110 Many EV Manufacturers Are Struggling To Scale Profitably In the absence of an EV supply chain, Tesla had little choice but to vertically integrate. Now that the supply chain is evolving, other auto manufacturers will reach profitability if they scale. Many are pulling back from the market, however, because the— already profitable—market leaders are cutting prices aggressively. Global Luxury BEV Unit Sales At Various Price Points* 450,000 400,000 Model Y (China) ES L ) 350,000 IC 3 2 0 VEH 2 300,000 g IC Au Model Y (US) R T f 250,000 Model Y (Europe) O Non-luxury top EC As selling BYD Model 3 (US) EL 200,000 models in China M for context T Model 3 (China) (T 150,000 s nit U 100,000 Model 3 (Europe) Zeekr001 (China) 50,000 Nio ET5 (China) Audi Q4 e-tron (Europe) - $- $50,000 $100,000 $150,000 $200,000 $250,000 Price *Data may not be exhaustive. “TTM” (trailing twelve months). “BEV” (battery electric vehicle). Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, including Piper Sandler 2023, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.