# Why the EV Revolution Just Stalled

An episode of [Patrick Boyle On Finance](https://invisiblenetwork.ai/podcast/1547740313), 22 Dec 2025, 28 min.

Audio: https://traffic.megaphone.fm/APO4370014338.mp3

Three years ago, the global auto industry was gripped by a collective hallucination. CEOs promised us that the internal combustion engine would be dead by 2035 and that legacy automakers were just one battery factory away from a trillion-dollar valuation.That narrative has now collided with economic reality.In this video, we analyze the collapse of the "inevitability" narrative. We look at why Ford has been forced to take a staggering $19.5 billion write-down, why the European Union is quietly dismantling its own petrol ban, and why—despite billions in subsidies—automakers are still losing $6,000 on every electric vehicle they sell.We examine how the industry confused a political project with consumer demand, leading to a market where the cars are too expensive for the middle class and too unprofitable for the manufacturers. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel: Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

## Transcript

[0:00] Three years ago, the global auto industry was gripped by a
[0:03] collective hallucination. Mesmerized by Tesla's trillion
[0:07] dollar valuation, traditional car makers convinced themselves
[0:11] and their investors that they were just one battery factory
[0:15] away from their stocks. Trading at similar multiples,
[0:18] Volkswagen promised that 70% of its European sales would be
[0:23] electric by 20-30, a figure they later bumped up to 80%.
[0:28] Stelantis went further, pledging a 100% transition.
[0:33] Even General Motors, a company not historically known for rash
[0:37] technological bets, set a 2035 deadline to abandon the eternal
[0:42] combustion engine entirely. Those promises were easy to make
[0:47] a few years ago, when interest rates were zero and politicians
[0:51] were writing checks. They're much harder to keep
[0:54] today. The reality check arrived this
[0:57] autumn with brutal clarity. In September, Donald Trump
[1:01] abruptly withdrew the $7500 consumer tax credit, a subsidy
[1:07] that often tipped the economic scales in favour of going
[1:11] electric. Combined with his rollback of
[1:13] emissions regulations, the artificial floor supporting the
[1:17] US electric vehicle market has effectively collapsed across the
[1:22] Atlantic. The retreat is different in
[1:24] mechanism but identical in direction.
[1:28] The European Commission, bowing to intense pressure from its
[1:31] auto manufacturers, unveiled plans to dilute its 2035 ban on
[1:36] new combustion engine cars, the single biggest walk back of
[1:41] green policy in the block's history, by replacing a hard
[1:45] with a 90% target. Brussels has quietly conceded
[1:50] that its flagship industrial policy was colliding with
[1:53] economic reality. We're witnessing the end of the
[1:57] Field of Dreams era in EV manufacturing.
[2:00] Governments and CE OS spent the last half decade operating on
[2:04] the assumption that if they built the EVs, the buyers would
[2:08] come. The buyers, however, have
[2:10] refused to follow the script. The revolution has simply
[2:14] followed the money but was sold as global inevitability has
[2:18] dissolved into a patchwork of regional markets defined
[2:22] entirely by who's writing the biggest checks.
[2:25] While global EV sales are up, driven almost entirely by a
[2:29] booming subsidized Chinese market, the Western consumer has
[2:33] proven far more skeptical. In North America, EV sales have
[2:38] actually contracted by 1% this year.
[2:41] Far from the exponential pace promised in PowerPoint decks,
[2:45] the industry is grinding out a messy, fragmented reality where
[2:49] geography defines adoption. The industry priced itself for a
[2:54] global takeover over. What they got instead was a
[2:57] standoff in the West and a price war in the East.
[3:01] Consumers have proven stubbornly resistant to purchasing vehicles
[3:05] that often cost more, depreciate faster and require more planning
[3:10] to refuel than the cars they already own.
[3:13] While the E US timeline to end petrol's dominance once looked
[3:17] ambitious, it now looks like a relic of a different economic
[3:21] era. The industry is waking up to a
[3:24] hard truth. The transition to
[3:26] electrification was priced for perfection, but the customer
[3:30] experience has been anything bad.
[3:33] For most households, a vehicle is the second largest purchase
[3:36] they'll ever make. They accept that it'll lose
[3:39] value the moment it leaves a dealer's lot, but they rely on
[3:42] that depreciation being predictable and gradual.
[3:46] The electric vehicle industry broke this unwritten social
[3:50] contract. Buying a new EV in 2022 turned
[3:54] out to be the financial equivalent of setting a pile of
[3:57] cash on fire to verify that it was flammable.
