The move from gasoline and diesel to battery electric requires an ecosystem approach. It’s not enough to simply introduce electric vehicle (EV) models; the industry also needs public and home charging solutions, maintenance and repair support, and, in many cases, financial incentives. But investment costs are huge, and many customers remain hesitant.
The e-mobility evolution has prompted many automakers to expand into energy management as a means of supporting EV uptake. Tesla was one of the early movers on this front, and today its Energy business is a key earner. The unit reported stronger margins than the automotive business in Q2 2024: 24.5% compared to 18.5%.
Similar business units have emerged from other automakers, including General Motors, where it takes the form of GM Energy.
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