Quick take: Technology analysts often talk about the typical hype cycle, which starts with overinflated expectations which inevitably bring on disillusionment, before the technology rebounds and finds its true level. The electric vehicle (EV) sector is clearly in the trough of disillusionment, judging by announcements such as the recent EV cutbacks by Toyota and the suspension of Chevy Volt production. – Jesse Berst

Further evidence of the downturn in the EV space comes in a story in the Wall Street Journal. Charismatic founder Shai Agassi has stepped down as CEO of Better Place LLC, a startup dedicated to EV charging and battery swapping stations.

 Although analysts told the Journal it's not unusual to bring in a manager to handle growth, this change came about because of lack of growth. In a surprise announcement, the company says it is replacing Agassi so the company can "realign for its second chapter." A Better Place press release (which you can read in full on page 2) says Agassi will continue as a board member and shareholder. Evan Thornley, CEO of Better Place Australia, was appointed CEO of the global company.

 Israeli-born Agassi has raised $750 million from venture investors. The company reports it is burning through that cash much faster than it can replace it with revenue. Since its founding in 2007, the company has lost just under a half billion dollars.

Too many battery factories?

Another perspective on the state of the EV industry comes from MIT Technology Review. Kevin Bullis reports that three years after the Recovery Act tried to ignite an EV battery industry in the U.S. with a $2.4 billion grant program, factories that received those grants are either idle or operating well below capacity.

The problem? People aren't buying enough EVs – and those that do sell are typically equipped with batteries from Asia where battery manufacturers had a head start because they were already producing batteries for portable electronics and hybrid cars.

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.