The RESALE value of Electric Vehicles(Evs) The Unfortunate Future and Present Reality of Electric Vehicles – November 3, 2023,
The current economic and financial model of electric vehicles needs to change, and I do think change is on the way and consumers, are beginning to anticipate change is coming by NOT buying EVs.
So EVs revolve around SLAVE Labor, and government subsidies; cobalt mines mostly found in the Congo in central Africa is, a slave market, and all participants involved in this slave market are DRAGGING their feet on the issue, and it’s one of the reasons, there appears to be little pushback against China in regards to EVs.
Because if private companies tied to the Chinese Communist Party are selling to refined cobalt and even lithium to Western-based companies, those Western companies can CLAIM that they had no idea their lithium or cobalt or any rare earth material is linked to slave labor, as they were merely following the rules.
However, if the slave labor problems tied to EVs are solved, OPERATIONAL costs will jump, which equates to government subsidies to EVs going up. I like to remind people that EVs without government assistance aren’t a business.
There’s no history of modern EVs being sustainable WITHOUT government subsidies. Tesla, which was the global trendsetter in terms of making EVs cool, can’t break even, their Stock price and FUTURE value appear price, but the way their company is currently structured is not a profitable enterprise, the stock value of tesla is based on PRICE PERCEPTIONS of the future.
The EV real sale market isn’t there, as more people are becoming knowledgeable about what happens to an EV once the BATTERY gets old. The entire EV revolves around the BATTERY and I’ve only seen one company in China even address the EV battery problem.
By that I mean, there’s a Chinese EV company that imagines a world where charging an EV battery is left to a CENTRAL location and instead of charging a car battery, your car battery is REPLACED at what would be the equivalent to an EV gas station.
Now in order for their plan to work, all cars would have to use the same or similar batteries, and I don’t know what that would look like in practice, but at the very least I gave that company an “E” for effort.
Because charging a car battery is either long or it’s expensive. If you get the quick charge option, currently that requires DIESEL fuel to power the EV charging station, because not even the grid could handle doing that type of charge, and some are claiming that fast charging degrades the EV battery
Overall Battery Degradation:
Even though quick charging may not cause immediate harm to the battery, repeated and sustained use of fast charging might hasten the battery’s overall decline over time. Reduced energy storage capacity, a shorter range, and a higher frequency of battery changes can all be consequences of this degradation.Does Fast Charging Damage Electric Vehicle Batteries?
Although DC charging(Fast Charging) of EV vehicles is something more people want to see more of, it’s still not fast enough for most people, furthermore, fast charging is expensive, because, after all, it’s using fossil fuels, and the goal for a lot of progressive governments is to phase out fossil fuels.
So when you purchase an EV you’re getting stuck with all the politics involved in the process, along with the potential of your battery becoming faulty, whch automatically makes your car worthless.
Then there’s the INSURANCE problems, for example, EVs are heavy, the weight of the average EV is about 6000 pounds, and the average weight of a pickup truck is between 4,000 – 7,000 lbs.
Have you seen the roads? A small car weighs around 2600 pounds, while a large car weighs around 4400 pounds. Meaning that your average EV weighs twice the size of your regular combustible engine car. The weight of cars leads to the destruction of roads, which obviously lead to more taxes, so you have to think about the damage EVs will cause to roads.
The economics of EVs as a whole presents an argument that you should wait for the EV to degrade before purchasing it, because, unlike combustible engine cars, even if an EV sits on a car, it’s actually degrading in value in a manner that a combustible engine auto doesn’t.
The gas that powers the EV is in the car, while it waits for a buyer, and that battery under certain weather conditions doesn’t perform well, and can actually accelerate the degrading process.
Consumers talk and even if someone wants to see fossil fuels phase out, they’re probably still going to wait until EV automakers solve these problems before leasing or financing what looks to be a money pit. Another problem I’m hearing about related to EVs are insurance rates and insurance company demands for EVs.
This industry still needs to evolve.
Interesting times ahead!