The World’s Dying EV Industry

There has been concern that EV charging, along with AI server farms and the increasing global use of air conditioning, would strain the grid. Those fears may be overstated at least as far as EVs are concerned. As Tesla launched a new set of EVs with price points below its current ones, industry experts said that was not enough to draw people back to the EV table. 

Except in China, EV sales worldwide have begun to level off or decline. Among the reasons are the rise in electricity prices and the sharp drop in oil and gasoline prices. With increased production from OPEC+ and ongoing protection from the US, gas prices could stay down for years. 

The FT noted that car companies have shifted back towards fossil fuel-powered vehicles. Some of these have powerful engines and would be categorized as gas guzzlers. “The refocus on petrol and hybrid vehicles, which both use internal combustion engines (ICE), follows a slowdown in EV demand in the US that is expected after President Donald Trump cancelled tax credits for EV purchases and proposed revoking rules on greenhouse gas emissions.”

Big Car Companies Go Back To Gas

Jim Farley of Ford has raised the alarm. And, after a tremendous failure in transitioning to EVs, he has begun to retreat to hybrids and gas vehicles, such as his full-sized F-150pickup.

Interestingly, there are two cases related to EVs and the grid. The first is that they will draw so much electricity that this will help cause a shortage, which will trigger rising rates.

The other theory is that EV batteries can be used to add electricity to the grid when they are charged and not being used.

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