In a recent report by FOX News’ Bret Baier, the demand for electric vehicles (EVs) and the subsequent readjustment of targets by companies have been highlighted. While EV sales have been on the rise, surpassing 1 million sales for the first time this year, manufacturers, car dealers, and even President Biden are finding that the current numbers are not meeting their expectations.
President Biden had previously stated that major auto companies should be prepared for 50% of future sales to be EVs by 2030 and 100% by 2035. However, several companies have now started to slow down production and readjust their targets, despite the growing number of EVs on the road. Kevin Book, the managing director of Clearview Energy Partners, explained that this adjustment is influenced by the adoption rate of EVs and the specific segments of the market.
Interestingly, more than 3,000 auto dealerships have signed a letter opposing Biden’s electric vehicle mandate, citing concerns about consumer acceptance and current and forecasted customer demand. The dealerships argue that the attempted EV mandate is unrealistic, as EVs are already stacking up on their lots, indicating a lack of customer demand in the marketplace. In 2022, electric vehicles accounted for less than 1% of all vehicle registrations, although the number of EVs on the road has increased significantly in the past five years.
Ford CEO Jim Farley also weighed in on the issue, stating that electric vehicles are mainly suitable for certain customers who don’t travel long distances and have higher incomes. Ford has since decided to slow down production of its F-150 Lightning pickup, pause construction at a battery factory in Kentucky, and postpone planned spending on EV production.
The competition to shift away from gas-powered vehicles is not limited to EVs alone. Hybrid cars have also been gaining popularity, making up 2% of the vehicle market share. General Motors and Tesla have both delayed the release of their electric pickups, further emphasizing the challenges faced by the EV industry.
Incentives and affordability remain key concerns for potential EV buyers. The $7,500 clean vehicle tax credit provided by the Inflation Reduction Act does not always bridge the price gap between EVs and gas-powered cars. Additionally, the slower uptake of EVs by price-sensitive drivers and longer retention of gas-powered cars on the road may lead to increased pollution.
To address these challenges, the federal government offers a credit of up to $4,000 for used electric cars, and state and local incentives are also available. The industry will need to continue building and creating models under $30,000 to attract more buyers. On a positive note, battery prices are decreasing, which could contribute to lower vehicle costs in the future.
Despite the current hurdles, there is still optimism regarding the electrification of transportation in the United States. However, it is likely that the transition will take longer than initially anticipated. Lawmakers, such as Senator Joe Manchin, have criticized the Biden administration for pushing auto dealers and manufacturers to transition to electric too quickly without sufficient incentives for consumers.
In conclusion, the demand for electric vehicles has been growing, but not at the pace expected by manufacturers and President Biden. Companies are now readjusting their targets and slowing down production, while auto dealerships express concerns about consumer acceptance and demand. Affordability and incentives remain key factors influencing the adoption of EVs. While challenges persist, the industry is optimistic about the future of electric transportation in the United States.
