys. And although the app is still somewhat glitchy, the company appears to be thriving.

It usually takes longer to get a ride with Revel than with other rideshare apps due to a lack of availability of cars and a higher price point. However, their service animal policy has not received as much negative feedback as Über, whose drivers tend to leave customers with service animals stranded on the sidewalk.

Revel claims its "superhubs power its rideshare fleet, personal EVs, and other fleets, easing the transition to electric for consumers and professional drivers."

Ride Bound, a city-to-city Tesla rideshare commute service launched in 2018, has flopped. The company is out of business and its former domain name is for sale for $9,495. Initially priced at $39 to $79 per seat, depending on the city, commuting with Ride Bound was much sleeker than riding an Amtrak train or a Bolt bus.