The Flaw in Our EV Stars

Part 2 of The Race to the Prize

The Prize has changed. It is no longer as elitist as The Cup:

or as manipulated as Daniel Yergin's:

EVs Are Piling Up on Dealer Lots as Supply Outpaces Demand

A study shows that the inventory of new EVs is almost double that of gas-powered cars.

The Drive by Rob Stumpf

Automakers across the globe are betting big on?electric cars. Collectively, these companies have invested hundreds of billions of dollars into battery plants, R&D, tooling, and marketing. There's just one problem: EVs aren't selling nearly as fast as they can be produced.

A new study by?Cox Automotive?shows that dealerships across the U.S. are sitting on a significant number of brand-new electric cars. As it turns out, automakers are really good at building new cars at volume—who could have guessed? They're so good, in fact, that the supply of new EVs has outpaced the current demand?way ahead of schedule.

EVs presently make up about 6.5% of all new car sales in the U.S. That number is growing, though, with total electric car sales?projected to break the million-unit barrier for the first time ever in 2023.

Despite the increase in adoption, manufacturers are finding that they are able to produce EVs significantly quicker than they can sell them. This has led to dealers and automakers alike sitting on a large supply of unsold electric cars. Specifically, the industry has enough EV inventory to last approximately 92 days. That's a lot—almost three times the stock from a year prior. And when placed alongside today's 54-day supply of ICE-powered vehicles, it's nearly double the current average inventory. It's also worth noting that the pre-pandemic supply of vehicles as a whole was around 70 days.

Luxury marques and high-dollar vehicles in particular are having a tough time moving new vehicles. The GMC Hummer EV and Audi Q8 E-Tron, for example, have a supply of more than 100 days. Genesis' EV inventory in particular is significantly bloated with a 350-day supply of its?electrified G80 sedan.

People are more conscious of EVs than ever, with between?39% and 51% of new car buyers considering a battery-powered car as their next vehicle purchase. So why aren't they biting on new EV purchases?

New cars are also quickly becoming more expensive. Adding batteries to the mix doesn't help either, and stakeholders at major automakers believe the?cost parity between EVs and regular combustion-powered vehicles is still far away. Consumers who aren't interested in EVs?overwhelmingly cite cost?as the reason for their disinterest, meaning that the battle for EV adoption may be fought at the bank first and foremost. It could also be a reason that Tesla continues to dominate the EV market with its frequent price drops.?

My Comment: The Business Case is that Henry Ford proved long ago -with the Model T - that affordability is a determining factor in what vehicles the consumer chooses to drive.

The ignorance, na?veté and delusions of management have precluded the advance of wisdom as well as technology, especially when they are driven by leadership and?disciplined inspiration.?

A Little Philosophy ( Love of Knowledge)?

There are two categories of people: those who categorize others and those who don’t. - Neil deGrasse Tyson?

Dr. Neil DeGrasse Tyson's stunning case for science and technology.?

Tyson revealed in a 272- word exhortation paraphrasing the 272 words of the Gettysburg Address, that in the year of the address, the bloodiest year of the U.S. Civil War, Lincoln created the U.S. National Science Foundation, a tribute to the role of science, education and morality in leading a more dynamic and fruitful U.S. national economy.

The Saudi Opportunity?

Continued with: The Saudi Opportunity and The Second Invasion of England?

T