Electric Vehicles Gain Momentum Despite Media Skepticism, ARK Report Shows

In a striking contrast to recent media narratives, ARK Invest’s latest research suggests electric vehicles are not only surviving but thriving in the global automotive landscape. CEO Cathie Wood’s analysis directly challenges the widespread perception that EVs represent a “dying technology,” instead positioning them as the future while internal combustion engines face inevitable decline.

“In our view, electric vehicles will continue to take share from gas-powered vehicles globally as they did throughout 2024 and the first quarter of 2025,” states ARK’s report, pointing to data that contradicts headlines suggesting EVs have reached a “dead end” or are “running out of power.”

The report reveals that traditional internal combustion engine (ICE) vehicles have been losing approximately 5 percentage points of market share annually since 2019, with global sales data showing a clear trajectory toward electrification. While hybrid vehicles have gained traction, ARK characterizes them as merely “interim technology” that legacy automakers are pushing as they struggle to reduce costs on fully electric models.

“Legacy automakers are enjoying what we believe will be short-term gains from hybrids likely to face long-term peril as innovative rivals harness the declining cost curves,” the report states, highlighting the fundamental cost disadvantage of vehicles that must maintain “two drivetrains for the price of two.”

China’s market transformation offers a preview of what may unfold globally. According to ARK’s data, battery electric vehicles already account for 26% of new car sales in China, with plug-in hybrids adding another 18%, pushing ICE vehicles below 52% market share. The report indicates 2025 will mark the first year where over half of all new cars sold in China will be electric or plug-in hybrid.

“Chinese companies have reduced electric vehicle costs aggressively, offering a glimpse into the likely transition,” the report notes.

Brian White, a Tesla retail analyst who runs the YouTube channel Futurazza, emphasized the global nature of this transition: “If you think it’s the end of the road for EVs, you should not invest in individual stocks… because you do not understand what’s going on in the world.”

White points to significant EV adoption increases in markets outside the U.S., noting that “in Europe, EV adoption is up 53% year-over-year” while China has “broken 50% market share.” He suggests American automakers risk their global competitiveness by not fully embracing electrification.

“The big three will die if they do not electrify because that is what the world is buying. No amount of protectionist policies will protect us overseas in those markets,” White stated, according to the Brighter with Herbert YouTube channel.

The report also addressed Tesla’s position in China, highlighting recent statements from Tesla Senior Vice President Grace Tao that more than 95% of Model 3 and Model Y parts manufactured at Giga Shanghai are produced within China. This localization strategy has helped Tesla maintain its position in the Chinese market despite geopolitical tensions.

ARK’s research concludes with optimism about Tesla’s announced plans to introduce a lower-cost EV model, which “could turbocharge EV demand beyond China.” The report asserts that “EVs are on course to deliver the most performant, lowest price transportation service in the world,” suggesting the technology’s advantages will ultimately prevail regardless of temporary market fluctuations or policy changes.

As autonomous vehicle technology advances alongside EVs, the report briefly noted Amazon’s Zoox robo-taxi unit issuing a software recall for 270 vehicles following a minor collision in Las Vegas, illustrating both the progress and ongoing challenges in the broader transportation transformation.