🧭 The Weekly Scoop

Hey friend - I hope you have a stellar weekend!

Here’s what you need to know this week.…

Besides the conflicts in the Middle East and Eastern Europe pushing oil prices higher, the most significant trend of the week was the demise of electric vehicles. Turn back the clock two years, and every automaker was confident that the electric wave was imminent and powerful.

This week, Ford made waves by abandoning its electric ambitions. Even with the second-highest EV sales in the US last quarter, Ford doesn’t see an immediate return. It expects to lose $5B this year on its electric business. Ford announced plans to delay the releases of electric SUVs and trucks while also delaying construction on battery plants and downsizing factories dedicated to its electric F-150. It’s pivoting to hybrids instead.

Akio Toyoda is getting the last laugh here. He was Toyota’s CEO for almost fifteen years, leading the world in hybrids with the Prius and dismissing calls for battery electric vehicles as naive. Toyoda dragged his feet when all the major automakers launched competing pledges to hit all-electric within 10-15 years. He was replaced last April, and the new CEO jumped into electric with both feet, ramping up production on new models.

It turns out Americans aren’t really ready for electric vehicles. Every major electric automaker has been slashing prices to spur demand. Even with new tax credits for electric cars, people aren’t buying. Even the EV leader, Tesla, reported slumping sales this quarter.

Part of it is the price tag, but significant logistical and cultural barriers exist. There just aren’t enough charging stations yet to make electric vehicles an easy choice for most Americans. That’s changing rapidly, but chargers are nowhere near as prevalent as gas stations yet. Culturally, EVs are complicated. Acknowledging climate change and preferring less pollution have become political statements. Elon Musk has become such a divisive figure that it’s hard to separate buying a Tesla from supporting his views.

There’s also the fact that car sales are down in general because most Americans are struggling to make ends meet. Personal savings rates are a fraction of historical averages. Plus, interest rates are higher than they have been in years, so forget about leasing a brand-new car.

What if GM and Ford decided to invest the money in mass transportation? There’s a low-carbon solution in a much less crowded market. I’m sure they could use their lobbying power to clear any red tape. Has anyone proposed this to them? Let’s get them on the phone. The Ford F-350 highspeed rail…

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