https://issuesinsights.com/2023/10/27/has-ev-boom-jumped-the-shark/
Many people have climbed aboard the electric-vehicle bandwagon, lured by promises of pristine air and cheap, easy-to-use electricity that make EVs seem inevitable. But now, after years of spending billions on subsidies and shaming people into buying into our inevitable all-electric future, some are slamming on the brakes — surprisingly, including many of the biggest companies in the industry.
The global companies, recipients of massive subsidies to support fossil-fuel abolition, are backing away from their support.
General Motors, faced with a strike, just abandoned its EV strategy, while the AutoBlog points out that Mercedes “is finding that customers aren’t as excited about new EVs as it is.”
Elon Musk’s Tesla lost an estimated $28 billion in value after reporting what were called “disastrous third-quarter earnings.” Ford, faced with dramatically slowing sales, just announced it will delay $12 billion in EV investments.
With companies providing far more electric vehicles than consumers want, Toyota’s Chairman Akio Toyoda this week claimed “people are finally seeing (the) reality” of EVs.
There are many reasons for this sudden slump. But a few stick out.
For one, even after all the subsidies, EVs are still pricey, especially at current interest rates, which have nearly doubled from an average of 3.9% at the end of 2021 to around 7.4% today.
Meanwhile, anywhere from a quarter to a third of EV charging stations is out or disabled at any given time. There are an estimated 150,000 gas stations in the U.S., but just 10,000 fast-charging outlets. And even if you find a working charger, it’s expensive: Roadside chargers can be five to 10 times more costly than home chargers.
What happens if you’re in the middle of nowhere and you can’t find a working charger? Sorry, your “car” is no longer a car. It’s now dead metal.
A just-released report from the Texas Public Policy Foundation finds that Americans don’t fully understand the real costs of EVs due to the government’s massive involvement in the market. The numbers are shocking: “The average model year 2021 EV would cost $48,698 more to own over a 10-year period without $22 billion in government favors given to EV manufacturers and owners,” the report notes.