Not going to lie- I’ve been a little discouraged about the EV news lately. Sure, new models are coming out every day. New breakthroughs in battery construction seem just over the horizon, but I have found myself inundated with seemingly bad new.
First, I found myself in a conference where a very influential member of a major utility organization proceeded to dismantle the improvements to the industry that EVs represent. Some of it I agreed with, like saying on-peak charging will bankrupt utilities, but he was still promoting the idea that EVs are inherently more “dirty” than fossil fuel vehicles. I’ve read the studies. I believe they are “cleaner” to operate overall, but you have to trace the reports back to their origin (who paid for it) to find hidden biases in the conclusions. But I digress.
Next, I am bombarded by articles where Ford is slowing down production of F150 Lightning pickups, pausing the construction of battery plants, and furloughing workers at their EV facilities despite the fact interest in electric vehicles is growing. General Motors, in like fashion, is throttling back on their production and pushing current sales goals into 2025.
Rationally, though, all of these moves make sense. Ford is claiming a $4.8. billion loss in their EV division because of softening sales, supply issues, and general uncertainty about rapidly changing world dynamics. Ford is also investing billions in new facilities and killing of ICE nameplates to make room for new EV models, proving they are still optimistic about the future of EVs. GM finds itself in the same situation: trying to maximize capital to sustain longevity of the brand. Even Tesla is announcing disappointing Q3 sales– down 20%.
The economy and higher interest rates that have slowed EV sales. Factor in that EVs are still slightly more expensive than their gasoline counterparts and we understand the pause. However, sometimes, it’s good to pause, assess the situation, so that you can push ahead again, even harder, tomorrow.
All in all, the EV industry is doing well and is gaining more acceptance every day. Things are cyclical and this too shall pass. Keep the faith.
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