2023 has been deemed as the year of the electric pickup. This particular vehicle is considered as the backbone of the automotive industry, especially in the U.S. But, as electrification transforms the entire industry, electrifying pickups can seem even more daunting for automakers compared to producing EVs.
Besides the scary costs that come with EVs and make it harder for automakers to keep their finances in check, pickup makers are also in for other manufacturing and production challenges. For this reason, there's still no automaker that produces electric pickups at a scale. But the contenders are the EV king himself, Tesla. Inc (NASDAQ: TSLA), legacy automakers such as Ford Motor (NYSE: F) and General Motors (NYSE: GM), as well as EV startups like Rivian Automotive Inc (NASDAQ: RIVN). However, there are also players from the automotive parts field that can play a big part in the electric pickup race, such as Worksport Ltd (NASDAQ: WKSP).
Rivian Has Set The Benchmark
The EV startup currently has three models on the roads: a delivery van (the EDV), pickup truck (the R1T), and SUV (the R1S). Despite the usual startup and manufacturing pains, Rivian came close to meeting its 2022 production target of 25,000 units as its annual output amounted to 24,337 units. It aims to double its output this year and it affirmed its guidance during the latest earnings report. Even if it loosens its ties with Amazon (NASDAQ: AMZN) regarding exclusive delivery truck orders, it still counts on the tech titan as its investor for support.
Tesla's About To Throw Its Hat In The Electric Pickup Ring
Although even the cash-abundant Tesla struggled more than it anticipated on this front. After several delays, its eagerly anticipated Cybertruck is finally coming by the end of the year with the initial production goal being 2021. But even if Tesla rolls it off the production line this year, mass production won't happen before 2024. When it comes to Tesla, Musk's quarterly investor calls are the place where one learns about the company's plans. The world still does not know much about the truck besides the fact it does not resemble any truck that exists on the market. Meanwhile, GM's subsidiary, GMC is already selling the Hummer EV. While also pushing in the midsize pickup truck department, GM has also announced the Chevrolet Silverado EV and a GMC Sierra EV, both of which could possibly hit production before Tesla's Cybertruck.
Ford Is Trying To Regain Its Pickup Supremacy In The EV Universe
Ford has paused the production of its electric pickup, F-150 Lightning for almost a month this spring due to a battery issue. Its peer, Lordstown Motor Corporation (NASDAQ: RIDE) also halted production of its electric pickup Endurance back in February due to quality issues. So, regardless of the experience and the company's history, making electric pickups is no picnic for anyone. For this reason, Ford joined forces with Tesla to create its EV ecosystem. Ford's future vehicles will benefit directly from Tesla's supercharging infrastructure without needing an adapter. After this surprising move, Ford CEO Jim Farley predicts an acceleration of cooperation across the industry. If Farley's right, Tesla is on the way to change the charging norm of the industry.
On Wednesday, Farley stated that the challenging cost of EVs will remain higher compared to their ICE counterparts until the end of the decade. Simply put, it will take second and third generation models to come to life to achieve the know-how. As of 2030, Farley expects costs savings from smaller batteries and the fact that vehicles will require fewer parts.
Worksport Can Help Those That Didn't Even Stand A Chance Enter The Pickup Race
This renown tonneau cover manufacturer possibly has two game-changing products on its hands. The solar powered tonneau cover Terravis and the remote power storage COR promise to revolutionize truck beds. Hyundai has gained the right to use this potentially groundbreaking technology in its Santa Cruz SUV.
Worksport's U.S. factory in New York already has the equipment installed, first materials have been received and skilled staff has been trained. This week, it officially launched the SC4 PRO soft folding tonneau cover, and like all of its products, it is available on Amazon and Walmart (NYSE: WMT). With its patented solar-powered accessories, Worksport will be able to help pickup makers in easing the challenges of the manufacturing battle.
All in all, bringing electric pickups to life turned out to be a daunting task even for the most powerful players. It is a competitive and challenging battle that is far from over, and therefore, cooperation in many forms and across the industry seems the inevitable and only way forward. It seems that pickups are the biggest EV challenge and Ford is the first legacy automaker to acknowledge that only team effort can bring this electric future to life.
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