U.S. Companies Betting on Growth in Low-Speed Electric Vehicles
A growing number of companies are betting that Americans may be ready to embrace smaller, less expensive electric low-speed vehicles (LSVs), which sit between traditional golf carts and full-sized cars or trucks. These LSVs offer affordability and ease of use for short-distance travel and can typically charge overnight using a standard household outlet. Industry players like Stellantis' Fiat, Waev—which owns the GEM brand—and California-based startup Chip Motors are developing these vehicles as part of an expanding micromobility market. McKinsey & Company estimates that this global segment could grow from $160 billion in 2022 to over $340 billion by 2030, with North America expected to see significant growth. Despite historical challenges for small cars in the U.S., proponents argue LSVs may fill a niche market. They are particularly appealing as an affordable alternative amid broader affordability concerns and could be used more widely if regulatory changes allow them on public roads.
Tickers: $STLA
Topics: affordability electric vehicles LSVs U.S. auto industry