Robinson Meyer, founding executive editor of Heatmap, discusses the structural decline of gas cars and the rise of EVs. China's EVs pose a threat to America's Big Three automakers. Biden aims for a green future made in America, but currently, China leads the EV market.
EV sales are rising despite media negativity, signaling a shift to sustainable transportation.
Big Three automakers in the US face challenges with EV transition and competition from Chinese companies.
Deep dives
Electric Vehicle Market Growth
Electric vehicles and hybrids are rapidly growing in demand in the US, with more Americans purchasing EVs year over year. Despite media narratives focusing on a slowdown in growth rates, the overall trend shows an increase in EV sales. While the growth rate has slightly decreased, the shift towards EVs is evident, outpacing traditional gas-powered cars. This growth signifies a positive shift towards more sustainable transportation options.
Challenges for Ford and GM in the EV Market
Ford and GM face challenges transitioning to electric vehicles, with both companies currently losing money on each EV sold. Their profitability mainly relies on selling gas-powered vehicles like trucks and SUVs. The shift towards EVs poses financial risks as they navigate high production costs and adapt to a new business model. Competition from overseas companies, especially Chinese automakers, poses a significant threat to Detroit automakers.
BYD's Success in the EV Market
BYD, a Chinese automaker, has excelled in the EV market by focusing on electrified vehicles and developing expertise in battery technology. With a vertically integrated approach and a strategic shift towards electric vehicles, BYD offers cost-effective EVs. Their commitment to EV manufacturing and competitive pricing has positioned them as a global leader in the EV space, outshining traditional automakers in cost efficiency.
Geopolitical Impact on Decarbonization Efforts
The geopolitical rivalry between the US and China has accelerated decarbonization efforts and the shift towards electric vehicles. The fear of losing the competitive edge in key industries has prompted both countries to invest heavily in clean energy technologies. While competition drives innovation, concerns arise about dependency on a single country for EV production. Balancing protectionism with global competitiveness is crucial for sustainable EV market growth and climate action.
Today, the media vibes around electric vehicles are all bad. But if you lift up and take in the big picture, electric vehicles and hybrids are taking over the market. Gas-powered cars are as much in structural decline right now as the cable bundle in TV.
Today’s guest, Robinson Meyer, the founding executive editor of the climate media company Heatmap, says that while EV sales are much stronger than the media doom-and-gloom narratives, something else is happening that deserves our attention. America’s Big Three automakers—Ford, General Motors, and Stellantis (which owns Dodge, Chrysler, and Jeep)—are in big trouble. China’s electric vehicles are going to hit Detroit "like a wrecking ball," he says. Joe Biden wants America’s green electric future to be made in America. But right now, the future of EVs is being made in China.