Short Circuit: The Start of the Biggest Electric Vehicle Market Crash in History

Short Circuit: The Start of the Biggest Electric Vehicle Market Crash in History

Welcome to Highway Herald, your road map to the latest in auto. Today we’re diving into a reality check for the automotive industry. After years of riding high on the promise of electrification. It seems we’ve hit a speed bump. Frozen EVs, malfunctioning chargers and job cuts

Are just a few signs pointing towards a potential EV market crash. Need evidence? Buckle up and let’s explore: Number 6: The Cold Reality of EVs and Charging Woes. Recent scenes of EVs stranded at charging stations and freezing temperatures have underscored the concerns of many who have been hesitant about the switch to electric.

The truth is EV still have a long way to go before they can truly replace their gas guzzling counterparts. One major issue battery performance in cold weather as the mercury drops, so does the battery range, leaving many EV drivers out in the cold quite literally.

Before we continue a quick pitstop, if you’re enjoying this deep dive into the world of auto, why not hit that subscribe button? Your support fuels our passion to bring more content like this to you. Back on the road. Those who did manage to reach a charging station were in for

Another shock when Chicago temperatures plummeted last month. It wasn’t just the batteries that suffered. Chargers, too, struggled to keep up, with many failing or taking much longer than usual to charge. The colder it gets, the more energy batteries need to charge. This has led to a new kind of anxiety for EV drivers

Charging anxiety even if they reach a charging station. There’s no guarantee they’ll be able to juice up their vehicles. Number 5: Auto Manufacturers Pump the Brakes. Not long ago, car manufacturers were all in on the EV transition. Racing to secure pole position in the new market, Among them, American giants like General Motors.

Led by CEO Mary Barra, who boldly promised a fully electric fleet by 2035. Fast forward to today and we’re seeing a shift in gear after years of rapid growth. The EV market is showing signs of slowing down. The reason demand, or rather the lack thereof. Many consumers feel pressured into buying pricey EVs

That don’t offer enough bang for their buck. As a result, many are choosing to stick with traditional cars for as long as they can. Causing manufacturers to rethink their strategy. Production targets are being scaled back and ambitious plans are being revised. Remember when Barra planned to sell 1 million EVs annually by 2026?

Last year, GM sold around 100,000 EVs. That’s a far cry from a 1,000% growth in just two years. Even GM seems to be doubting its own plan, as evidenced by the recent decision to delay production of their future. EV stars, the All Electric Silverado and Sierra. Number 4: Job Cuts on the Horizon.

Despite a surge in EV sales last year, the pace of growth has been slower than anticipated by many automakers. As a result, many have scaled back their sales targets for the coming year, leading to a significant reduction in production.

This domino effect has led to job losses, with more expected in the near future. Take the all electric Ford F-150 Lightning, for instance. This pickup was touted as the successor to America’s most popular pickup, but this year production targets have been halved. Instead of churning out 3200 units every week.

Ford’s Michigan plant will now produce only 1600 and shut down one of its two production shifts. As per our current information. This decision will impact around 1400 workers. Ford officials have stated that half of these workers will be relocated to the nearby Michigan Assembly plant

To ramp up production of the gasoline powered Bronco and ranger models. The fate of the remaining workers is still uncertain, but they will likely be reassigned to different roles within the road complex, shifting from producing electric pickups to gas powered F-150s.

Some workers may lose their jobs, while others could opt for retirement packages as part of an agreement signed with the United Auto Workers last October. Number 3: The Profit Paradox of EVs. While the green agenda is commendable, the EV industry is a business first and foremost. Currently, it’s not profitable.

EV manufacturers are losing money on every sale as they’ve yet to crack the code of the economy. Despite heavy investments in new technology whose production processes aren’t optimized, making electric cars expensive to produce. Market pressures for competitive pricing and hefty discounts have led some manufacturers to exhaust their investment funds and slow down.

Ford Motor Company exemplifies this trend, reportedly losing $36,000 on each F-150. Lightning sold in the latter half of last year. Overall, Ford is estimated to have lost around $4.5 billion on EVs last year alone, leading to postponed major investments. General Motors is in a similar boat, delaying key heavy projects to conserve capital.

But it’s not just manufacturers feeling the pinch. Rental car companies like Hertz are also losing money on EVs, partly due to their poor resale value. Data shows that electric cars depreciate at a significantly higher rate than their gas powered counterparts, losing half their value over five years.

Number 2: The Reign of SUVs and Trucks. The landscape of the automotive market has undergone a significant transformation over the past decade. The preference of consumers has shifted towards more practical bodystyles, leaving traditional sedans, hatchbacks and coupes in the dust.

It’s no surprise that SUVs and pickups now command over 80% of the market. From an EV standpoint, this presents a challenge. Until now, electric vehicles have been compact. Prioritizing efficiency over spaciousness and practicality. Sure, there are a few large and highly practical electric SUVs on the market,

But they’re steep price tags put them out of reach for most customers. While there are signs that more capable electric SUVs could be on the horizon, the outlook for the pickup segment isn’t as promising. Electric pickup simply can’t match the capabilities of their gas and diesel powered counterparts. Yes, they’re faster,

But in the world of pickups, it’s towing and hauling that count. For instance, the most capable F-150 lightning can tow up to £10,000, while its gasoline counterpart often exceeds £13,000. But the maximum towing capacity isn’t the only issue. The real problem lies with the battery. Under heavy use, the range drops significantly.

This was confirmed by several tests. For example, Motor Trend’s trailer test yielded disappointing results with the claimed maximum range of 280 miles, dropping to between 90 and 115 miles, depending on the trailer weight. Similarly, triple A automotive engineering researchers found that

Loading the pickup with £1,400 of sand bags cut the range by nearly a third. Clearly, there’s still a lot of work to be done before electric pickups can truly rival traditional internal combustion units. Number 1: Lack of Government Support. On paper, Biden’s administration

Plans to make two thirds of new cars all electric by 2032. But behind the scenes, the government may be having second thoughts. There have been several telling moves recently. For starters, the IRS has changed the eligibility criteria for a federal tax credit with more domestic parts required in production.

Many EVs no longer qualify for the $7,500 tax credit. Even Tesla has a couple of models that are not eligible. Then there’s the issue of charging infrastructure. Despite talk of the government investing billions in charging infrastructure, a report from Politico suggests that not a single new charger was built last year,

Despite Congress providing $7.5 billion for this purpose. This leads us to believe that something big is happening behind closed doors. Don’t be surprised if the government decides to abandon its ambitious electrification plan entirely. Thank you for joining us on this journey through the world of auto.

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In this video, we delve into the current state of the electric vehicle (EV) industry, exploring the challenges and realities that are shaping its future. From frozen EVs to job cuts, we leave no stone unturned in our analysis.

✳️ 00:00 | Introduction
🛻 00:30 | Number 6: The Cold Reality of EVs and Charging Woes.
🛻 01:39 | Number 5: Auto Manufacturers Pump the Brakes.
🛻 02:45 | Number 4: Job Cuts on the Horizon.
🛻 04:02 | Number 3: The Profit Paradox of EVs.
🛻 05:11 | Number 2: The Reign of SUVs and Trucks.
🛻 06:53 | Number 1: Lack of Government Support.

As we wrap up, we reflect on the key takeaways from our deep dive into the world of EVs. From the struggles of manufacturers to the changing landscape of the automotive market, we uncover the truth behind the green agenda. Don’t miss out on this enlightening journey through the EV industry.

#HighwayHerald #electricvehicle #electrictruck #electriccar #fordtrucks #truckreview #carreview #suvreview

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