It’s Over… EV’s Won’t Sell Even in NYC
Electric vehicles (EVs) are supposed to be the future, but right now, they’re stuck in neutral. Especially in places like New York City, mandated EV adoption is clashing with harsh realities. In this video, we’ll use data and insights to dissect the challenges facing EVs and explore potential solutions.
Startup Struggles: A Capital-Intensive Business
- Launching an EV company requires billions. Building a factory and tooling can cost $500 million to $1 billion, with additional millions needed for supplier tooling and product development.
- Unlike established automakers, these startups lack experience and haven’t perfected their product. This makes it difficult to predict demand, potentially leading to overspending on unpopular models.
The Charging Conundrum: Infrastructure Woes
- Public charging infrastructure is scarce, especially in densely populated areas like NYC. Even if you find a charger, it might be occupied.
- Installing charging stations everywhere, particularly in crowded cities, might be impractical due to space limitations.
- The national grid’s capacity to handle millions of EVs charging simultaneously is a major question mark. Building additional power plants might be necessary.
EV Ownership Challenges in NYC – A Perfect Storm
- Apartment living is prevalent in NYC, and most apartments lack the means to charge EVs. Finding a rental with an EV-friendly garage is difficult.
- Even condo buildings with garages might not have charging infrastructure due to the cost and maintenance burden.
- Surprisingly, New York City’s government vehicles have dedicated charging stations inaccessible to the public. This creates a skewed perception of EV ownership challenges.
- Shockingly high insurance costs for EVs due to the potential for battery damage in accidents discourages ownership.
- Colder climates like New York’s winters negatively impact battery performance, reducing range and increasing charging frequency.
Tesla: A Glimmer of Hope (But Not the Whole Solution)
- Tesla’s superior charging technology gives them an edge over competitors.
- Their strategy of licensing their charging infrastructure to other manufacturers could be a significant revenue stream.
The Road Ahead: Potential Solutions and Questions
- Technological advancements in battery performance and charging efficiency are crucial.
- A massive, nationwide effort to build charging infrastructure is essential.
- Addressing the insurance cost disparity between EVs and gasoline vehicles is necessary.
- Are forced EV mandates realistic considering the current limitations?
- What can cities like New York do to incentivize EV adoption while addressing infrastructure challenges?
This is just the beginning of the conversation. Let me know your thoughts in the comments below!
Key Takeaways:
- The high cost of starting an EV company and the lack of proven products are major hurdles for startups.
- Inadequate charging infrastructure, grid limitations, and unique challenges in dense cities like NYC are significant roadblocks.
- Tesla’s technological edge and infrastructure licensing strategy could be a saving grace.
- Technological advancements and a nationwide infrastructure push are critical for EV progress.
- The effectiveness of forced EV mandates is debatable given the current obstacles.