[4:01] It worked, but it was an expensive lesson.
[4:04] Buyers have painfully discovered that these machines age less
[4:08] like a vintage Porsche and more like an iPhone because the
[4:12] technology moves so fast. Today's cutting edge EV is
[4:16] tomorrow's obsolete gadget. We saw this play out brutally in
[4:21] the UK used car market, where Car Wow showed last year that a
[4:26] one year old Audi E Tron was trading for 27% less than a
[4:31] comparable 1 year old model did just a year earlier, while its
[4:36] diesel equivalent held its value.
[4:39] This financial pain is not limited to the sticker price,
[4:43] it's compounded by long term reliability fears.
[4:46] Consumer Reports recently ranked Tesla as the least reliable used
[4:51] car brand in America, identifying the very vehicles
[4:54] hitting the second hand market now as frequent visitors to the
[4:58] repair shop. A used Tesla might look like a
[5:01] bargain at current prices, but that discount isn't a gift.
[5:05] It's the market accurately pricing in the headache of
[5:08] owning the least reliable used car on the road.
[5:12] Hertz, the rental giant, worked this out the hard way.
[5:15] They dumped 20,000 EV's from their fleet, explicitly citing
[5:20] high repair costs and a lack of customer interest.
[5:24] When the professionals whose entire business model relies on
[5:27] managing fleet costs and residual values flee the asset
[5:31] class, it's a warning sign that the retail buyer should probably
[5:35] heed. The manufacturers are now
[5:38] admitting that the map doesn't work for them either.
[5:41] This week, Ford announced A staggering 19 1/2 billion dollar
[5:45] write down as it scrapped plans for its flagship all electric
[5:50] F-150 pickup truck. In 2021, CEO Jim Farley hailed
[5:55] the Lightning as the truck of the future.
[5:58] Four years later, it's been consigned to the past, a victim
[6:02] of sales that collapsed by 72% year on year.
[6:06] Ford is not alone in its expensive retreat.
[6:09] General Motors recently booked a $1.6 billion charge to scale
[6:14] back its own EV production, while Volkswagen is preparing to
[6:18] close a German plant for the first time in its 88 year
[6:22] history. We should call these moves what
[6:25] they are capitulations. Traditional automakers have
[6:29] realized that without massive subsidies to mask the steep
[6:33] depreciation and higher running costs, the truck of the future
[6:37] is a product that very few people will want to buy today.
[6:42] Even the high priest of the EV revolution, Elon Musk, has
[6:46] quietly rewritten his own gospel.
[6:49] For years, the foundational myth of Tesla's valuation was the
[6:53] promise that it would be selling 20 million cars a year by 20-30,
[6:57] twice what Toyota sells today. But with sales hovering below 2
[7:02] million units following two consecutive years of decline,
[7:06] that ambition has quietly evaporated.
[7:09] Even the most bullish analysts have stopped defending a target
[7:13] that would require the company to grow tenfold in just four
[7:16] years. The exponential growth story is
[7:19] now dead, and faced with a shrinking car business, the
[7:23] company has done what any corner tech firm would do.
[7:27] It pivoted to science fiction. The narrative has shifted
[7:31] entirely from shipping cars to developing humanoid robots, many
[7:36] of which will be shipped to Mars to working colonies and full
[7:40] self driving software products that are perpetually coming next
[7:44] year but conveniently don't need to be reported on a monthly
[7:47] sales Ledger today. By promising a future of space
[7:51] robots, flying cars and robo taxis that don't jet exist,
[7:55] Tesla's managed to distract investors from the uncomfortable
[7:59] presence. They are a car company that is
[8:01] selling fewer and fewer cars in the modern stock market.
[8:06] A robot in the Bush is worth significantly more than two cars
[8:10] in the hand. Investors famously prefer a
[8:13] great story about the future to a spreadsheet showing declining
[8:17] margins in the present. The financial carnage at Ford
[8:21] was not limited to the headline grabbing $19.5 billion write
[8:26] down. That figure is essentially an
[8:28] accounting adjustment, A belated acknowledgement of capital
[8:32] wasted on tooling and factories for vehicles that will never be
[8:36] built. But on top of that, Ford's
[8:39] electric vehicle division, Model E, has been incinerating actual
[8:44] cash on the vehicles it did build.
