The EV Industry’s Unexpected U-Turn: A Case of Politically Driven Failures

the staff of the Ridgewood blog

The electric vehicle (EV) industry, once heralded as the future of automotive innovation, seems to be shifting into reverse. Despite the enthusiastic push from politicians like Joe Biden and European Greens, the market is faltering as more mandates push consumers and companies into a corner.

The German Example: Porsche’s Dilemma

Germany offers a striking case study in this unfolding saga. Under political pressure, Porsche committed to making 80% of its new vehicle sales electric by 2030. However, the reality has been starkly different. Porsche’s EV sales plummeted by 51% in the first half of 2024. The company has now pivoted, stating that future sales will be driven by consumer demand and technological advancements rather than political mandates.

A Broader Trend: Industry-Wide Struggles

Porsche is not alone. Major automakers like Ford, General Motors, Mercedes-Benz, Volkswagen, Renault, and Aston Martin are experiencing similar struggles. Tesla, the poster child of the EV movement, has also seen its stock plummet amidst significant sales declines.

The Core Issues: Technological and Practical Challenges

We have nothing against EVs, but the approach of force-feeding them to consumers before the technology is fully ready is fraught with problems:

1. Insurance Costs and Repairs: High insurance premiums and exorbitant repair bills for minor damages are turning consumers away.
2. Range Anxiety: Consumers are often stranded due to depleted batteries, exacerbated by the lack of widespread charging infrastructure.
3. Mythical Charging Stations: Despite promises, the much-needed charging stations, as touted by officials like Pete Buttigieg, are largely absent, adding to the inconvenience.

The Verdict: Not Ready for Prime Time

To paraphrase the title of Ralph Nader’s classic consumer advocacy book, many EVs are simply “Unready for Prime Time.” The industry’s struggles highlight the pitfalls of premature mandates and the necessity for technology to evolve in tandem with market readiness. Until these issues are addressed, the EV industry may continue to face significant setbacks, leaving both consumers and manufacturers in a difficult position.

Take the Wall Street Walking Tour https://www.facebook.com/unofficialwallstreet #WallStreetTours,#FinancialDistrictExploration,  #ExploreWallStreet, #FinancialHistoryTour, #StockMarketExperience, #FinancialDistrictDiscovery, #NYCFinanceTour,#WallStreetAdventure