Just the latest in bad news for companies that are betting against, or trying to beat, Tesla. It just doesn't seem to be working out well for them. A week or two ago, VW/Audi group said it was having problems selling many of its EV models and was scaling back. Now Ford seems to be announcing similar news.
My takeaway is not that Tesla is so much better or more available, but more that the EV market is just not very strong and consumer demand for pure Electric Cars is simply not there outside of the more affluent families. Any way you slice it, an EV is simply an expensive purchase. MOST families can NOT afford ANY new vehicle and instead are buying used vehicles. Since the upfront cost of all EVs is higher than an internal combustion or regular hybrid vehicle, working families simply don't consider an EV to be a viable choice.
For the upper classes that actually purchase new vehicles, there is demand, especially in urban/Suburban areas with charging infrastructure, but many EV choices seem to be as second vehicles. I think rising electric rates have also contributed to the fact that running EV versus Hybrid vehicles is no longer much cheaper on a total cost basis over a 5 year time horizon, and in some cases an EV can be more expensive to run, when finance costs, etc are calculated.
Full story at the link below:
My takeaway is not that Tesla is so much better or more available, but more that the EV market is just not very strong and consumer demand for pure Electric Cars is simply not there outside of the more affluent families. Any way you slice it, an EV is simply an expensive purchase. MOST families can NOT afford ANY new vehicle and instead are buying used vehicles. Since the upfront cost of all EVs is higher than an internal combustion or regular hybrid vehicle, working families simply don't consider an EV to be a viable choice.
For the upper classes that actually purchase new vehicles, there is demand, especially in urban/Suburban areas with charging infrastructure, but many EV choices seem to be as second vehicles. I think rising electric rates have also contributed to the fact that running EV versus Hybrid vehicles is no longer much cheaper on a total cost basis over a 5 year time horizon, and in some cases an EV can be more expensive to run, when finance costs, etc are calculated.
Full story at the link below:
Ford Expects to Lose $4.5B on EVs This Year
Automaker Ford estimates its electric vehicle division will lose $4.5 billion this year, $1.5 billion more than it predicted in March.
Fortune said Ford's revised forecast comes from a sluggish receptiveness by consumers to the new battery-powered vehicles.
So far this year, Ford's EV division has shed nearly $1.8 billion, Fortune reported.
Ford now also estimates it will reach an annual production rate of 600,000 units a year by 2024, Fortunate noted. Ford had been hoping to hit that number by the end of this year.
Ford reduced prices on some of its electric cars last week by as much as 17%.
Ford CEO Jim Farley and Ford can be patient about electric vehicles, due in part to a strong performance in the rest of the company
Fortune reported that Ford generated $45 billion in revenue last quarter, a 12% increase year on year. The company reported strong growth in its commercial vehicle segment where revenue grew by 22% to hit $15.6 billion.
Reuters reported that the U.S. government plans to end purchases of gas-powered vehicles by 2035, under an executive order signed by President Joe Biden in 2021, in an effort to lower emissions and promote electric cars. . . The government owns more than 650,000 vehicles and purchases about 50,000 annually. . .
Fortune noted that while demand for EVs is growing, it's not enough to keep pace with increased production. Fortune said over 90,000 electric cars and trucks are on dealer lots, four times as many as a year ago. . .
and my royalties are 5% of for the royalties month last year. Thanks Joe your cutting in to my Retirement plan
