Despite the considerable attention and investment directed toward electric vehicles (EVs), they presently make up only about 10% of the US automotive market. The Biden administration, aiming to achieve its 2030 goals, has announced additional funding for EVs and charging infrastructure. However, the pace of EV adoption remains sluggish, attributed to factors such as higher EV prices, recent reports of battery issues in cold weather, and lingering concerns about battery lifespan.
Karl Brauer, Executive Analyst at iSeeCars.com, joins Yahoo Finance to discuss the ongoing investments by the Biden administration in EVs and related infrastructure and whether these efforts will significantly impact EV sales in the United States.
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Karl Brauer discusses the Biden administration’s latest efforts to reduce EV costs for Americans and expand infrastructure. Some consumers may question the viability of electric vehicles, especially in colder temperatures, as evidenced by the unexpected drain on EV batteries. Hertz Global’s decision to sell around 20,000 EVs is driven by demand rather than the challenges posed by cold weather.
Moving on to the Ford F-150 Lightning pickup, Karl provides insights into its significance in the broader context of EV demand. He notes that the initial enthusiasm from early adopters may be plateauing, and the industry must now appeal to mainstream consumers who prioritize factors like upfront costs, ongoing ownership expenses, and resale value.
Concerns about extreme weather conditions, exemplified by recent incidents in Chicago, underscore the need to address real-world scenarios where EVs might face challenges beyond average daily use.
The conversation touches upon the potential existence of an “EV winter,” drawing parallels to the challenges faced by the cryptocurrency market. Market share data from iSeeCars suggests that reaching the first 7-9% of EV adoption is more straightforward than progressing from 9% to 11% or higher. Karl emphasizes the importance of addressing various factors contributing to consumer hesitancy, including extreme use cases and unexpected circumstances, to boost EV adoption beyond the current plateau.