Large Parts Of America Still Have ‘No Interest’ In EVs
Good morning! It’s Friday, March 8, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
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1st Gear: Many States Still ‘Don’t Have Anything To Do With EVs’
Sales of electric cars are slowly but surely getting to the point lawmakers are happy with. Last year, EVs accounted for almost ten percent of all new car registrations and registrations of hybrid models were even higher than that. It turns out, however, that looking at the total number of EVs sold in America doesn’t tell the whole story, as some states really aren’t interested in making the switch to battery power.
According to a new report from the New York Times, states like California are flying the flag for EVs, with cities including San Francisco reporting that 30 percent of new cars sold were EVs in 2023. In contrast, metro areas like Buffalo, New York, and Detroit, Michigan, are at the complete other end of the spectrum. As the Times reports:
In 2023, electric vehicles accounted for more than 30 percent of auto registrations in the San Francisco Bay Area, according to data from S&P Global Mobility. In Los Angeles, that number was close to 25 percent.
At the same time, “there are still parts of the U.S. that, frankly, don’t have anything to do with E.V.s,” Mr. Libby said. “They just have no interest in them.” Just 3 percent of vehicle registrations were electric in Detroit, the country’s auto capital, and only 1 percent in the Bismarck, N.D. area.
Americans who have made the shift to electric vehicles so far tend to be richer, younger and more likely to live in urban areas than the average person, research shows. Many reported being motivated by environmental concerns, and some by interest in the latest, cutting-edge technology.
When it comes to the question of why people in areas like McAllen, Texas, and Cleveland, Ohio, haven’t made the switch to battery power just yet it’s an all-too familiar answer. The Times says it’s all about range, charging infrastructure and higher cost.
Sure, the price of a Tesla Model Y has been slashed in recent months to make it one of the few new EVs that similarly priced to their gas-powered counterparts, but that’s just one part of the problem. As the Times explains:
“Being able to charge at home is the thing that very much still divides the E.V. experience from pretty easy and kind of hard,” said Ken Kurani, a researcher focused on electric vehicles at the University of California, Davis.
Public chargers can be less efficient in freezing temperatures, too. Some Tesla owners in Chicago struggled with charging during an icy blast in January. Experts said that was an unusual case. Norway, no stranger to cold, has the highest E.V. adoption rate in the world. Still, stories of charging troubles like these can affect public attitudes, Dr. Kurani said.
While sales of EVs are still growing, it appears as if the early adopters have now been convinced. Now, the Times reports that it’s now the rural drivers in small towns that automakers need to convince an electric car is the right way to go. Those drivers may be some of the most difficult to switch onto battery power.
2nd Gear: Tesla Drivers Can’t Sue Over False EV Ranges
Tesla will dodge a hefty legal battle after a group of owners in California was told that their class action suit alleging the EV maker falsified range figures couldn’t go ahead. The case alleged that Tesla “fraudulently” encouraged consumers to buy its cars by overstating the distance they could travel on a single charge, reports Reuters.
Now, a judge in California has ruled that the plaintiffs cannot pursue the class action suit and must instead chase “individual arbitration rather than banding together,” reports Reuters. According to the site:
Tesla and lawyers for the company did not immediately respond to requests for comment. Tesla has called the claims in the lawsuits “unmeritorious.”
Attorneys for the plaintiffs in the two cases either declined to comment or did not immediately respond to a request for one.
[U.S. district judge Yvonne Gonzalez] Rogers’ order did not address the merits of the drivers’ claims. She did not dismiss the lawsuits and said she could eventually issue an injunction against Tesla if the drivers successfully arbitrated their claims under California’s unfair competition law and other provisions.
The case follows a move from Tesla to actually lower the advertised ranges of its models earlier this year. The American automaker was forced to lower the range estimates across its lineup in January when new U.S. government vehicle-testing regulations were enforced, reports Reuters.
3rd Gear: Rivian Will Keep R2 Production In Illinois To Save Money
The Rivian R2 is the latest electric SUV from the Amazon-backed EV startup that promises modern looks, a torch in the door and a more affordable price tag when it launches sometime in 2026. Now, the automaker has revealed some of the steps it will take to hit the car’s proposed $45,000 price.
Instead of opening up a whole new factory for the (slightly) more budget-friendly SUV, Rivian will keep production of the new model in Normal, Illinois, in an attempt to keep costs down, reports Automotive News. The site reports:
“To enable R2 to be launched earlier and with a considerable reduction in the capital required for its launch, Rivian plans to start production of R2 in its existing Normal, Illinois, manufacturing facility,” the company said in a statement Thursday.
Previously, Rivian had planned to wait for a future plant near Atlanta, Ga., to produce the vehicle later in 2026.
Because of the move, Rivian is now aiming to launch the new R2 SUV in 2026 with production slated to begin in the first half of the year. However, the change in production doesn’t mean that the Georgia plant has been canned, instead its opening has merely been put on the back burner.
During last night’s launch of the R2, and surprise R3 EV, Rivian boss RJ Scaringe told Automotive News that the site “remains really important.” He added that the opening of a second plant in Georgia would be key to “scaling” across its new lineup, including the R2, R3, R3X.
4th Gear: Democrats Are Now Pushing For Higher Tariffs On Chinese EVs
America’s tirade against cheap Chinese EVs continues this week with lawmakers now calling for even higher tariffs to be imposed on Chinese electric cars destined for America’s highways.
According to a report from Reuters, three senate Democrats have called on president Joe Biden to ramp up the financial penalties imposed on EVs imported into America from China. The three senators, each hailing from automaking states, claimed the step was essential to preserve auto manufacturing in America. Reuters reports:
“Allowing heavily subsidized Chinese vehicles to enter the U.S. marketplace would endanger American automotive manufacturing,” said the letter first reported by Reuters, from Senators Gary Peters and Debbie Stabenow of Michigan and Sherrod Brown of Ohio.
“Artificially low-priced Chinese EVs flooding the U.S. would cost thousands of American jobs and endanger the survival of the U.S. automotive industry as a whole.”
The Biden administration is reportedly considering a tariff hike on EVs from China, reports Reuters. The move would be the latest in a string of anti-Chinese EV sentiment to be washing through Washington. Just last week, the Commerce Department went so far as to open an investigation into whether Chinese vehicles posed a national security risk.
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