This Week in EV: Shortfall
Tom Clarke
EV Product Manager at Parkopedia | This Week in EV | Advisory Board Member at Voltric | MBA | CMgr FCMI
We kick off this week In the UK where new EV registrations were up 21% in January on the previous month but only 14.7% of all new cars sold were electric cars. Given the ZEV mandate which came into force this year requires 22% of new cars sold to be zero emission that means OEMs were 12,000 short of meeting the target in January. If companies miss the target there are fines and if this shortfall isn’t made up later in the year it’ll cost the OEM’s a ￡178 million fine! If this shortfall continues throughout the year it’ll translate to a ￡2 billion fine. It’s clear that price is the biggest issue for consumers so OEM’s need to cut the price or government support is needed. Maybe the potential fines could be used to subsidise EV ownership or accelerate the build out of the charging network
Arrival has finally gone into administration in the UK. Arrival had at one point had a ￡9 billion valuation and its micro factory concept had shown real promise as a way to produce their electric vans but you have to burn through a lot of capital before you can make money as a EV manufacturer and it seems Arrival has finally run out of road. Of the 172 people employed 40 have already been made redundant, hopefully a buyer comes in and the remaining staff are kept on.
It also looks like Tesla is preparing for a round of redundancies Managers at the company have been asked to identify critical members of the team. No idea of the size of the layoffs but it grew headcount last year by 12,000 so this might just be one of the usual corrections companies go through or it could be part of a bigger cost cutting drive as the company looks to maintain margins as it cuts prices.?
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Over in the states Ford owners are getting access to the Tesla Supercharger network, the largest DC rapid charging network in the country. Drivers will be able to use the FordPass app or use the vehicles infotainment system to start a charger so it’s going to a be a remote start rather than a plug and charge setup
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