Tesla, Biden, and the Future of Electric Vehicles in 2022

Critics have long dismissed electric vehicles as too expensive, uncomfortable, and unrealistic. But 2022 did not hear them. Electric vehicle sales have been record high this year, and there is now billions of dollars of new federal funding designed to incentivize companies to build electric vehicles and encourage customers to buy them. As a result, electric vehicles feel less and less like a niche product for techies and environmentalists and more like cars that ordinary people can drive. The electric age seems to have finally arrived.

The numbers confirm this. Tesla production hundreds of thousands of electric vehicles every quarter, and new competitors such as Rivian and Lucid are also expanding their business. Major Detroit automakers have also redoubled their efforts to switch to electric vehicles. Ford says its EV sales are up more than 100% year-over-year, and GM plans to launch 10 new EV models for 2023. Overall, according to the data, an unprecedented number of electric vehicles were sold in the third quarter of this year. Cox Automotive tracking the automotive industry data. Demand for electric vehicles continues to outstrip supply, and the firm expects more than 1 million electric vehicles to be sold in the U.S. in 2023.

Of course, the coming electric age presents new challenges that will only become more apparent next year. Some consumers remain concerned that electric vehicles won’t be able to drive them as far as they want and that there are still not enough chargers. The network also needs a major upgrade to prepare for the influx of electric vehicles. Meanwhile, the production of electric vehicles requires rare materials, which are often processed only in one country – China – and raises critical environmental issues.

But the transition to electric vehicles is in full swing. More than 3.2 million electric vehicles have been sold in the US since 2011, according to the Electrification Coalition, meaning that a large number of people are already driving them, either as workers, as owners, or on a rental basis. Decade-old factories around Detroit are being upgraded to produce these new vehicles. Charging stations appear in office parking lots, in national parks, Starbucks Addressesand even refills. These are just some of the key milestones achieved by the US this year in a massive drive to spread electric vehicles.

EV is no longer synonymous with Tesla

Tesla started the electric vehicle industry and, depending on the quarter, is still the largest electric vehicle manufacturer in the world. However, the company’s influence in the EV market appears to be waning as demand for vehicles in general rises. Tesla accounted for 79 percent of electric vehicle registrations in 2020, but this year it has fallen to 65 percent of new electric vehicles registered in the US, according to Tesla. S&P Global Mobility.

One of the main reasons for the decline is that Tesla has mainly focused on luxury cars. It now faces competition from more affordable vehicles made by traditional automakers. There are currently 68 electric vehicle models available in the US, but according to the Electrification Coalition, 62 more models are expected. For that reason, it’s no surprise that Cox estimates Tesla will only have a 20 percent share of the electric vehicle market by 2025.

Cars aren’t the only vehicles that run on electricity.

In May, Ford began deliveries of its new F-150 Lightning, an electric version of the nation’s best-selling pickup truck. GM ramped up production of its electric Hummer, which first began shipping in end of last yearand even got a car shown in the new Call of Duty. Rivian, the first company to produce an EV pickup in the USA, currently made thousands of carsand it is expected that at some point Tesla will release its Blade Runner-esk cybertruck. All these trucks are evidence that our vision of what an electric vehicle can be and what it can look like is rapidly changing.

Some of the most important new electric vehicles aren’t as flashy. The government spends billions of dollars on electrify school buses and mail trucks across the country that could have a real impact on the environment. Delivery fleets can now switch to electric vehicles and reduce their emissions. Even the huge trucks that travel hundreds of miles a day to move goods around the country are slowly becoming electric. This year, Daimler unveiled its eActros LongHaul electric heavy duty truck, and Tesla launched delivery its first Semi trucks for PepsiCo just a few weeks ago.

Detroit switched to electric cars

Electric vehicles were the star of the show at the first Detroit auto show since the start of the Covid-19 pandemic. The event, featuring President Joe Biden and Transportation Secretary Pete Buttigieg, was meant to show how traditional automakers are upgrading factories and some of the countries’ most popular car models for the electric age. But since the government offers these companies billions of loans and tons of promotionthe fight for the future of cars and trucks is also brewing.

These century-old automakers are rushing to hire technicians who can program the algorithms that drive their increasingly electric and computerized cars. These companies are also locating some of their new ventures in states that are less favorable to an organized workforce than Car City. At the same time, some employees repulsion on this vision. Earlier this month, employees at a new battery plant set up by General Motors and LG Energy voted to join the United Auto Workers.

Russia invaded Ukraine

In February, Russia attacked Ukraine, starting a war that left thousands dead and millions more forced to flee their homes. The conflict also led to an energy crisis. Governments are now even more aware of their dependence on Russian gas, and some transition acceleration to renewable energy sources. At the same time, some consumers switched to electric vehicles as a way to avoid rising fuel prices. Even Secretary Buttigieg broken idea.

A nationwide electric vehicle charging network emerges

Tens of thousands of public electric vehicle chargers have already been installed in the US, according to the US Department of Energy. Data Center for Alternative Fuels. More chargers appear every month. The number of Tesla Superchargers is up more than 30 percent from last year, according to the company. third quarter investor report. Electrify America, another charging network, says the number of times people have charged electric vehicles at their stations has already surpassed the nearly 1.5 million charging sessions they saw in 2021.

But we still need more chargers. To prepare, the Biden administration spent 2022 developing plans for a nationwide charger network. White House Highlights $5 billion from the bipartisan Infrastructure Act to states to help build chargers on 53,000 miles of highway, and allocated another $2.5 billion to install chargers in underserved areas. The idea is to remove any fear that someone might end up in a place with nowhere to connect.

The government is getting serious

In addition to the nationwide charging network, the Infrastructure Act allocates billions to strengthen the power grid and increase battery production capacity. Two new legislative packages signed this year complement these investments: the Inflation Reduction Act (IRA), which is one of the largest investments in climate change, and the Chip Act, which will fund new American chip manufacturing, including chips. which is crucial for the production of electric vehicles.

The government has used 2022 to set new electrification dates. The IRA has updated tax breaks designed to encourage consumers and businesses to buy electric vehicles, but has also pushed companies to accelerate plans to make electric vehicles and batteries in the US (US Department of Commerce). recently arrested aspects of the program until March). At the same time, California announced this year that it would ban the sale of new gasoline-powered vehicles by 2035, with Oregon taking the initiative. the same obligation on Tuesday. So, while electric vehicles are still a long way off, time is ticking.

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