In recent years, the world has seen a surge in the production and consumption of electric vehicles...
Electric vehicles (EVs) are the future of the automotive industry, and many automotive companies are vying for dominance in this field. However, the growth of EVs in the United States is facing some significant challenges right now. Two massive obstacles are the high interest rate and the UAW strike that is gripping many of the top automakers. There are also parts of the country where EVs are seen as a "woke" agenda, which makes it even harder to gain traction. The question we must ask is – can EV growth stall until the end of the decade?
The first hurdle that EVs face is the high interest rate. Americans need help to make ends meet as food and energy costs skyrocket with the high inflation rate. Purchasing a new car right now is very expensive, and many people are hesitant to add another expense when they are already struggling. Car notes and house notes have become the most significant expense in an average family's budget, putting a substantial dent in their financial security. This trend is a far contrast from 50 years ago when food made up the bulk of monthly expenses. Inflated market prices coupled with high-interest rates leave the average taxpayer unable to afford a new car. This financial hurdle has affected all car sales, including electric vehicles.
The second obstacle to EV growth in the United States right now is the UAW strike gripping many of the big three – GM, Ford, and Stellantis. The union's unreasonable demands have put these companies at risk of falling behind competitors like Tesla and Chinese electric car manufacturers. The association has halted production lines, causing delays and layoffs. The impact is significant, and the companies risk running out of money before they catch up with their opponents. Additionally, the roll-out of new electric vehicles has been slowed down by ongoing strikes and labor disputes. For instance, GM recently announced three significant delays regarding their electric pickups from their Orion plant that makes their Ultium cell and cited soaring costs as the chief issue.
The third potential contributor to stalling EV growth in the United States is FUD, also known as fear, uncertainty, and doubt. In many parts of the South, EVs are deemed a "woke" agenda and are met with hostility by conservative communities. This attitude, along with looming economic concern due to inflation rates, makes it challenging for EVs to gain traction in certain areas. FUD can harm the EV industry's expansion in parts of the country already struggling with buying or maintaining EVs. By propagating misinformation and negative sentiments, it risks sabotaging a new green economy that is set to dictate the future of the planet.
The EV industry has been making strides in terms of innovation, affordability, and environmental awareness. However, it is encountering some challenges at present. The issues of inflation, widespread labor disputes, and FUD are potential hurdles that could hinder or stall the growth of an industry that is vital to the future of our planet. As companies continue to address these issues, it will take the collective effort of government, industries, and communities to overcome these challenges and ensure that the shift toward EVs continues unabated. The transition to clean energy resources is a hopeful venture worth negotiating, regardless of the challenges that lay ahead.
Pic Credit - UAW Interest Rates FUD
GM EV truck delays - Orion Plant
