The Economy

To follow up on my post above:

 

West Texas crude oil hit $123 a barrel today. Y'all might want to top off your tanks.

 

Do me a favor and stick to your own thoughts rather than attributing your BS to me. I had to search, but I know the reality of the things I have posted over and over again and I have never said anything close to "Will never work." Here are some examples of what I actually have had to say, from a few of my posts.

 

FWIW. ... demand for electric vehicles has ticked up a bit in the last month or two b/c of rising gas prices, but even with the subsidization of $7,500 on each car for many models, it still isn't a good value proposition for most people, especially those who are hardest hit by gas prices and need a car that costs $25K or less, not one that costs $50K + and is well beyond their means. EVs still occupy a niche market, and they are largely being sold to more affluent people who are looking for luxury models. The price of gas is going to need to go up from here before they seriously garner increased demand as a financial proposition for the typical person.

 

The average cost of a new EV -- what people are actually buying, all-in cost, not a base model price -- is more than $60K according to Edmunds. That compares to less than $46K for all purchases (including EVs).

 

When home computers or cell phones or big screen TVs were introduced they were novel things. They weren't trying to supplant things that already existed that performed the same exact function for people, but cost less.

Which is precisely why the EV market has gravitated toward the luxury end where it doesn't have to compete on cost / value. The (still niche) demand that has existed has been for other reasons.

 

Also, it's true that you can buy say a Nissan Leaf for $30 to $40K. But the way most people still look at it, if that is the kind of car they want to drive, they can buy a new Nissan Sentra for $20K to $25K, and it won't depreciate in value as quickly as the electric car.

I know a lot of people are desirous of EVs making financial sense in a way for the typical person that they haven't been able to. But I think I'm just pointing out reality. Anyone who buys one is willing, and has the means, to pay a premium relative to a comparable gas-powered car. Can that change if the price of gas goes on a sustained run beyond where we're at, or if the prices of EVs come down? Of course. It's not the case yet, though.