Snitz explains: Tesla has been putting the screws to the Big Three and EU's car manufacturers this year. Musk has been cutting his fat margins to drive these guys completely out of the EV business. It's working like a charm. While they're losing money on each EV they produce (they have infinitely higher production costs) Tesla in the first three quarters of this year has already outsold all of last year. Game, set & match. The only players Telsa needs to watch out for are the Chinese (like BYD).
Number of Tesla vehicles delivered worldwide from 1st quarter 2016 to 3rd quarter 2023(in 1,000 units)
Car Dealers to Biden: EVs Aren’t Selling
Some 3,900 sellers ask for a reprieve from his onerous sales mandate.
By The Editorial Board, WSJ
Nov. 28, 2023 6:42 pm ET
You can subsidize a buyer into the auto showroom, but you can’t make him buy. That’s the word from some 3,900 car dealers across the country who on Tuesday wrote President Biden that electric vehicles are piling up unsold on their lots. They want relief from his onerous and unrealistic EV sales mandate.
“There are many excellent battery electric vehicles available for consumers to purchase,” the dealers write in their letter to the President. But they add that “electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations,” and “BEVs are stacking up on our lots.”
Dealers have a 103-day supply of EVs compared to 56 days for all cars. It takes them on average 65 days to sell an EV, about twice as long as for gas-powered cars. EV sales are slowing though manufacturers have slashed prices and increased discounts. Consumers paid on average $50,683 for an EV in September, compared to $65,000 a year ago.
The reason, as the dealers explain, is that “early adopters formed an initial line and were ready to buy these vehicles as soon as we had them to sell.” But most consumers aren’t “ready to make the change,” in part because EVs are still too expensive. Many apartment renters also don’t have garages for home charging, and public charging networks are spotty with one in four not functional, according to one study.
“Customers are also concerned about the loss of driving range in cold or hot weather,” the auto dealers say. “Some have long daily commutes and don’t have the extra time to charge the battery. Truck buyers are especially put off by the dramatic loss of range when towing.”
The dealers want the Administration to “tap the brakes” on its proposed tailpipe emissions rules that would effectively mandate that EVs comprise two-thirds of car sales by 2032.
Auto makers might meet the government’s quotas in leftwing cities where Teslas are a political fashion statement, but price and convenience matter more elsewhere.
A new study from the University of California, Berkeley’s Energy Institute at Haas finds a “strong and enduring correlation between political ideology and U.S. EV adoption.” About half of EVs registered as of last year were to “the 10% most Democratic counties, and about one-third to the top 5%,” the study notes. This suggests “it may be harder than previously believed to reach high levels of U.S. EV adoption.”
The dealers’ letter is an important political signal that progressive climate coercion isn’t as popular as Democrats think. Americans don’t like to be told what to do or what they must buy. As the dealers put it, “many people just want to make their own choice about what vehicle is right for them.” Imagine that.