Today’s article came from the headlines bundled by the Drudge Report. I still skim the Drudge Report, even though it can be annoying in the sense that it seems to promote the more ridiculous headlines. It nevertheless feels like it has its fingers on the pulse of American newsrooms. And the headlines for me are at a sufficient depth of coverage to suit my needs for most stories on a day-to-day basis.
Today’s article was published on MarketWatch, but it is actually an opinion piece from an op/ed syndicator, the mention of which made me think, “Gee, are those still around?” The headline grabbed me from Drudge, though: “Evidence EVs are a fading fad”. This is part of Drudge’s steady campaign to taunt Elon Musk. It’s worth mentioning that taunting Elon Musk (and Trump, whom Drudge also taunts) is enjoyable and free entertainment. But I digress.
From the article:
According to Edmunds, EVs tend to sit on dealer lots for about three weeks longer than gasoline-powered cars. With Mercedes Benz units languishing for four months, the company’s chief financial officer recently acknowledged that the market is a “pretty brutal space.” Customers are staying away despite a price war in which Ford, Tesla, and GM slashed EV prices by 20%, on average, leading Ford to lose $36,000 on each unit sold.
At the same time, state governments have been pumping EVs with enormous subsidies, even as their own budgets are bleeding red. California still pours $7,000 into each new EV (on top of the maximum $7,500 federal credit), despite reporting a record $68 billion budget deficit. New Jersey sends a $4,000 check to EV buyers, despite shrinking revenues. [Edited to remove the clutter of stock-prices.]
In view of yesterday’s piece (thanks again, Josh!), one might suppose that state tax subsidies for a luxury-segment product are an extravagance for the wealthy that runs contrary to egalitarian redistribution efforts. And one would be right!
Read the rest of the story for some eye-popping statistics.
Much of this gross misallocation of taxpayer spending to boost EVs has emanated from the Inflation Reduction Act. There’s lots and lots more to say about its multiple hare-brained ideas cast into grossly market-perverting statute. Watch this space.
EVs were probably an idea worthy of consideration that was not going to get a lot of study without any subsidy, so I can't say I'm opposed to all such subsidies. However, that does not mean they should be never-ending. As with other legislation, I think such programs should have built-in review steps at which cancellation is a possibility so taxpayers are not endlessly on the hook. Let me rephrase that. Cancellation should not be a possibility. Renewal should be fully questioned and, if not found justified, cancellation should be automatic.
Good morning! Colder but sunny.
Re EVs: a friend was in town recently and needed to rent a car. Market demand was such that an EV was by far the cheapest option.