Summary
- The electric vehicle revolution is unstoppable and has gained momentum in recent years, with new long-range EVs flooding the market that consumers are interested in.
- The current administration may be critical of EVs, but public policy is difficult to change once consumer demand is established.
- Legacy automakers are investing billions in EVs, with the first wave of affordable, desirable EVs just beginning.
- The U.S. government has a history of supporting industries, such as the automotive industry, and the alignment of public and private spending can lead to technological advancements.
- The automotive market is shifting towards EVs due to their value proposition, which includes a better driving experience, lower operational costs, and technological advancements.
Article
The electric vehicle revolution is inevitable and cannot be stopped, with consumers and markets across the globe showing interest and comfort with EVs. In the past two years, the market has been flooded with affordable, long-range, fast-charging EVs that consumers love. In California, EVs hold a 22% market share, while China and Europe are also pushing ahead with electrified vehicles. The federal government cannot stop this revolution, and the only decision left is whether America wants to lead or be left behind.
Despite the current administration’s criticism of EVs, it will be challenging for the president to eliminate incentives and mandates for EVs given the strong public interest in automotive and industrial technology, high-paying jobs, and the performance of electric cars. While some teething issues exist with current EV models, the overall promise of EVs, their simplicity of construction, and reduced maintenance costs make them a better long-term solution. Additionally, costs of EVs are rapidly decreasing, with some models already comparable to internal combustion vehicles in price and offering superior performance and efficiency.
Legacy automakers have made significant investments in their EV efforts, and the market is seeing the arrival of the first wave of affordable, long-range, desirable EVs. The U.S. has a history of government support for industries, such as roads, internet, and traditional automotive, which has played a crucial role in their development and success. Even foreign car plants building gas cars receive government aid, highlighting the intertwined nature of the automotive industry with public support.
While U.S. automakers are making strides in the EV market, Chinese companies like BYD are on pace to overtake Tesla as the largest EV manufacturer, offering EVs at a price point that American companies struggle to match. The U.S. has a history of leading in technological advancements through public and private investments, allowing the country to outpace its peers in various sectors. If the U.S. fails to invest in EV technology today, it risks losing its competitive edge in the future and falling behind global rivals.
Given the investment and value creation potential in the EV market, it is evident that the technology will continue to succeed in the largely capitalist world. EVs offer a better driving experience, are cheaper to operate, and attract interest from customers who often do not go back to internal combustion vehicles once they own an EV. The market is driven by value creation and shareholder interests, aligning well with the strengths of the American economy. Overcoming obstacles like high prices and limited charging infrastructure will be key to driving the continued growth of the EV market.
Overall, the EV revolution is unstoppable, with companies worldwide investing in EV technology and consumers increasingly embracing electric vehicles. While challenges remain, such as high prices and charging infrastructure, the market will mature and overcome these obstacles. Any smart American company will recognize the growing demand for EVs and ensure they are not left behind in this transformative shift in the automotive industry.
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