[8:46] The division recorded a $5.1 billion our operating loss in
[8:50] 2024 and lost another $3.6 billion in the 1st 3/4 of 2025.
[8:58] These losses are symptoms of a business model that
[9:01] fundamentally conflicts with the American consumers non
[9:05] negotiable demand for size. In the United States, the
[9:09] passenger car is practically extinct.
[9:12] Trucks and SUVs now make up 80% of new vehicle sales.
[9:17] For decades, this preference was a goldmine for Detroit.
[9:21] In the internal combustion era, the manufacturing math was
[9:25] compelling. Big cars cost only marginally
[9:28] more to stamp out than small cars, but they could be sold for
[9:32] significantly higher prices. As Ford CEO Jim Farley
[9:36] explained, in the gas powered world, the bigger the vehicle,
[9:40] the higher the margin. Electrification inverts this
[9:44] logic. In the EV world, the bigger the
[9:47] vehicle, the bigger the battery. You need to move it.
[9:50] Since the battery is the single most expensive component,
[9:54] scaling up doesn't increase your margin, it destroys it.
[9:59] As Farley noted, customers will not pay a premium sufficient to
[10:03] cover the cost of massive batteries required to haul a
[10:06] three ton truck across a state line.
[10:10] The The result is a product that pleases no one.
[10:13] To achieve a respectable range, an electric truck needs a
[10:16] battery so heavy that it erodes the vehicle's payload capacity
[10:21] and efficiency. To keep the price affordable,
[10:24] the manufacturer has to eat a loss on every unit.
[10:28] The electric pickup truck once heralded as the killer app that
[10:32] would win over Middle America has turned out to be an
[10:35] engineering contradiction. Recognizing this, Detroit is
[10:40] pivoting to a compromise that engineers love and purists hate
[10:44] the extended range electric vehicle.
[10:47] Ford has confirmed that the next iteration of the F-150 Lightning
[10:51] will not be fully electric, but will carry a small internal
[10:55] combustion engine solely to recharge the battery.
[10:59] This is a tacit admission that for the heavy aerodynamic bricks
[11:04] that Americans insist on driving, the battery only
[11:07] solution is currently a dead end.
[11:11] The fundamental problem facing Western automakers is that
[11:15] manufacturers are losing money on almost every single vehicle
[11:19] while consumers remain reluctant to buy them.
[11:22] Even at the height of the subsidy era, the economics of
[11:26] building EVs in the West were disastrous.
[11:29] Boston Consulting Group reported earlier this year that
[11:33] automakers generally lose around $6000 on every EV sold in
[11:38] America. For pureplay EV stardom, the
[11:41] numbers are equally terrifying, though the picture is diverging.
[11:46] While Rivian finally posted a positive gross profit this
[11:50] quarter, meaning they make money on the car itself before paying
[11:53] overheads, they still posted a net loss of billions for the
[11:58] year. Lucid, meanwhile, continues to
[12:01] report staggering losses, which Bloomberg estimated at over
[12:05] $300,000 per vehicle in late 2023, though that figure has
[12:11] improved slightly as volumes crawl upward.
[12:14] These entities operate less like businesses and more like
[12:17] charities for wealthy early adopters.
[12:21] In the United States, automakers have at least been operating in
[12:25] a protected environment, shielded from the brutal
[12:28] efficiency of Chinese competition by high tariffs.
[12:31] Yet even in this walled garden, they've failed to turn a profit.
[12:36] Ford's Model E division, as I mentioned, last $5.1 billion in
[12:41] 2024 alone, proving that even without having to fight a price
[12:46] war against BYD, the cost of manufacturing batteries in the
[12:49] West is simply too high to generate a return.
[12:53] The industry has also become dangerously addicted to
[12:57] government handouts to move metal.
[12:59] We've seen repeatedly the demand for EVs is not organic.
[13:04] It's purchased in Germany, the continent's largest auto market.
[13:08] EV sales collapsed by nearly 40% when the government withdrew its
[13:13] purchase subsidies. Sales picked back up when new
[13:17] subsidies were provided. When Italy introduced a new
[13:20] incentive scheme offering up to €20,000 euros in buyer
[13:24] subsidies, which is over $23,000, it ran out of funds
[13:29] almost immediately. This stop start dynamic makes
[13:34] industrial planning impossible. Manufacturers are being asked to
[13:38] invest billions in multi decade factory projects based on demand
[13:43] that can evaporate overnight if a finance minister tightens a
[13:46] budget or if a new president signs an executive order.
