Tom1200 said:So during the 24hrs race coverage most commercials were touting new EVs.
Of late I've been really struck by the fact that I don't see EVs replacing ICEs. Here's why.
First: at current they are not a very good business model; I won't go into the whys but just say the profit margins aren't there.
Second: after you add in the increase emissions of EV production & the inevitable increase in emissions from building EV infrastructure the percentages of reduced emissions are low.
The numbers I've seen vary as many studies are banking on numbers that can't be confirmed for several years. I've seen as low as 5% difference over the likely lifetime of the vehicle and as high as 25%.
Even if we use the 25%, the emissions due to automobiles in US is only 16%. That means we are looking at a 4% reduction if ever car on the road is an EV. I am highly skeptical of that it will be as high as 4%. We may end up with as little as 1% reduction.
I think in 5-20 years as more people realize that EVs are not making any really meaningful changes in overall global emissions they won't feel compelled to give up their ICE powered car. This was all to save the planet.
The other factor is road improvements are fueled by the gas tax; at some point EV owners are going to start getting hit with some sort of road usage tax (wildly unpopular) and be none too happy about it.
Due note as Nostra-Thomas I'm usually wrong about future predictions but at the moment this is where I'm at. Feel free to eviscerate my thinking.
Tom you are partially right. Legacy manufacturers are losing money on each EV they make. GM is losing $9000 on each one but they have only made 20,000 Bolts this year, 6 Cadillacs, and 2 Hummer's as of April 16
Ford is losing $20,000 on each EV they sell .
Tesla is making $9000 profit on. each EV. Plus employees are making an average of $33.76 / hr
If you watch them building them in their Giga factories you understand why. In short it's efficiency.
Plus the biggest market of all. The less than $30,000 car. Which is forecast as being 700 million units. Elon Musk is saying that the New Mexico facility will manufacture 2 million units by end of 2024.
The model 2 will sell for $25,000 minus the full $7500 IRS rebate so $17,500 !!!!
manufacturing costs will be 1/2 of of the $50,000 Tesla model 3 Elon Musk clearly laid out how that would be achieved.
Back to legacy manufactures. Ford is in debt 100 billion dollars and is forecasting the need to spend 500 billion more to be competitive.
GM is close to 200 billion in debt with even greater amount of borrowing required.
Yet GM and Ford are expected to be one of 10 companies out of 90 still in business in a decade.
Not surviving are any Japanese manufactures. European manufactures will equally be decimated. Yup Jaguar is gone.
It's telling that both GM and Ford are pulling out of the Chinese market Like Ford has pulled out of Europe.
Next, the Tesla super chargers. Elon musk can make those chargers in New York for 10% of what his competitors can. And they have a wonderful record of working!!! Since Tesla is taking advantage of the incentive Washington is offering. Some of the Tesla superchargers will accept competitors. For example if there are 16 superchargers 4 will accept Fords, Chevy 's, VW's. Etc. In addition to Tesla.
500,000 chargers across country. Tesla's New York Giga factory is capable of creating 10,000 units annually and 20,000 units annually by next year. ( profit from charging is another major source of income for Tesla. )
The new Sodium Lithium batteries. Are both lighter and cheaper than previous batteries, Lithium is not the scarce commodity claimed. And with the proven inventory prices are coming down. Elon musk's target is 50% of current.
Tom you are right. Building new efficient factories will cost money and materials. But to continue to use the old factories simply won't be viable. It's why so many companies won't survive.
But pollution wise, it's trifling along side of war.
In that regard has anyone noticed the major change in American's defense program?
Hint; count the number of super carriers and the number of destroyers.
Ask yourself why the change?
Nope. It's not one party.it's been going on for the last 5 presidents.