In recent times, electric vehicles (EVs) have been at the center of some troubling developments. Let’s dive into the details to understand the current state of the EV market.
Plummeting Values and Surplus EVs
It all starts with the plummeting value of EVs. As drivers lose confidence in electric cars, the resale value of these vehicles has taken a nosedive. With more people adopting electric cars, there’s an increasing number of them piling up on dealer lots, leading to a surplus of used EVs without buyers. What’s even more striking is that you can now easily find Tesla’s Model 3 for under $25,000, thanks to substantial discounts. If you’ve been contemplating buying a used electric vehicle, this might be an opportune moment to strike a deal.
Ford’s $3.5 Billion EV Battery Plant Halt
Another significant development in the EV world is Ford’s decision to halt work on a $3.5 billion EV battery plant in Michigan. The Blue Oval Battery Park project is experiencing budget constraints due to doubts about the plant’s operational necessity. In essence, Ford isn’t certain if the demand for EVs will justify the investment in this facility. The pause in construction and budget limitations signify Ford’s hesitation regarding the future of EVs.
The Uncertain Future of EVs
The uncertainty about the plant investment might even lead to its cancellation. This facility was expected to employ 2,500 workers and produce batteries for 400,000 EVs annually. Ford’s reluctance to commit to this project hints at the possibility that they anticipate lower demand for EVs than initially projected, even considering all manufacturers in the market.
The US car market typically sells 12 to 14 million cars per year. With 400,000 EVs, that would represent a mere 5% of the total market. Ford’s cautious approach suggests that the EV market might never surpass 10% of the total car market in the foreseeable future.
Battery Degradation in Hot Weather
Moreover, it’s been revealed that EV batteries degrade faster in hot weather, around 86°F (30°C). To mitigate this issue, one suggestion is to leave the battery half-charged in hot weather conditions. While this can help protect the battery from degradation, it does come at the expense of reduced driving range, which goes against the core advantage of EVs.
These developments could be contributing to the decline in the value of EVs and the hesitation of automakers like Ford to invest in EV infrastructure. The future of electric vehicles remains uncertain, and it’s a topic that sparks strong opinions. Feel free to share your thoughts on these matters in the comments below, and let’s continue the conversation about the state of the electric vehicle industry.