Although Tesla Motors has built the largest battery factory, and perhaps one of the largest factories worldwide, recent sales figures for electric vehicles are declining. It appears that U.S. interest in electric cars has stalled. So why would Tesla, a company that designs, manufactures and sells high-performance electric vehicles and powertrain components, build its capacity to manufacture and supply half a million car batteries per year when corresponding demand does not exist? Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay According to Jessica Caldwell, senior analyst at Edmunds.com, "This was a market that was supposed to grow relatively quickly, as people adopted these new technologies...that didn't happen." This is mainly due to a drop in demand for traditional hybrids, which make up the largest segment of the electric car market. The pure electric vehicle and plug-in hybrid segments saw substantial gains, 35% and 44%, respectively; however, demand for these segments represents only a tiny fraction of the market. The “dropout” is occurring entirely within the traditional hybrid vehicle category, as shown in the figure below in darker blue. Despite the success of the Toyota Prius and the intensified efforts of hybrid vehicle manufacturers to introduce new models, this would indicate that sales are doing well. Well, the slowdown in demand for traditional hybrid vehicles is happening in a year when overall car sales are booming. One reason for the decline in demand for traditional electric vehicles could be stable gasoline prices and automakers' creation of more fuel-efficient gasoline vehicles. However, Tesla stock has soared, with more vehicles on the roads and an increase in the number of Supercharger stations. Traditional hybrid vehicles are powered by gasoline engines, supplemented by fuel-efficient battery propulsion systems. These batteries are found in traditional hybrid vehicles, such as the Toyota Prius. These batteries are not the high-efficiency lithium-ion batteries that Tesla co-founder Elon Musk plans to conquer the market with. Although the U.S. plug-in vehicle category is still small compared to traditional hybrids, the growth of this electric vehicle category has been exponential, as shown in the chart below. Light purple indicates monthly sales, while dark purple indicates cumulative sales since December 2010. The plug-in vehicle market is on the rise, and Musk has created the largest battery factory to prepare to be the first entrant in the sector pure electric vehicles. walk. Plug-in SUVs are only beginning to hit the market, which could lead to an exponential increase in demand as SUVs are very popular with the traditional American consumer. While plug-ins currently represent on average about 1.5% of cars sold in the United States, Musk is banking on exponential growth in this sector. However, several market forces are expected to increase demand. The biggest obstacles facing the plug-in vehicle market are the availability of charging stations, the autonomy of these cars without having to plug them in, the,.