The electric vehicle industry has been on the struggle bus, hopefully not electric, in the last year. There have been numerous supply chain issues, with little to no achievable tax benefits because of the origin of some of the rare earth minerals. Under Biden’s green agenda, buyers would get huge tax credits, except that most vehicles don’t qualify due to the stringent terms attached to raw material production.
The industry has seen a surplus of minerals due to slashed production from manufacturers. The reasons as to why the industry is struggling like it is are numerous. A lack of charging infrastructure, technological problems with the vehicles, underachieving performance, and a high price tag have severely hamstrung the industry.
One state is reporting that while sales are stronger than expected, they still won’t meet federal mandates, and the state’s governor had some news for federal EV mandates. EVs are gaining more of a foothold in Virginia than most states and account for 9% of all new vehicles sold in the state. Virginia has a state mandate that all new vehicle sales must be electric by 2035, but not everyone is optimistic it is possible.
Liza Borches, CEO of Carter Myers Automotive, said: “We would need to have some significant movement on a more exponential trajectory to hit that number.” Myers works for the group, which operates five dealerships in the state. Despite that, the state remains determined to meet that lofty goal modeled after California’s own state mandate.
Despite the federal incentive that most people can’t achieve and a $4500 rebate that the state ultimately never funded, the segment has continued steady growth in Virginia, but new Governor Glen Yougkin isn’t about to strong-arm citizens into draconian California regulations. He made that much clear while campaigning before the legislative elections.
Youngkin said at the time: “There’s nobody who knows better about what car you want to buy than you. And we are not going to let California determine what car we buy.” Whether it was a tagline or the governor’s real opinion, it is still true. Americans don’t like mandates or regulations, as Covid largely proved.
Also acknowledging that states are free to govern themselves individually, Youngkin also attempted to distance himself from California as any type of guideline for how to run his state. He also said: “If you want to buy an electric vehicle, buy one, that’s your decision — just don’t drive too far. But most importantly, that’s your decision, not California’s and not the government’s.” Mandates and regulations probably aren’t the way to coax a timid consumer into electric vehicles, as the GOP Governor of Virginia is alluding to.
Americans are not going to be easily sold on pricey electric vehicles. The industry has much work to do in terms of quality, performance, and charging infrastructure, among other things. The lofty goal of 2035 is likely unattainable unless the Federal Government and manufacturers get serious and treat EVs like they really believe they are the environmental saviors we have been sold they are.
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