[13:51] The data seems to show that when the free money stops, the car
[13:54] stops selling. To understand why the transition
[13:58] has stalled, you have to understand who was buying these
[14:01] cars in the 1st place. For the last five years, the
[14:04] industry hasn't been selling to the general public, it's been
[14:08] selling to a niche demographic of wealthy, tech obsessed early
[14:12] adopters. According to Bloomberg, electric
[14:15] vehicles remain overwhelmingly popular among the wealthiest
[14:19] Americans, while interest drops off a Cliff as you move down and
[14:23] the income brackets. The first wave of buyers treated
[14:27] their EVs like the latest iPhone, a status symbol and a
[14:31] piece of cool technology. Crucially, they were forgiving
[14:35] if the panel gaps were uneven, the software had problems, or
[14:39] the doors wouldn't open. They shrugged it off as the
[14:41] price of being on the cutting edge.
[14:44] These are people who view a car door that doesn't quite close,
[14:47] not as a manufacturing defect, but as a quirky conversation
[14:51] starter. They treat their vehicles with
[14:53] the same forgiving attitude that a parent reserves for a
[14:57] toddler's terrible drawing. Importantly, 84% of early
[15:02] adopters had access to home charging and most owned a second
[15:06] gas powered car for long trips. The industry assumed that the
[15:11] next wave of buyers, the mainstream, would behave the
[15:15] same way, and they were wrong. The mainstream buyer is not a
[15:19] tech enthusiast looking for a conversation starter.
[15:23] There are pragmatist looking for a tool.
[15:25] They are cost conscious, skeptical of tech for the sake
[15:29] of tech, and unforgiving of inconvenience.
[15:32] They generally own only one vehicle, park it on the street,
[15:36] and expect it to work seamlessly for 15 years.
[15:40] When this buyer sees a $58,000 car that takes 40 minutes to
[15:45] refuel and might lose 30% of its range in the winter, they don't
[15:49] see the future. They see a downgrade because the
[15:54] early adopters were so enthusiastic, automakers fooled
[15:57] themselves into thinking that they'd solved the puzzle.
[16:01] In reality, they had just picked the low hanging fruit.
[16:05] Crossing the chasm to the skeptical majority requires a
[16:08] product that's cheaper and more convenient than what they're
[16:11] already driving. Right now, the electric vehicle
[16:14] is neither. Nowhere is the disconnect
[16:18] between policy fantasy and industrial reality more glaring
[16:22] than in Europe. On the surface, the transition
[16:25] looks like it's going well. This year, one in five car sold
[16:29] in the EU was purely electric, a figure that dwarfs the adoption
[16:33] rate in the United States, where EVs account for around one in 10
[16:38] sales. In almost any other industry,
[16:41] capturing 20% of a market in a decade would be a triumph.
[16:45] But for European regulators, it was a failure that required an
[16:49] emergency intervention because the emissions targets were set
[16:54] to ratcher tighter every year, regardless of consumer demand.
[16:59] Even this healthy sales volume wasn't enough to save the
[17:02] industry from billions in penalties.
[17:05] The cracks in the system became obvious in May when EU lawmakers
[17:10] were forced to pass an amendment allowing manufacturers to skirt
[17:14] immediate fines for missing their 2025 targets, letting them
[17:18] make up the difference over the next two years.
[17:21] It was the first clear signal that the regulatory architecture
[17:25] was structurally unsound. If the greenest continent on
[17:29] Earth couldn't hit its own interim targets without
[17:32] bankrupting its national champions, the 2035 ban was
[17:36] already looking shaky. To survive the regulatory
[17:40] minefield, Europe's automakers have been forced into a
[17:43] humiliating ritual, buying carbon credits from their
[17:47] competitors who avoid paying fines to Brussels.
[17:51] Companies like Volkswagen and Stelantis have sent millions of
[17:55] euros to pureplay EV makers like Tesla and Volvo to pool their
[17:59] emissions data. From a strategic perspective,
[18:03] this is madness. European incumbents are
[18:06] effectively subsidizing the very companies trying to put them out
[18:09] of business. Every euro paid to Tesla for a
[18:13] carbon credit is a euro that strengthens a foreign competitor
[18:17] while weakening the European balance sheet.
[18:20] It's a system that punishes established manufacturers for
[18:24] struggling with the transition while directly funding the war
[18:27] chess of their rivals. It's the corporate equivalent of
[18:31] paying your bully to stop punching you, only to watch him
[18:34] use the money to buy a baseball bat.
