Steve Moore, a well-known economist from the Trump administration, has delivered a shocking revelation, suggesting that electric vehicles (EVs) may be heading towards a disaster reminiscent of Ford’s infamous “Edsel” failure in the 1950s.
Moore drew this stunning parallel on “Varney & Co.”: “Remember the Edsel? Ford was so sure it would be a hit. They rolled out half a million units without checking if the public even wanted it. It turned out to be a monumental flop. If the current trends persist, EVs might follow the same fate. Most consumers just don’t seem to want them.”
— New York Post (@nypost) October 30, 2023
This warning arrives as both Ford and General Motors (GM) face significant financial turbulence and supply challenges in their EV ventures. Ford’s latest financial report paints a grim picture, with its EV division registering a loss of a whopping $1.33 billion. This setback follows an earlier $1.08 billion loss, pushing Ford to reduce production of its Mustang Mach-E and scale back its $12 billion investment in the EV sphere.
GM is no stranger to this turmoil either. While they’ve not been as transparent about their EV-specific losses as Ford, it’s evident from their recent reports that they’ve taken a hit of roughly $1.5 billion owing to increased costs and EV sales impacts.
Moore wasn’t shy in expressing his concerns, stating, “Ford is hemorrhaging money, with losses ranging between $40,000 to $60,000 per EV. They’ve taken a gamble, and it’s not paying off.”
Further deepening the crisis, Moore foresees potential bailouts across the automotive industry due to these staggering EV losses. He pointed out the existing government incentives, like the $7,500 rebate for every EV purchase, and subsidies for battery companies. Despite such lucrative deals, Moore highlighted, “Americans still don’t want EVs.”
Gathering insights from various car dealers, Moore shared an alarming observation: “Dealership lots are overflowing with EVs, yet a mere 10% of their customers opt for them.”
He also put forth a potential solution, advocating for a shift towards hybrids that offer both gas and electric options. Moore added, “But there’s a roadblock – government mandates push for exclusive EV production, sidelining hybrids.”
Will EVs ultimately end up as just a footnote in automotive history? Only time will tell.