Woke and broke. Much like soy meat substitutes were supposed to be the huge new thing until it turned out most people were perfectly happy eating meat. A combination of government bribes and pressure, ESG and elite echo chambers led a lot of automakers to start making electric cars that people couldn’t afford and didn’t want.
The nationwide supply of EVs in stock has swelled nearly 350% this year, to more than 92,000 units.
That’s a 92-day supply — roughly three months’ worth of EVs, and nearly twice the industry average.
For comparison, dealers have a relatively low 54 days’ worth of gasoline-powered vehicles in inventory as they rebound from pandemic-related supply chain interruptions. In normal times, there’s usually a 70-day supply.
That’s a little bit of a problem. Remember, the official 5-year-plan is to begin wiping out actual cars by 2030.
Ford expects to sell 2 million electric cars in 2025. That’s up from 61,575 last year. How do you go from selling tens of thousands of cars to millions? The carmaker didn’t even sell 2 million cars in 2023. How does it expect to sell 2 million of a type of vehicle that few want or can afford?
The Ford/Soros investment in Rivian fared poorly with the trendy electric pickup truck manufacturer spending $220,000 to make vehicles it sold for $81,000.
Ford is gonna lose a lot of money.
Ford reported that it’s going to lose $3 billion on electric cars in 2023.
Unlike most automakers, Ford reports its electric vehicle numbers separately, but experts estimate that most car companies are losing similar amounts on the dead end business.
GM plans to sell 1 million electric cars by 2025. It sold less than 40,000 in 2022.
But we’re already getting a preview of the party’s messaging which will blame car dealers for failing to sell consumers the cars they don’t want while selling them the cars that they do want.
There is a significant gap in readiness between consumers and dealers in terms of embracing electric vehicles. According to the survey, 53% of consumers feel EVs are the future and will largely replace gas engines over time, compared to only 31% of dealers. Nearly half (45%) of dealers surveyed feel that EVs still need to prove themselves in the marketplace.
Even though electric cars are piling up in dealer lots, it’s the fault of the dealers that people aren’t buying them.