"The difficulties that EV start-ups have encountered, such as the auto sales decline, harsh fundraising environment and subsidies reduction, all started last year," said Brian Gu, president of Alibaba-backed Xpeng Motors. "The outbreak will aggravate these issues that already had existed," said Gu, whose firm delivered 16,000 vehicles in 2019. Despite subsidies to EV makers and tax breaks for buyers, industry watchers fear electric vehicles could become an even harder sell after the plunge in global oil prices, which has made the technology a less attractive bet for consumers and investors alike. Even Buffett-backed long-established EV maker BYD reported 85% profit drop in the first quarter due to the slide in sales caused by coronavirus.