Latest / Elon Musk Podcast / EVs in the USA are getting political - Tesla - Ford - Biden and Trump

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EVs in the USA are getting political - Tesla - Ford - Biden and Trump · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk Podcast.
• 0:05
  This is a show where we discuss the critical Crossroads, The
• 0:08
  Shape, SpaceX, Tesla X, The Boring Company, and Neuralink,
• 0:13
  And I'm your host, Will Walden. Today's episode focuses on the
• 0:18
  complex ideas surrounding E VS in the United States, and while
• 0:23
  the market has seen a significant increase with over
• 0:26
  1,000,000 E VS sold in the last year, certain models like Ford's
• 0:30
  Lightning F-150 are facing slow sales.
• 0:34
  This topic is becoming increasingly significant in
• 0:37
  policies, political areas, and the next election cycle may
• 0:43
  highlight EVs as a key issue. The growth of the US market for
• 0:48
  EVs is undeniable, yet it's not maintaining its previously rapid
• 0:52
  pace. Despite breaking sales records,
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  some high profile EVs are struggling in the market,
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  evidenced by Ford's recent cut in production targets for its
• 1:02
  Lightning F-150 model. Now Allen Baum, an independent
• 1:06
  auto journalist, said this The answer to the state of EVs is
• 1:10
  yes, but with a caveat. This reflects the nuance reality
• 1:15
  of this market, where growth coexists with certain challenges
• 1:19
  that need to be met by the providers of EVs.
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  Now the political landscape is deeply divided on EVs.
• 1:27
  Democrats view President Biden's support for EVs is beneficial
• 1:30
  for both the economy and also the environment.
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  In contrast, some Republicans criticize it as a government
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  overreach favoring the elite. Now this divide might influence
• 1:40
  voter perspectives on EVs, impacting both the auto industry
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  and broader goals. So former President Donald Trump
• 1:48
  has expressed criticism about EVs, setting limitations and
• 1:51
  range and cost. Now this sentiment resonates
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  with some voters and reflects the ongoing debate over EV
• 1:58
  practicality and affordability. He has some good points.
• 2:02
  You can usually go around 300 miles on an EV charge, so it's a
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  round figure. 300 miles. If you're taking a road trip
• 2:11
  across the country and you don't really want to stop that much
• 2:14
  isn't really that far, and the charging times are pretty long
• 2:20
  if you compare them to a regular gas car.
• 2:24
  So the journey of E VS towards mass market adoption has been
• 2:28
  pretty gradual. Early adopters, typically
• 2:31
  wealthier, have embraced E VS, while more budget conscious
• 2:34
  consumers remain hesitant, concerned about issues like
• 2:37
  charging infrastructure and vehicle range.
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  Now the coming year promises more affordable EV options and
• 2:43
  an expanded network of charging stations, though.
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  And this expansion coincides with significant political
• 2:48
  decisions, including a presidential election which
• 2:51
  could influence the EV market's direction and its role in
• 2:55
  reducing carbon emissions. Now political changes,
• 2:58
  particularly a shift in the White House's party, could
• 3:01
  impact the future of EV incentives and emission
• 3:03
  regulations. This uncertainty as to the
• 3:06
  market's volatility and questions the long term growth
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  trajectory of EVs. And despite potential concerns
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  about an EV downturn, President Biden and his administration
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  remains optimistic. The Energy Department and the
• 3:19
  White House advisors emphasize the sustained growth and
• 3:22
  customer satisfaction in the EV sector, attributing it to
• 3:26
  Biden's leadership. Now Biden's re election campaign
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  counters Trump's criticisms by highlighting the
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  administration's success in reviving US auto manufacturing
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  and competing directly with China in the EV market.
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  This back and forth underscores the political way the EV's carry
• 3:41
  in this current discourse, and recent data reveals a mixed
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  picture though. While EV sales have grown
• 3:48
  impressively, the rate of growth has kind of slowed.
• 3:51
  The political discourse is seized on data showing E VS
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  lingering longer on dealer lots compared to traditional
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  vehicles, fueling debate over their market appeal.
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  Now, Republican politicians, leveraging data on EV sales
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  challenges, questioned the wisdom of pushing E VS too
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  aggressively. This perspective is particularly
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  relevant in regions reliant on auto manufacturing, where the
• 4:12
  market's reception of EVs could influence upcoming elections.
• 4:17
  Surprisingly, though, some iconic American made EVs are
• 4:20
  among those facing slower sales, raising questions about market
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  preferences and strategies. Despite this, congressional
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  Democrats and policy experts see the slowdown as a minor hiccup
• 4:31
  in a generally positive trend. Now, the slowdown in EV sales in
• 4:36
  the United States can be traced back to the unrealistic
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  expectations sent during the COVID-19 pandemic.
• 4:42
  During this period, consumers, eager to replace their aging
• 4:45
  vehicles after lockdowns, flocked to E VS, leading to
• 4:49
  unprecedented demand. Now automakers, encouraged by
• 4:52
  these trends, projected continued high demand and ramped
• 4:55
  up production goals. Companies like Ford and General
• 4:58
  Motors announced ambitious production schedules,
• 5:00
  anticipating that the surge in EV interest would persist post
• 5:04
  pandemic. However, these projections did
• 5:06
  not fully account for the changing economic landscape and
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  consumer sentiment as the world emerged from the pandemic's
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  immediate impacts. Now, the post pandemic reality
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  for the EV market has been shaped by several factors.
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  Inflation and rising interest rates have made EVs typically
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  more expensive than traditional vehicles and less accessible for
• 5:26
  many customers. The affordability gap became
• 5:29
  more pronounced as the economic landscape shifted.
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  Additionally, the pandemic highlighted the limitations in
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  the supply chain affecting production and availability of
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  these new vehicles. This period also revealed a
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  critical insight. There's a finite number of
• 5:43
  consumers willing to invest in a new type of vehicle, especially
• 5:47
  when prices exceed $50,000. This realization has forced
• 5:51
  automakers to re evaluate their strategies and production
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  targets. As a result, automakers are
• 5:56
  adjusting to this new reality, with some like Ford, cutting
• 6:00
  back their production targets to align better with current
• 6:02
  demand. The initial enthusiasm that led
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  to inflated production goals is now giving way to a more
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  measured approach focusing on sustainable growth and market
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  stability. This recalibration is crucial
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  for the long term health of the EV market, ensuring that it can
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  steadily grow and adapt to the evolving needs and financial
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  capabilities of consumers. The lessons learned during this
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  adjustment period that we're in right now will likely shape the
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  future strategies of EV manufacturers, emphasizing the
• 6:31
  importance of flexibility and responsiveness to markets now.
• 6:35
  Despite recent challenges though, the future of EVs in the
• 6:39
  US looks pretty dynamic, with a range of new, potentially more
• 6:43
  affordable models set to enter the market in the coming two
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  years. This diversification could
• 6:49
  address current gaps in consumer demand and preferences.
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  And as 2024 approaches, the trajectory of EV demand and its
• 6:55
  political ramifications remain crucial.
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  Questions. The introduction of new models
• 7:00
  catering to different market segments, combined with ongoing
• 7:03
  investments in the EV infrastructure will play a huge
• 7:06
  role in shaping the future of EVs in the United States.
• 7:11
  Hey, thank you so much for listening today.
• 7:13
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• 7:15
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• 7:22
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• 7:32
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• 7:39
  please take care of yourselves and each other and I'll see you
• 7:41
  tomorrow.