[18:37] Having realized that the 2035 ban was unrealistic, Brussels
[18:41] has now decided to redefine what ban means.
[18:45] In a classic example of EU bureaucratic gymnastics, the
[18:48] Commission has unveiled a plan to drop the target from a 100%
[18:53] reduction in emissions to 90%. The new rules create a complex
[18:58] system of offsets. Automakers can continue to sell
[19:02] combustion engine cars, provided that they compensate for the
[19:06] emissions by using green steel in their manufacturing or by
[19:10] proving the vehicles run on synthetic E fuels.
[19:14] This essentially turns the petrol car from a mass market
[19:17] commodity into a luxury good. As automotive analyst Mathias
[19:22] Schmidt noted, petrol cars will become the haute couture Swiss
[19:27] watches of the motor industry, Expensive, complex, and sold
[19:31] only to those wealthy enough to pay for the regulatory
[19:35] compliance. This compromise pleases no one,
[19:39] but it saves face. It allows politicians to claim
[19:42] that they're still decarbonizing, while allowing
[19:45] the German auto lobby to keep its engine plants running.
[19:48] It transforms a clear industrial directive into a maze of
[19:52] loopholes, ensuring that the future of the European auto
[19:55] industry will be decided not by engineers or consumers, but by
[20:00] compliance officers navigating the definition of sustainable
[20:04] steel. The disconnect, however, is
[20:06] palpable. While EU commissioners hailed
[20:09] the move as a pragmatic compromise that still delivers a
[20:13] 90% emissions cut, the industry views it merely as a first step.
[20:18] French automakers notably described the rollback not as a
[20:22] solution, but as an initial response to urgent challenges.
[20:27] Diplomatic code 4. We need much more.
[20:30] This creates a dangerous game of chicken.
[20:33] The European auto sector employs nearly 13 million people and
[20:38] accounts for 7% of the blocks GDP.
[20:41] It's politically too big to fail, yet commercially too weak
[20:45] to survive the current rules. Governments are betting that the
[20:49] industry will adapt. The industry is betting that
[20:52] when push comes to shove, Brussels will blink again rather
[20:56] than watch its historic manufacturing base migrate to
[20:59] China. While the West spends the next
[21:02] decade negotiating loopholes and refining hybrid trucks, China is
[21:06] finalizing its stranglehold on the only component that actually
[21:10] matters, the battery. China currently controls 85% of
[21:15] global lithium ion cell manufacturing capacity.
[21:19] For critical minerals like graphite and processed lithium,
[21:23] their dominance is nearly total. This is not a supply chain gap
[21:27] that can be closed with a few tax credits or a new factory in
[21:30] Tennessee. It's a structural monopoly.
[21:34] This really forces an uncomfortable question for
[21:37] Western industrial policy. Is a German electric car really
[21:42] German if it's most valuable and complex component?
[21:46] The battery is imported from China.
[21:49] When the battery pack accounts for 40% of the vehicles cost and
[21:53] determines its performance, the legacy automaker is reduced to
[21:57] the status of a final assembly plant for Chinese technology.
[22:02] Western governments are trying to wall off their market with
[22:05] tariffs, but Chinese manufacturers are simply
[22:08] climbing over the wall. Companies like BYD are already
[22:12] scouting locations to build factories inside Europe and
[22:16] Mexico. They're bringing their supply
[22:18] chains with them, meaning that they can build electric vehicles
[22:22] profitably at prices that Western legacy automakers still
[22:26] can't match, even in their own backyards.
[22:29] Europe's pivot to green steel offsets might buy its automakers
[22:34] a few more years of profitability from their piston
[22:37] engines, but it does nothing to address the fundamental reality
[22:41] that they've lost the battery war.
[22:44] Well, European politicians like to frame their decisions as
[22:47] independent. The reality is that Donald Trump
[22:51] has acted as a potent accelerant for their retreat.
[22:54] By slashing US fuel economy standards and removing tax
[22:58] credits, Trump gave Detroit permission to build gas trucks
[23:02] again, which US buyers like, inadvertently turning Europe
[23:07] into the primary battleground for the global EV war.
[23:11] As the US market walls itself off behind tariffs and
[23:14] regulatory apathy, the massive industrial capacity built up by
[23:19] Chinese and Korean battery makers need somewhere to go.
[23:23] They can't sell their surplus EVs to Americans, so they'll
[23:27] flood the only remaining open market Europe.
