The United States is slowly seeing an increase in the adoption of electric vehicles (EVs) as automakers expand their offerings and stricter emissions laws are implemented. Despite this, most consumers remain skeptical of EV technology and are not purchasing these vehicles.
The upcoming 2024 presidential election will be crucial in determining the future of EVs in the US, as the two major political parties have differing views on the technology. The Democratic Party has been pushing for policies to increase EV adoption, including a mandate that requires U.S. automakers to sell more electric or hybrid vehicles by 2032. However, sales of EVs have slowed in 2024, leading to automakers scaling back their plans.
While EV adoption is growing globally, particularly in China, the US market is facing challenges. High prices of EVs compared to traditional vehicles, oversupply, and lack of demand have led to a saturation point in the market. Automakers like Ford are adjusting their production plans in response to these challenges.
The 2024 election will play a critical role in the future of the US auto industry, with potential shifts in policies depending on the outcome. Despite the challenges, experts believe that EV adoption will continue to increase globally as technology improves and more models become available. Ford is the second-largest seller of electric vehicles after Tesla, according to the company based in Dearborn, Michigan.
In the first half of 2024, Ford’s Model e segment reported a pre-tax loss of $2.46 billion, up from $1.8 billion in the same period in 2023. Despite this, Ford and its subsidiaries posted a $3.16 billion profit in the first half of 2024.
The Environmental Protection Agency announced a new national pollution standard in March, requiring most new vehicles sold in the United States to be all-electric or hybrids by 2032. This rule will be phased in starting in the model year 2027.
The Democratic Party takes credit for the emissions rule and the 2022 Inflation Reduction Act, which offers tax credits for new and used EV purchases. The act has been credited with quadrupling EV sales.
The government plans to spend over $17 billion on building a network of 500,000 electric vehicle chargers, zero-emission transit and school buses, and ensuring domestic manufacturers have the necessary components for EV batteries.
Despite this, analysts believe that the current lack of public confidence in the U.S. charging network is a major obstacle to EV adoption. Additionally, there are concerns that policies to boost EV sales may be scaled back or delayed due to a lack of public interest in electric vehicles.
Out of the worldwide participants, 35% cited the inadequate public charging infrastructure as their reason for choosing not to go electric, 24% mentioned the inability to charge at home, and 21% expressed that the stress of charging was a major concern.
Regardless of the election outcome, electric vehicles (EVs) must address cost barriers to effectively compete with traditional gas-powered cars, alongside the necessity for enhancements in public charging infrastructure.
“EVs need to be cost-competitive,” emphasized Valdez Streaty. “Consumers require a suitable product at an affordable price point with a satisfactory user experience.”
Thus far, according to Lindland, automakers are delivering in terms of product variety. They are introducing electric versions of trucks, SUVs, and luxury vehicles with extended range to meet consumer demands.
While many Americans are facing challenges in affording any vehicle, new or used, industry data reveals that the average EV owner is affluent and possesses multiple cars, including gas-powered ones.
“Encouraging the average American, who seeks value for their money, to purchase the most expensive, least utilized, and highest cost-per-mile form of transport is unrealistic,” Brauer pointed out.
Could you please rephrase that?
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