Here's Why Automakers Are Reviving Extended-Range EVs despite Initially Flopping
Confident Investing Starts Here:
Interestingly, it is worth noting that earlier models, such as the Chevy Volt (GM) and BMW i3 (BAMXF), never sold well, and EREVs have mostly vanished after 2022. Nevertheless, Ram (STLA) is planning an EREV pickup truck in 2026 that can go up to 690 miles using both gas and electric power. Volkswagen (VWAGY), Jeep, and Nissan (NSANY) are also working on their own EREV models. These vehicles are useful for people who drive long distances or live in places without easy access to charging, which helps reduce range anxiety while keeping costs lower than full EVs.
In fact, EREVs are cheaper to make than full EVs because they use smaller batteries and are less complex than regular plug-in hybrids. They also hold their value better than gas cars or full EVs, which lose most of their resale value within five years. In addition, sales of hybrids and plug-in hybrids are growing faster than fully electric cars, especially as more buyers focus on price and practicality. Therefore, EREVs may help more drivers transition to electric vehicles while avoiding issues like limited charging infrastructure or high upfront costs.
Which Auto Stock Is the Better Buy?
Turning to Wall Street, out of the stocks mentioned above, analysts think that STLA stock has the most room to run. In fact, STLA's average price target of $10.98 per share implies more than 8% upside potential. On the other hand, analysts expect the least from BAMXF stock, as its average price target of $92.82 equates to a gain of 5%.
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Yahoo
an hour ago
- Yahoo
US market avoids tariff impacts as outlook improves
Sales Summary According to preliminary estimates, US Light Vehicle (LV) sales grew by 7.3% YoY in July, to 1.39 million units. July 2025 had one additional selling day as compared to July 2024, meaning that sales were up by 4.1% YoY on a selling day-adjusted basis. The daily selling rate was measured at 53.6k units/day in July, up from 52.7k units/day in June. The annualized selling rate was estimated at 16.6 million units/year in July, up from 15.2 million units/year in June. Retail sales were estimated at 1.19 million units, up by 10.8% YoY, while fleet sales were thought to total 206k units, down by 4.5% YoY. OEM Analysis GM was once again the bestselling OEM in the market, with total sales of 237k units, and a market share of 17.0%. Despite a seemingly impressive monthly volume, GM's market share has now declined for three straight months. Toyota Group ranked second in July sales, on 218k units, for a 15.6% share, with the group's sales jumping by 19.9% YoY. Ford Group was in third place, on 182k units, but after a stellar Q2, the OEM's share fell back to a modest 13.1% in July. At a brand level, Toyota outsold Ford, by 187k units to 176k units. While it has been typical in recent times for Toyota to sell higher volumes than Ford, the reverse had been the case in June. Chevrolet was third, on 153k units. Model Analysis Despite a slightly quiet month for Ford overall, the F-150 was the nation's bestselling model once again in July, on 44.2k units – the F-150 has now held the top spot for four consecutive months. The Toyota RAV4 was in second on 39.8k units, while the Chevrolet Silverado came in third on 35.4k units. The ranking of the top three models was unchanged from June. The Chevrolet Equinox sold 31.8k units in July, its highest volume since March. Segment Analysis According to initial estimates, Compact Non-Premium SUV's market share was 21.5% in July, the segment's highest share since March. To some extent, however, this performance was upstaged by Midsize Non-Premium SUV, which achieved a market share of 17.2%, up by 2.0 pp on June's result, and the highest for the segment since May 2022. The segment was boosted by robust volumes from models such as the Toyota 4Runner and Hyundai Palisade. After two stronger months in May and June, the Large Pickup segment saw its market share ease back to 13.8% in July. David Oakley, Manager, Americas Sales Forecasts, GlobalData, said: 'There was little sign of tariffs negatively impacting the market in July. Automakers have made a point of absorbing the higher costs they are seeing, and some have even extended offers that were previously due to expire at the beginning of the July. Therefore, from the consumer's point-of-view, there was perhaps little to dissuade buyers from making purchases as normal. At the present time, OEMs are still vying for market share, rather than being overly concerned with protecting inventory. We should also bear in mind that for the majority of the month of July, the landscape regarding tariff rates in the longer-term was highly unclear. Automakers have therefore largely tried to maintain a business-as-usual approach, while mostly avoiding knee-jerk reactions in the face of uncertainty. The announcement that the tax credits available for Electric Vehicles (EVs) will be discontinued from September 30th appeared to notably boost sales of some EVs in July, an effect that we would expect to continue as we move through the next two months and the deadline looms larger'. Forecast Updates While OEMs have thus far largely adopted a 'holding pattern' approach to tariff uncertainty, this is not necessarily a strategy they can maintain indefinitely. Several automakers reported either outright financial losses in Q2, or large reductions in profitability due to the cost of absorbing tariffs. Recent trade deals with various countries have given greater clarity to the industry, as it appears that the benchmark rate will be 15% for countries outside of North America. Although the Trump administration raised tariffs on some Canadian goods to 35%, vehicles compliant with the USMCA trade agreement – which covers the vast majority of models sourced from Canada – will still be subject to 25% tariffs on the non-US content of the vehicle, and the same applies to Mexico. Nevertheless, the prospect remains of some vehicles sourced from the US's neighbors potentially incurring higher tariffs than a model imported from Japan, for example. In the longer-term, this seems unlikely to be sustained, but negotiations with Mexico, and particularly Canada, have been difficult. With an earlier-than-expected lowering of tariff rates, we now see US sales at around 15.7 million units in 2025, still down from almost 16.0 million units in 2024, but a considerably better outlook than would have been the case had the original tariffs remained in place without mitigation. This article was first published on GlobalData's dedicated research platform, the . "US market avoids tariff impacts as outlook improves – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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a day ago
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Are Wall Street Analysts Predicting General Motors Stock Will Climb or Sink?
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