The Electric-Vehicle Bubble Starts to Deflate

The Electric-Vehicle Bubble Starts to Deflate

It’s ironic, to say the least, that the U.S. is seeking to imitate China’s economic model at the moment that its industrial policy fractures. Look no further than its collapsing electric-vehicle bubble, which is a lesson in how industries built by government often also fail because of government.

It’s always a bad idea when the government tries to nudge us into something.  If EV’s are a great idea, the market will recognize that without the need for carrots and sticks.  After all of the lying and bullying with regard to Covid, we don’t believe what the government tells us.  Their motives are suspect and their thinking is muddled.

Ford recently reduced its EV production targets as its losses and unsold inventory grow. At the end of June, it had 116 days of unsold Mustang Mach-Es, and GM’s electric Hummer had more than 100 days of supply. And this is in a growing economy.

Electric vehicles have a limited range, recharging takes hours and they catch on fire.  Some consumers may overlook these features, and they are welcome to buy one.

From a policy perspective, we don’t have a bunch of nuclear power plants generating cheap and abundant energy.  Pushing to electric makes no sense until we’ve got the nukes.

Our grid is not robust.  My power went out for three hours yesterday while the weather was sunny and mild.  Fix the grid.

Toyota, my choice in vehicle manufacturers, doesn’t go in for fads so my next vehicle will be another conventional Tacoma.

With all of the technological innovations we have, more of us should be richer and more comfortable.  Governmental interference is pissing away the future we should be enjoying.