To The Moon

Diminishing Interest. A new report from automotive research firm J.D. Power noted fading EV interest from US consumers. The survey of 8,179 consumers was conducted from January to April 2024. The data showed that for the first time since 2021 when J.D. Power began its Electric Vehicle Consideration Study, EV buying sentiment has dropped. (see below) The percentage of people who say they are ”very likely” to buy an EV is down -2% to 24%, compared to 26% last year. Those “overall likely” consumers have decreased by -3% to 58%, from 61% a year ago. Man Culprit. Main reason consumers are less excited about EVs is because there aren't enough charge points. Over half (52%) of people survey, cited this common concern. Topping it off, this “old” concern have risen by +3% from a year ago. Tesla Supercharger Fiasco. To make matters worse, the recent Tesla’s Supercharger network drama did not help. Earlier this month Tesla CEO Elon Musk laid off nearly the entire Supercharger organization (previously managed by exited Senior VP - Drew Baglino), that was responsible for the build-out of its best-in-class charging network. 2 days later, the ever fickle CEO backtracked on his initial stance. Instead he promised to invest in growing the network (wonder where the pressure came from). Unfortunately, the optics of the move certainly won’t help charging availability concerns. It is a joke that Tesla has since begun hiring some of the employees back. Did the US government remind Tesla that the car maker has just received a grant to build 41 charging stations for a princely sum of $17 million? Automakers like $General Motors(GM)$ , $Ford(F)$ , Kia, Polestar, $Stellantis NV(STLA)$, Honda, and others had signed up to access the Supercharger network and incorporate Tesla’s NACS plug inlet in their future vehicles, under the promise that the Supercharger network would continue to grow at a steady pace. More to it than meets the eye 4 Real Reasons The changing EV sentiment is more than just grappling with public charging infrastructure. The survey also found the following deterrents: Overall higher prices for EVs. Limited driving distance (range anxiety). Long charging times Inability to charge at both home or work. At the end of the day. J.D. Power says more education about incentives like tax credits will help boost sales, but it only goes so much. A lot of work still needed to be done by automakers, and perhaps the federal government, which has bet heavily on EV adoption in the country. “As understanding of EV incentives rises, so does the likelihood of consideration. (see above) According to J.D. Power, ED of EV intelligence, Stewart Stropp: About 40% of shoppers say they do not have a solid understanding of such incentives”. Prioritizing initiatives and efforts to educate consumers about the EV proposition is vital to accelerating market growth (including available incentives and how they work). State and federal tax credits help to make EVs more affordabile. Unfortunately, only 15 EVs qualify for full or partial federal tax credits. Guessed many Americans are unaware that any EV sold in America, regardless of country of production or battery sourcing requirements, can get full federal tax credit of $7,500 when purchased through lease. The cost factor has led to automakers adding incentives and cutting prices of to boost EV sales. Look at how Tesla has slashed its pricing, just to stimulate demand. (see above) To further excite buyers, Tesla has even started offering 0.99% financing for new Model Y purchases for a limited time, earlier on 11 May 2024. (see above) He is that “desperate” or hungry. The Young Consumers. Drilling down the survey, it found that : The younger cohorts - Gen Z and Y, are less interested in electric cars than expected. Mainly due to lack of affordable EVs. Still the younger generation are still more likely to consider EVs than the older generation. My viewpoints: (mine & mine only) The survey has proven NIO’s conviction that swap station is the solution when it comes to EVs. No consumer should centre his/her life around the charging of his/her EV. It should be a seamless 3 to 5 minutes wait time - Max; just like at a gas station. No matter how quick - fast charging network could be - no EV owner would want to be caught dead in a queue - waiting for his/her turn to charge a vehicle; on the eve of public holiday or a rainy day. Mr musk abandon the swap station concept because it was resource intensive. He rather lines his own pocket than do the right thing. Funnily enough with all the veteran car makers adopting Tesla’s Supercharger network - has all the work of building the charging network infrastructure fall squarely on Tesla? Did the brilliant CEO bite off more than he could chew, leaving his competitors to focus on building better EVs, selling them and catching up with Tesla. Brilliant move by these ICE car makers. “1” for GM, Ford, Stellantis. “0” for Tesla. Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks. Walmart : Profitable #1 US Retailer. Buy ! Happy Days Are Here Again, not for TSLA. :-( FFIE : What's Happening? Meme Rally ? Do you think this survey predicts that Tesla’s Q2 earnings will be even lower than Q1 ? Do you think US consumers are disadvantaged by the 100% tariffs imposed by president Biden on Chinese EVs whose quality & technology is way more superior than Tesla ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents