Last Updated on December 31, 2024
The Hidden Problems of America’s EV Movement- What Needs to Change?
Ever since the first Tesla Model S hit the market in 2012, the global car industry has been on the path of electronification and zero-emissions vehicles. However, such a seismic shift from internal combustion technology to battery-powered cars isn’t as smooth or straightforward as car commercials would let you believe.
In fact, the road to broad adoption of EV models has been pretty bumpy and challenging, although there is a rising number of electric vehicles on our streets. Electric cars introduced a new concept of driving, charging, servicing, and selling that is not as compliant with the doctrines that customers are accustomed to. But, the whole thing is a bit more complicated, and several problems are slowing down the implementation of new technology on a broader scale.
Charging Times And Infrastructure
The first problem is, of course, the charging. As you probably know, charging your EV takes much longer than fueling your gasoline-powered vehicle. When you stop at a gas station, you can fill your tank in a matter of minutes, compared to several hours you need to top off your battery. Even with the Tesla supercharges or similar high-powered charging stations, we are still talking about charging your car for at least an hour. Most customers are not used to such long downtimes.
Despite massive investments in comprehensive charging networks, the overall number of charging points is still insufficient. So far, only the densely populated urban areas have enough chargers, while rural areas lack such support. Also, cues are common due to long charging times and force drivers to wait even more.
Environmental Concerns
It is true that battery-powered vehicles have zero emissions and are cleaner than the ICE models, but are they better for the global environment?
Not exactly. One of the main selling points of the whole EV scene is ecology and clean air. But nobody talks about the massive impact on the environment in the form of increased stress on the power grid, enormous energy consumption for battery making, and extremely dirty lithium mining processes, which are known to have nasty effects on the environment. Several studies show that, when making one Tesla battery pack, the industry releases as much pollution as an average V8-powered ICE car during 15 years of driving!
We are sure that the need for sustainable energy and clean vehicles must be addressed, but this EV economy model is not precisely green. One of the solutions is to help the grid with solar or wind power, but the percentage is still insignificant.
Affordability
Although there are some affordable EV models, the average price for battery-powered vehicles is still higher than that of comparable ICE cars. The technology and pricey battery packs are to blame, but regardless, not all customers are ready to take the plunge and buy an electric vehicle. Some are afraid of long charging times, and some are afraid of poor resale values. It is no secret that second-hand EVs are cheap, primarily due to battery degradation and poor range. If you consider your car an investment, as you should, it is imperative to know that the resale value of EV’s are not very high.
Ruining The Existing Economy Model
One of the hidden problems of the EV movement is its negative implications on the economic model of vehicle production. As you know, one car manufacturer rarely produces all the parts needed to assemble one vehicle. All industry giants rely on a vast network of suppliers.
Because EVs have fewer moving parts and more straightforward construction, a lot of those smaller companies, along with thousands of workers involved in the assembly process, will be out of work. If we know that the car industry is one of the biggest employers in America, the economic impact will be terrifying. However, essential production is not the only thing the EV revolution threatens. The existing dealer-based sales model is, too. Selling cars directly to the customers is something that Tesla already does and will be standard of the industry in the next few years.
Customer Reluctance
Overall, these issues have resulted in customer reluctance to accept EVs on a massive scale. If we look at the sales number in the last two years, we can see that the EV market share has grown from 713,000 battery-powered cars sold in 2022 in the US to 1.2 million in 2023, which is a significant jump. However, the estimates are that overall sales figures of EV vehicles will stagnate in 2024, primarily due to all the issues we mentioned before. At the same time, Tesla, which once dominated the market, has lost much of its market share due to rising competition from other car brands.
Chinese Competition
The rise of China as a global economic superpower can be seen through its car industry. Not long ago, Chinese car brands were the laughing stock of motoring journalists, but in the last couple of years, they have become one of the leading forces in the EV segment. Chinese car companies understood that their ICE brands would never be as popular or have as good a reputation as European, American, or Japanese brands.
But, with the introduction of the EV revolution, they had a chance at a fresh start and invested heavily in new technologies – becoming a respected force in the segment and threatening to flood the US with cheap and good electric cars. The US has imposed steep import tariffs on Chinese EVs to protect its local industry and restore balance, just like the European Union did. With a 100% import tax on Chinese EVs, they are no longer cheap compared to domestic car brands.
