Tesla in trouble as major rival unveils new engine that could wipe out EV market

A huge rival of Tesla has unveiled a new plan for a new internal combustion engine that could pose further threat to the electric vehicle market.
Chiefs from Toyota, Mazda, and Subaru have said they will keep investing in fuel-based engines, sticking with older technology over new electric vehicles.
Toyota’s chief executive Koji Sato said: “In an era when the development of battery electric vehicle technology is accelerating, there is a new role we can pursue for the internal combustion engine as well.”
He added that the engines will be designed to be used alongside hybrid vehicles.
The announcement comes as the electric vehicle market is bogged down by decreasing demand and emerging competition from China.
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Meanwhile, demand for hybrids has risen. Toyota’s chief technology officer, Hiroki Nakajima, said: “Both the batteries for electric vehicles and international combustion engines are important.”
James Hong, auto analyst at Macquarie, told the Financial Times: “This is in line with Toyota’s strategy of spreading their bets across different technologies.”
He added that Toyota was “basically developing small-sized engines for hybrids . . . that can be mounted without modifying the design of their next-generation vehicles”.
Tesla CEO Elon Musk has faced a multitude of problems in recent months.
Chinese manufacturer BYD passed Tesla as the world’s number one electric vehicle producer in late 2023.
Musk warned last year that Chinese car companies were the “most competitive” and “will have significant success outside of China, depending on what kind of tariffs or trade barriers are established.”
He added: “If there are no trade barriers established, they will pretty much demolish most other car companies in the world. They’re extremely good.”