[23:30] As the Financial Times noted, by slowing the transition in the
[23:35] US, Trump has effectively accelerated that future for
[23:38] Europe, forcing the continent to face the competitive onslaught
[23:42] years earlier than expected. While Europe is worried about
[23:46] the inflow of cheap Chinese cars, which could cause mass
[23:49] layoffs at auto plants, other countries like Australia who
[23:53] don't have an auto industry, are just happy to be getting cheaper
[23:58] cars. This leads to the central
[24:00] question haunting Western boardrooms.
[24:03] Is this retreat a catastrophic strategic error?
[24:06] Financial journalists and climate think tanks argue that
[24:10] by taking their foot off the pedal now, Western automakers
[24:14] are ceding the technology of the future to China, guaranteeing
[24:18] their eventual obsolescence. They view the pivot to hybrids
[24:22] as a Kodak moment, a desperate cling to a dying business model.
[24:27] But there is a more cynical and perhaps more accurate
[24:31] interpretation. You can only fall behind in a
[24:34] race if everyone is running towards the same finish line.
[24:38] For the last five years, the EV race was propelled not by
[24:41] consumer demand but by government push.
[24:44] The moment the subsidies were removed in Germany, sales
[24:48] collapsed. The moment the tax credits
[24:50] vanished in the US, inventory started piling up rather than
[24:55] falling behind. Western Automate are likely just
[24:58] realigning with reality. They're pivoting from building
[25:02] the cars regulators wanted them to build back to building the
[25:05] cars their customers actually want to buy.
[25:09] The events of late 2025 marked the end of the inevitability
[25:13] narrative, even if the physics of battery efficiency and the
[25:17] imperative of climate change remain.
[25:20] For five years, the global auto industry operated on a timeline
[25:24] dictated by politicians rather than their customers, engineers
[25:28] or economists. They tried to force a
[25:31] technological transition to happen overnight by flooding the
[25:35] market with subsidized capital and banning the competition.
[25:39] That accelerationist experiment appears to be stalling.
[25:44] The economics have simply become undeniable.
[25:47] In 2019, the average new car in the United States cost $39,000.
[25:53] Today, it costs over $50,000, meaning that consumers are
[25:58] already feeling squeezed. Even with the federal tax
[26:02] credit, the average EV still commanded a premium that
[26:06] mainstream buyers were rejecting.
[26:09] A looming threat to the EV industry is the cost of fuel.
[26:13] Big Tech has entered the energy market with an appetite that
[26:16] makes the auto industry look small.
[26:19] With open AI planning to build data centers that will consume
[26:23] 23 gigawatts of power in the next five years, or the output
[26:28] of 23 nuclear power stations and other AI providers planning
[26:32] similar build out. The electric vehicle is about to
[26:35] enter a bidding war for electricity against the world's
[26:39] best funded companies. If EVs have to compete with data
[26:43] centers Centers for grid capacity, the error of cheap
[26:46] home charging may come to an end, dismantling the last
[26:51] remaining economic argument for going electric.
[26:54] The transition to Net 0 has been indefinitely rescheduled.
[26:59] The world is now backing away from the edge of the electric
[27:02] Cliff. According to Bloomberg, plug in
[27:05] car sales in the US are expected to plunge 30% in the final
[27:09] quarter of this year to the lowest since 2022.
[27:13] For next year, they're projecting little or no growth
[27:17] due to the removal of federal EV tax credits and the weakening of
[27:21] US fuel economy and emission standards.
[27:25] The British government has insisted that it will not dilute
[27:29] plans to shift all new car sales to electric vehicles starting in
[27:32] 2035. I think we can expect to see
[27:36] more shake UPS in Europe in the coming years as more and more
[27:39] EVs flood in from China. Ford told the FT that they
[27:44] reject the idea that they botched their EV transition,
[27:48] saying that the losses were driven primarily by unrealistic
[27:52] optimism across the industry about consumer demand for EVs.
[27:57] Andrew Frick, the head of Ford's petrol, engine and electric
[28:01] businesses, told the reporters that they are looking at the
[28:05] market as it is today, not as everyone predicted it to be 5
[28:09] years ago. Thanks for tuning into this
[28:12] week's podcast, which is entirely supported by viewers
[28:15] like you on Patreon. If you'd like to sign up to
[28:18] support the podcast, there's a link in the show notes.
[28:21] Have a great week and talk to you again soon.
[28:24] Bye.

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