EV Market Collapse, Grid Change
Concerns that EVs will be a significant draw on the electricity grid have largely disappeared. Also gone is the idea that car emissions across the industry will drop. After the disappearance of the $7,500 tax credit, it is expected that EVs as a percentage of new car sales in the US will drop by half.
Gone also are the billions of dollars that large legacy car companies have invested in EV development. Based on normal return on investment, there was never going to be a payback anyway. Despite Tesla’s falling sales, its most expensive development is behind it.Â
Gas Car Comeback
AutoPacific’s forecast, according to Inside Clean Energy, expects EVs to account for 12% of the US car market in 2029. A year ago, that forecast was 25%. That means that car companies that hoped to make money on EVs in the next two or three years won’t. One rule in business is that if a product fails, the industry assesses the chance it will succeed. Car companies may wait until they see a sharp uptick in demand before they launch new models. The lack of new models may further retard sales.
Several gas-powered car companies will continue to make a great deal of money from them.
More from Electricity Wars
- Battery Layoffs Start
- 90% Of People In This Nation Own EVs
- Where Will Chevy’s New EV Find Charging Stations?
- Musk’s Problem: Cheaper Cars, Expensive Electricity
