EV Update: Will The Market Survive The
Expiration Of The Federal Tax Credit?

Same as solar. It will collapse as well.

Kentucky was to build 2 giant battery factories off I-65, about 60 miles south of Louisville. Governor Andy was bragging how many jobs were going to be produced once they were up and running. Once Factory #1 started construction, plans to build #2 were scrapped. With EV's on the way out, and Factory #1 almost completed, its rumored that it may never open. BTW, Governor Andy is going to run for President in 2028

I hope the loss of tax subsidies collapses the already shaky market for EVs.

Re #2. Panasonic is building a new battery plant in rural Kansas, near me, with huge state subsidies. I hope it is never completed.

No, not without taxpayer "help."

EV cars started out the wrong way. They started out building a luxury car that cost in the thousands when what was needed was a superior golf cart with windows a heater, and wind up windows. EV's are good for a hundred miles without a charge, which would have been good for a cheap ride to work and back they are use less for long trips. If they had built a version of a 1058 VW wind up windows, cheap upholstery, no air conditioning, radio optional and sold it for $15,000 dollars for commuters they may have worked, still might.

meant o say 1958

My 2011 Toyota FJ Cruiser has never had a mechanical problem or internal repair. However, it has 186,000 miles and I worry that time will tell...So I saw that Toyota is selling the first new Cruiser model in years and thought I'd check it out. First, it costs @ $68,000. My FJ weighs 4,000 lbs. and gas mileage is really low. Then I see that the new Cruiser is hybrid. So now we have double the parts that can go bad and need repair. I can buy a lot (!) of gasoline for the $68,00 it would cost for me to buy a new car with more problems. And gas costs are going to go down now that there will be more drilling here. If and when it costs me more than $28,000 to repair my god old FJ, I'll consider purchasing a new car with fancy problems.

So long as there are enough virtue signaling leftists with cash to burn. Regardless. Without the tax incentives, the manufacturers might have to lower their costs and prices. I suspect that the subsidies are why the prices are high to begin with. People will pay more upfront, knowing they are getting some back. And the manufacturers know this. Despite the obvious flaws of EVs, there is a place and a market for them. If all of my driving was local, too and from the grocery store, I might consider one.

Will The Market Survive The Expiration Of The Federal Tax Credit? They could have a Fire Sale...

If EVs and solar panels survive on their own value/price in the market we should have no issue. Their time will have come. But I doubt if they will.

I find it interesting that a spike in EV sales is predicted. I would suspect that most people that want an EV already have one. I also suspect that many that bought them with stars in their eyes are now regretting the realities surrounding EVs. Finally, I suspect that as soon as the tax credit expires, manufacturers will drop prices to dump excess inventory while at the same time discontinuing to build new EV inventory that they might be stuck with. The EV credits and the CAFE standards caused market aberrations. The market will take a while to settle out but EVs are on a downhill trajectory. The promise that lots more charging stations would be available has also probably gone poof. The inconvenience of trying to find a working station that does a fast charge is going to become a cement block around the EV industry's neck. People need to sit somewhere for 4 -10 hours to get their car charged to 80%. You need to plan your long trips around your ability to charge your vehicle. Also, you know all that money you think you are saving? Well, in 10+ years you will need to replace your battery for $5,000 to $20,000 dollars. Do you think you will still be $$ ahead then? Plus, as you approach that time, your trade in value drops because anyone that might buy your vehicle KNOWS that they will have to pay that bill, even if you don't. EV owners are mostly delusional about their vehicles and excessively self congratulatory about how they are helping the environment. Now, without subsidies, it's THEIR money to waste.

Re #6, nope, that's what they tried first Look up a Vanguard Sebring EV, which were made in Sebring, Florida 50 years ago. Your description is pretty much a perfect fit for what the Vanguard was, and they didn't sell. I visited the factory and got a production line tour in 1974, IIRC. EVs have been available, off and on, mostly off, for almost 150 years....still "the vehicle of the future"

Here you go...Sebring Vanguard Citicar..... https://en.m.wikipedia.org/wiki/Citicar

That nonsense has to stop. EV's owners don't contribute to the gas tax which is used for highways.

The article's headline is a red herring or logical fallacy, like how to "pay for tax cuts." In a microeconomic sense, the "EV Market" is not currently a true "market," which implies a strictly voluntary arrangement between buyers and sellers. In an EV market, consumers buy an EV because they want the product for whatever reason but are neither bribed or coerced. Government intervention into the marketplace (e.g., subsidies or Federal Tax Credits), inherently coercive, is intended to either subsidize desired behavior or punish through coercive means, undesirable behavior. Perhaps the EV market, will be once again a voluntary fringe activity among vehicle consumers, as it was before democrat government intervention.

They keep including EV leases as sales. They are not sales, they are basically rentals. I wold love to know the percentage of EV transactions that are true sales.